Entrepreneurship brings new challenges every day. It’s important for entrepreneur to be ready for these challenges and take appropriate and timely actions. One of the big challenges during initial days as well as during expansion is to manage healthy cashflows. When I started my business, someone gave me a great learning that businesses normally die only because they run out of cash. If one business idea doesn’t work, you may pivot to another one. However, if you run out of cash then the game is over for you even when you have a great idea.

I keep educating myself on new investment options through newspapers or by talking to experts.

I was able to take charge of my business cashflows as an entrepreneur from day one as I was handling my money since the time I was employed in corporate sector prior to starting my own business.  I had developed a disciplined approach to save money in various forms such as mutual funds (for this I opted for regular SIP), FDs, and real estate. This early savings gave me a good corpus to start my business. It also gave me good understanding of budgeting and cashflow management in my personal life.

I was able to extend this learning to my business wherein from day one I developed a habit of doing yearly and monthly planning. I have a good handle on my cash receipts, my outflows etc. I normally use my profits in business expansion in newer areas. All newer ideas also I develop a budget and a plan to ensure they don’t impact by main business cashflows. Due to this disciplined approach I am able to achieve a good healthy business growth without a need to raise external capital.

I developed a disciplined approach to save money in various forms such as mutual funds (for this I opted for regular SIP), FDs, and real estate. This early savings gave me a good corpus to start my business.

For my personal earnings, I still follow disciplined investment approach wherein I invest in Mutual fund SIPs with a long-term view, FDs for liquidity purposes and other specific investments for my daughter’s future education. In my investment philosophy I consider insurance and investment as two different objectives. Hence, I have taken required term plans, medical insurance etc.

Both in my business and in my personal life, I am in charge of my money. I know what I get, where I spend and where I invest. I keep educating myself on new investment options through newspapers or by talking to experts.

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