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Showing posts from May, 2014

2 Rules of Efficient Financial Management for Startups

Every startup in its initial days is always running tight on finances. In such times bad financial decisions can really jeopardize the startup, leading it to complete shut down. I recently finished reading a very nice book,'Romancing the Balance Sheet', by Anil Lamba.Its a book for 3 types of people -
Those who think that financing is not their kind of thingThose who are scared of accounting  and financeThose who are keen but new to fieldFollowing are the two golden rules that can save a lot of your money which otherwise will get wasted due to bad financial decisions.
Rule Number 1: Never invest your money without ensuring that the assets you acquire can generate a return which is atleast equal to the cost of your capital. 
Rule Number 2: Invest your money in such a way that the assets will generate an inflow of funds before the liabilities demand an outflow.

Top 10 Suggestions for a Startup Founder

Recently , I was talking with one of entrepreneur who has successfully set up his start-up organization. Here's a list of suggestions he told me , that every entrepreneur should do.
1) Every startup founder should have a vision. This helps him to take decisions in moments of crisis.

2) Always try to solve a problem which is hurting the most to a particular group of people. The bigger the problem you will try to solve, the more will be your chances of success. The problem must be the most hurting problem for the people for whom we are building the product. This ensures that people will be ready to pay for our products once it is built.

3) Once you are sure about that the problem is worth solving, create business plan showing your revenue generation, distribution channels, customer segments and your value propositions.

4) Never build the whole product at one go. First build the MVP, Minimum Valuable Product, and take it to customer. See their response. This will help you to make decisi…