A great post by Utkarsh Arora on Facebook

Wednesday, April 24, 2019

It took me 1.5 years, multiple financial failures and emotionally hard time to learn the importance of business processes and financials.

The truth is, the business starts with enthusiasm but works on fundamental models.

Sharing some imperative financials elements to not to forget while starting/running your business:

- In your excitement of growing your business, don't forget to be on the top of your business financials.

- Keep at least 3 to 6 months of cash to keep your business up and running, don't live on the edge.

- Grip your monthly cash-burn at least 20-30% less than your revenue especially when you are bootstrapping.

- Maintain strict payment terms and contracts, otherwise, your customers will take you lightly and you will end up doing the same with your vendors.

- Manage your financials proactively, don't wait till 1st of the month to plan 'how to pay the employees.' Delaying of the salaries is the business nightmare.

- Forecasting sales are not enough, create a dedicated sheet for your expense forecasting, keep a well-honed check on it, trust me, it inflates like a balloon.

- Don't invest heavily on the less-needed assets (Softwares, expensive utilities etc ) too early.

Cheers!

Utkarsh Arora []

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