Pointers for entrepreneurs to manage their finance - Karan Bagga, Executive Director Altius Finserv
It won’t be wrong to call this eon an eon of entrepreneurs. The advent of social media and widespread use of internet and the allied benefits have brought us to a belvedere which allows us a liberty to innovate and re-invent. This digital age is doing a remarkable job in bringing people out of the closet and letting them experiment with their ideas. No wonder this has led to numerous entrepreneurs flocking the market with their ideas. Some of them stay and some don’t. But there are a large number of entrepreneurs who shelve their ideas just because they get their sums wrong. In the end, it’s the finance that decides the trajectory your business would take. Here are a few tips from Altius Finserv that would help the entrepreneurs in managing their money:
1. Don’t mix business with pleasure: The first advice from our end would be that don’t be an imbecile and spend the money meant for business on your luxuries. Draw the line. The money meant for business is a ‘no touch’ asset. Use it only for business purposes. This would allow you to make the most of the money and use it optimally.
2. Cut your travel and living cost” So you made a good amount of profit in the first financial year of your business. Now what? You straightaway go and buy yourself a decent house and a nice ride to the office? Drop the idea. You have just begun. Don’t go that extravagant. Simplicity is the art my friend. Cut your travel and living expenses if possible. Believe us, this saving would come in handy.
3. Get a little help from family: Well, as they say, blood is thicker than water. This is somewhat true when you have a brilliant idea and need investors to back it up. Let’s accept it that a family member won’t exploit you as much as an outsider investor would.
4. Hire a financial firm : This might sound cliched coming from us, but the fact is that you need to depend upon experts to look after your business proceedings. The taxes and so many other regulations and intricacies involved are unnerving. Aninvestment firm would not only handle all these overheads, but would also streamline the operations.
Altius Finserv Private Limited is a boutique investment banking firm offering financial advisory services like debt syndication, public offerings, private placements, spin-offs and restructurings.