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FINANCIAL PLANNING TIPS FOR FEMALE ENTREPRENEURS

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If you fail to plan, you plan to fail. Here are some financial tips for female entrepreneurs:    .

1. Reduce spending & slash your liabilities
When you were assured of a fixed salary, you could even have afforded to spend more than you had in your account, with the hope of paying it off when your next salary hit your account (as ill-advised as that approach is!). As an entrepreneur, this is nothing short of financial suicide. Chances are that you’ll be financially stretched for the first couple of years of longer (depending upon the kind of business you’re into). Take an impartial look at your monthly expenses and eliminate the ones you deem ‘not very important’. It’s going to hurt, but not more than running out of money and not having enough to pay the bills for your basic amenities.

2. Don’t lose sight of your personal goals
Amidst the inevitable roller coaster ride that is entrepreneurship, it’s deceptively easy to lose sight of the personal financial goals you set for yourself and your family. Your raw passion and desire to succeed may entice you to throw caution to the winds and liquidate your hard-saved goal oriented funds, but that’s something you must not do. Stay the course and always separate personal from business.

3. Take out adequate Life Insurance a few months before starting out
Your decision to become an entrepreneur may affect your standing with life insurance companies, as your future income (and hence your ability to pay your premiums on time) might be perceived to be irregular. Take out a good term life insurance policy a few months before starting out, to cover your dependents (if any) adequately. Ensure that you service your premiums on time and do not let the policy lapse, as this might lead to the requirement for a fresh underwriting cycle.

XOXO

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