Episode #61: CPA Talks About Personal & Business Finance Skills Every Business Owner Needs to Have

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

Have at least one year’s worth of your take home pay before starting business 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

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

Make use of networking.

Building relationship is always important in doing business

Maximize your business through social media