New Delhi: Starting a journey at a young age is never an easy task. Obstacles, obstacles, troubles and difficulties all come together, except for those who are so fortunate that people come to their aid, entrusting them with every possible solution on a silver platter. However, for those who are not lucky enough to start their journey, all they can do is muster up the courage to write a future for themselves. This is undoubtedly true for Pavan Reddy Appakonda, a young and dynamic entrepreneur, software engineer and investor.
Pawan said that if you are a young entrepreneur or a start-up then I appreciate you. Building a firm is definitely one of the most challenging things I’ve attempted. I quit my job a few years ago to pursue my entrepreneurial goals and have learned a lot along the way. In this article, I’ll share some of the financial lessons I learned while starting your own business, hoping you don’t make the same financial mistakes that many new entrepreneurs make.
Maintain personal financial objectives
It is important to develop the habit of saving and investing consistently to achieve your personal financial goals. These goals can include buying a car or house, saving for marriage or your children’s education, etc. You may not have a consistent income during the early stages of your firm or freelance work, but that shouldn’t stop you from investing your money whenever it’s available to you.
I think it is acceptable to start small, with as little as Rs 5000 per month; The goal is to maintain the momentum so that you can progressively increase this amount over time and set up enough corpus to meet your financial goals.
Be prepared for the unexpected.
It’s impossible to predict what a new business will bring down. Still, it can also happen like an important member of staff may need to leave for an extended period of time, or your most important customer may lose interest in working with you.
Because of this, you should think about what you will do if something goes wrong before you begin. It doesn’t matter if it’s a financial backup or anything; Being prepared will help your firm survive.
Maintain records of all transactions.
There is nothing more frustrating than a business not knowing where its money comes from or where it is going. By setting up the necessary infrastructure to record transactions, you can quickly defend yourself if someone tries to claim that they didn’t owe you money or that you didn’t pay them.
Create and maintain a budget
It is prudent to establish a budget and more importantly, follow it. Separate accounts and personal expenses for the company can assist you in this endeavor. If your personal and business expenses are mixed, you may not be able to estimate accurately how much money your firm brings in or how much it needs to survive.
beware of debt
You should avoid falling into the debt trap and take only those loans which are very important for the operation of your business. Avoid taking loans that do not directly or indirectly increase your revenue. Corona has already taught us the value of living a frugal and debt free life.
control tax
Entrepreneurs must manage their taxes wisely. There are many ways to help enterprises and freelancers collect income tax and save money on taxes. Being aware of these provisions and using them fully within the ambit of the law can go a long way towards achieving success.
future plan
Retirement planning is an important component of financial health. Since entrepreneurs will not have access to a pension, saving for retirement becomes even more important.
financial self-control
It is important to live life as fully as possible, but it must be done with discipline. While being responsible for money is usually a good idea, it doesn’t exclude an entrepreneur from spending it. Entrepreneurs should lead a life of financial discipline.
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