Five Basic To-Do's Before Launching Your Business Using Personal Savings

“It’s almost always harder to raise capital than you thought it would be, and it always takes longer. So plan for that.”  – Richard Harroch, Venture Capitalist and Author

The quote sums it all...

Holding a business idea just for lack of funds might turn into ‘forever.’ Needless to say, it is necessary to put a plan into action to erase those possibilities. But again, it is almost impossible to dodge the whole ‘capital sourcing’ question right away. 

There is a better way to face it, which is simple, ‘Plan It’. Some of the basic yet effective ways mentioned here can help you give a push to kickstart your business and bring it into reality. 

1. Getting rid of debt - The first and foremost key factor to rowing towards a successful entrepreneurship is to paddle off existing debts. Any amount of debt will make it difficult to balance between personal debt obligations and business expenditures. It is extremely important to be debt-free to focus completely towards business planning and execution.
2. One More Corpus To Build -Corpus for emergency, retirement, children's education and marriage are a mandatory course of action for a secured financial life. But, there is one more expenditure that will add up once you decide to launch your business using personal savings. You will need to allocate funds towards personal expenses separately, which will cover personal expenses during the formative months or years of business. Analysing fund requirement against personal expenses should be done comprehensively. 
3. Personal Financial Plan - Launching a business involves some serious planning, which implies that you might not want to ruin your business progress by overlooking your personal finances. One has to be vigilant about the possibility that business needs might pull away focus from personal financial planning that can again be detrimental to both self and business. It is essential to ensure that business capital needs to not compel you to commit personal assets, which are the backbone of your personal finances. 
4. Incorporate Lifestyle Changes - Lifestyle change cannot happen overnight. It takes an incredible amount of self-control, perseverance, and patience to change the way you live in order to live the way you dreamed. The transition demands substantial lifestyle changes, the thought of which, might even be palpitating for some. But, one has to see a bigger picture behind those small unsettling changes, which can become an advantage at a later time. Moreover, saving more on own translates into less dependency on external funding sources such as credit card or personal loan.
5. Make the Most of Your Time- It will be unjustifiable to not underline the significance of time, right from planning to execution. Time, if invested judiciously alongside money, can dramatically play in the success of your business. No matter if you are running your business concurrently with day job or as full-fledged, committing time is important, which otherwise can fail any amount of financial planning.

So, it's time to stop fretting about where to start, but START. 

About The Author: Reenika Avasthi is associated with Inverika Investment Solutions LLP as a Content Writer and Financial Planner. She is a Certified Financial Planner and a freelance content writer in the field of personal finance. Her interest in writing and spreading investor awareness motivated her to start blogging.

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