CPA Talks About Personal & Business Finance Skills Every Business Owner Needs to Have

Is it possible to start a business without a budget? In this episode of Enlightened Entrepreneur Podcast, Certified Public Accountant Ravi Ramanrain shares a few pointers on securing finance when starting up a business.

 

Key Questions Asked

  • What are the important things to prepare before starting a business?
  • What pointers can you give to those who are planning to start their business
  • What pointers can you give to those who are planning to start their business
  • What do they do if they don’t have a budget?

 

Highlights of Lessons Learned

 

Pre-start up

– setting aside a year’s worth of take home pay is important. Having a savings cushion allows you to take the risk of doing business

– Have adequate planning for financial perspective.

 

Pointers for Startups

  1. Have at least one year’s worth of your take home pay before starting business
  2. Establish your credibility

> How?

  • education matters, work experience,
  • confidence in what you know, knowing your subject matter
  • get testimonials from your clients
  • keep good credit scores
  1. Create/plan a budget
  • a good plan for at least a year (recurring & non-recurring expenses)

           example: insurance, tax, unexpected costs

  • If you are not on top of your expenses eventually your business will lose

If you don’t have the budget, what do you do?

– hire an accountant to help you streamline your business

           – establish a relationship w/ a personal banker

           – personal bank loans may help

  1. Make use of networking.
  • Building relationship is always important in doing business
  1. Maximize your business through social media

Leave a Reply

Your email address will not be published. Required fields are marked *