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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 -
  1. Those who think that financing is not their kind of thing
  2. Those who are scared of accounting  and finance
  3. Those who are keen but new to field
Following 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.



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