The first step to solid financial planning for an entrepreneur is to pen down the goals that she would want to achieve. The next step would be to plan a strategy to achieve these goals. On Women’s Entrepreneurship Day, here are 10 financial tips for aspiring women entrepreneurs.
Every year, more than 144 countries across the world celebrate Women’s Entrepreneurship Day on November 19 to acknowledge, support and celebrate the contribution of women entrepreneurs towards economic growth and the betterment of society. For a long time, women were underrepresented in entrepreneurship. However, there has been a shift in the trend now.
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On Women’s Entrepreneurship Day, here are 10 financial tips for aspiring women entrepreneurs.
The first step to solid financial planning for an entrepreneur is to pen down the goals that she would want to achieve. The next step would be to plan a strategy to achieve these goals. Strategising would help in saving capital.
Develop a budget
A woman entrepreneur should keep a set budget by estimating the expenses. She can keep an amount aside every month for saving and investments with the help of a budget.
As an entrepreneur, it is important that a woman invests wisely and not pull out of an investment hastily. If an entrepreneur is unsure of an investment, it is better to learn more about it and about the options available.
Plan for future
An entrepreneur should analyse the past months or quarters and find out what was done right and what went wrong. Accordingly, the entrepreneur should plan for the future.
Invest in insurance
Those setting up a business have a lot on their plate. Investing in life and health insurance can give a sense of security and comfort to the entrepreneur.
Build an emergency fund
An entrepreneur should always have an emergency fund on which she can fall back when required. As one has to take risks in business, an emergency fund helps in providing some comfort in times of financial crisis.
Maintaining discipline in paying Goods and Services Tax helps entrepreneurs avoid unnecessary losses and gain concessions. Being responsible about taxes rewards the entrepreneurs as they would not lose money in penalties.
Carrying debt means making huge payouts as interest expenses. Hence, it is advisable to eliminate personal or business debt, if any. This would help to retain the cash flow in the business and avoid bankruptcy issues.
Have a backup plan
While taking risks in business and investments, an entrepreneur should always have a backup plan in place for times when things don’t go according to plan.
Separate personal and business finances
An entrepreneur should keep her personal finances completely independent from her business finances. This will help in keeping personal liabilities low and make the business a more credible organisation.