Tips for managing personal finances for start-ups and small business owners

When you are just starting up or if you have a small business, the initial few years are high investment years in terms of both product validation and market uptake as well as steady income. In this phase, it is essential to manage your personal finance well. Because when personal finances are not managed well, your business will also suffer and start a chain of losses.

Here are some tips for your personal finance management:

Don’t quit your job

A start-up usually demands high capital investment in its initial years. You may begin by investing a good sum of money into your business, but you will realise that you will need many such smaller investments during the initial growth years. Some of these may have been accounted for while some may not have been accounted for.

So, it is a good idea to continue at least partially with your steady income and job while working on your start-up idea side by side. This will ensure that you are financially secure for your personal expenses at the very least. At the same time, it will give you freedom for growing the start-up to a point where you can quit your job and investment full time, energy and resources in your venture.

Diversify your income sources

It is great to have focus, ambition and drive in whatever you do. However, from a practical perspective, it is a wise decision to diversify your income sources and hedge your risks. This will ensure that when one income stream is struggling, you have the ability to depend on other sources for at least covering your bills and regular expenses.

Improve your Credit Score 

A good credit score is your gateway to acquiring easy credit options like a personal loan or personal line of credit. It proves your creditworthiness and assures lenders of your ability to repay. This means a lot for your personal finance, as you shall be able to negotiate good interest rates, easy repayment options and more. If you have a good credit score, you may also be able to secure a slow interest personal loan or line of credit without collateral. MoneyTap is an app which provides a seamless online loan and personal credit, in a fashion where you pay interest only on the amount of the approved loan that you actually utilize. If you are looking for a bad credit loan, try Lendforall.

Here are some tips to improve your credit score:

  • Clear any bills that are due, on time
  • Clear your credit card debt as soon as possible
  • Apply for a new credit card only if needed, and try to sparse out credit card applications
  • Don’t close your unused credit cards, to strengthen your credit history
  • Diversify the forms of credit that you use

Separate Business from Personal finance 

Most start-up owners find it difficult to delink their personal life from their business. This trait is often instrumental in making their business successful, but the same characteristic can have a negative impact when adopted in managing finances.

Small business owners make mistakes when they muddle up their personal finances and their business finances. Here are a few reasons why you must consciously make an effort to keep your finances separate:

  • It will help you save tax-related stress. Mixed finances and inter-usability of incomes without clarity often leads owners into tremendous stress during the tax filing season.
  • Separate accounts will lend more credibility to your business.
  • If there ever occurs a crisis on the business front, your personal assets will remain safe and you shall not have any personal liabilities.
  • It will ensure that you do not put any burden of your venture’s financial position on your personal account.



Diversify your investments

As a start-up owner, you will need all three – savings, investments and liquidity. But make sure that you hedge your risks by diversifying your investments in different fields like mutual funds, stock markets, etc. This will ensure you do not suffer any major losses from a single failed investment, if any. Learn about index funds at  thestockdork.com.

Develop a Frugal lifestyle

As a start-up, being thrifty is absolutely essential. Minimise your demands so that you can reinvest the maximum amount of your income into your business. In order to develop a frugal lifestyle, you need long term planning, budgeting your expenses, and always being on the lookout for ways to reduce unnecessary expenses.

Make an Emergency fund 

A contingency fund is a must-have for all small business owners and entrepreneurs. Maintain this fund at any cost, and ensure that you do not break this fund unless there is an actual emergency. If you really need funds, you could consider opting for other credit options like a personal line of credit or a personal loan which will help you get through your requirements without disturbing your emergency savings.

All in all, while working on your business idea is important, it is equally crucial to managing your finances which is the backbone of your business. And these small tips and practices can go a long way in developing a successful organization and stable personal income.

Author Bio

Lily Tran is a content writer, working for MoneyTap, who writes about all things Finance. Her passion for credit, debt, loan & investment drives her to help readers get an insight into everyday finance.



MSME लोन के लिए करना है आवेदन तो स्टेप बाय स्टेप फॉलो करना होगा यह आसान प्रोसेस

कई सारे लोगों को लॉकडाउन के बीच अपनी नौकरी से हाथ धोना पड़ा है। ऐसे में सरकार ने आमतौर पर स्टार्टअप और छोटे व्यवसाय उद्यमियों के लिए लोन की प्रक्रिया भी शुरू की है। MSME लोन यानि सूक्ष्म, लघु और मध्यम उद्यम लोन आमतौर पर स्टार्टअप और छोटे व्यवसाय उद्यमियों को ही दिए जाते हैं। और, ख़ास बात यह है कि इस लोन की चुकौती का समय अलग-अलग-कर्जदाता के हिसाब से अलग-अलग होती है

कोरोना वायरस की वजह से देशव्यापी लॉकडाउन के कारण लोगों को कई सारे मुश्किलों का सामना करना पड़ रहा है। इनमें मुश्किलों में सबसे मुख्य है, “नौकरी की समस्या” कई सारे लोगों को इस बीच अपनी नौकरी से हाथ धोना पड़ा है। ऐसे में सरकार ने आमतौर पर स्टार्टअप और छोटे व्यवसाय उद्यमियों के लिए लोन की प्रक्रिया भी शुरू की है।

MSME लोन यानि सूक्ष्म, लघु और मध्यम उद्यम लोन आमतौर पर स्टार्टअप और छोटे व्यवसाय उद्यमियों को ही दिए जाते हैं। और, ख़ास बात यह है कि इस लोन की चुकौती का समय अलग-अलग-कर्जदाता के हिसाब से अलग-अलग होती है। ब्याज दरों की पेशकश, आवेदक की प्रोफ़ाइल ? पिछले समय में व्यवसाय कैसा रहा है ? और, रीपेमेंट कैसा रहा है ? इस सभी बातों के आधार पर तय होती है।

बैंक और एनबीएफसी MSME लोन के लिए कुछ पात्रता मानदंड रखते हैं। वैसे MSME लोन को भी असुरक्षित लोन कहा जाता है। हाल ही में सरकार ने MSME की परिभाषा बदली है। अगर आप भी MSME लोन के लिए अप्लाई करना चाहते हैं तो आपको क्या करना चाहिए।

यह भी पढ़ें: इस बिज़नेस में होगी सालाना 10 लाख रुपए की कमाई, शुरुआत करने के लिए केंद्र सरकार की भी मिलेगी मदद

जानिए ये आसान प्रोसेस

  1. सबसे पहले, MSME के रजिस्ट्रेशन के लिए नेशनल पोर्टल Udyogaadhaar.gov.in वेबसाइट पर जाएं।
  2. आधार नंबर, उद्यमी का नाम और डिटेल दर्ज करें, इसके बाद ओटीपी जनरेट करने वाले बटन पर क्लिक करें।
  3. आपके आधार कार्ड से लिंक मोबाइल नंबर पर एक OTP जाएगा। अपना OTP भरें और “Validate” पर क्लिक करें, इसके बाद आपको एक आवेदन फॉर्म दिखाई देगा।
  4. आवश्यक सभी डिटेल दर्ज करें।
  5. आवेदन पत्र में सभी आवश्यक डिटेल भरने के बाद “सबमिट” पर क्लिक करें।
  6. “सबमिट” बटन पर क्लिक करने के बाद, पेज पूछेगा कि क्या आपने सही तरीके से सभी डेटा दर्ज किया है। पुष्टि करने के लिए “ओके” पर क्लिक करें।
  7. उसके बाद, आपको फिर से आधार से रजिस्टर्ड मोबाइल नंबर पर एक ओटीपी मिलेगा। ओटीपी भरें और आवेदन पत्र जमा करने के लिए “अंतिम सबमिट” पर क्लिक करें।
  8. अब आपको रजिस्ट्रेशन संख्या दिखेगा, इसे आगे के काम के लिए नोट कर लें।

लोन के आवेदन के लिए जरुरी दस्तावेज

  • पहचान प्रमाण के लिए आपको पासपोर्ट, ड्राइविंग लाइसेंस, पैन कार्ड, मतदाता पहचान पत्र की आवश्यकता होगी।
  • रेजिडेंस प्रूफ के लिए आपको पासपोर्ट, लीज एग्रीमेंट, ट्रेड लाइसेंस, टेलीफोन और बिजली बिल, राशन कार्ड और सेल्स टैक्स सर्टिफिकेट में से किसी एक की आवश्यकता होगी।
  • आयु प्रमाण के लिए पासपोर्ट, मतदाता पहचान पत्र, फोटो पैन कार्ड की जरुरत पड़ेगी।

MSME लोन के लिए जरुरी वित्तीय दस्तावेज

  1. पिछले 12 महीनों का बैंक स्टेटमेंट
  2. व्यवसाय रजिस्ट्रेशन सर्टिफिकेट
  3. प्रोपराइटर (एस) पैन कार्ड कॉपी
  4. कंपनी पैन कार्ड कॉपी
  5. पिछले 2 वर्षों की प्रॉफिट एंड लॉस की बैलेंस शीट कॉपी
  6. सेल टैक्स दस्तावेज
  7. नगर कर दस्तावेज़

कौन-कौन से बैंकों में है MSME लोन की सुविधा

  • भारतीय स्टेट बैंक
  • एचडीएफसी बैंक
  • इलाहाबाद बैंक
  • सेंट्रल बैंक ऑफ इंडिया
  • आईसीआईसीआई बैंक
  • बजाज फिनसर्व
  • ओरिएंटल बैंऑफ इंडिया

आपको बता दें कि, 1 जून को हुई केंद्रीय मंत्रिमंडल की बैठक में सूक्ष्म, लघु और मध्यम उद्यमों (MSMEs) की परिभाषा में बदलाव को मंजूरी दे दी गई है। इस बैठक के बाद से मध्यम उद्यमों के लिए टर्नओवर की सीमा को बढ़ाकर 250 करोड़ रुपये किया गया है।

BankBazaar bags new investment from Amazon in series D funding

This current funding comes more than two and a half years after the global credit rating agency Experian had led a $30 million financing round into the company. It has raised total funding of more than $110 million to date.

BankBazaar, the online marketplace is responsible for aiding customers compare and choose financial products which includes credit cards, insurance, fixed deposits, saving accounts, mutual funds and others over a very secure, user friendly, and intuitive platform. It was Founded in 2008 by Adhil Shetty, Arjun Shetty, and Rati Shetty,

BankBazaar has partnerships with more than 80 financial organizations in India including the largest nationalized and private banks, NBFCs and insurance companies so as to offer a never before range of financial products and services.

Bank bazaar is supported by global investors including Sequoia Capital, Walden International, Amazon, Fidelity Growth Partners and Mousse Partners. Bank Banzaar has bagged Rs 29 crore as a part of its ongoing Series D round from existing investors including Amazon, Sequoia and Walden SKT Venture Fund, according to its filings with the Registrar of Companies.

This current funding comes more than two and a half years after the global credit rating agency Experian had led a $30 million financing round into the company. It has raised total funding of more than $110 million to date.

“The funds from this round will be used to further strengthen our position as the leader in securing paperless access to loans, cards, and mutual funds,” Adhil Shetty, chief executive of BankBazaar said.

The company had last raised $59.1 million in a Series C round in July 2015 from Amazon, Fidelity Growth Partners, Mousse Partners and existing investors Sequoia Capital and Walden International. In January 2014, it had raised $13 million in Series B funding led by Sequoia Capital with participation from Walden International.

BankBazaar has issued 12,337 shares to Amazon for INR 5.6 Cr, 15,421 shared to Walden SKT Venture Fund for INR 7.1 Cr, 4,978 shares to GUS Holdings for INR 2.2 Cr, 5,782 shares to Sequoia for INR 2.6 Cr and 3,338 shares to Eight Roads for INR 1.5 Cr.