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Financial Tips for Start-ups and Enterprises

So, you have decided to start your own venture? Taking the first step towards building not just a company but a true industry leader value creator is challenging. Given the era of disruption and breakneck competition we live in, the challenge is even bigger. 

Of course, the most prudent thing to do would be to start with a vision and a plan inspired by some of the top business strategists worldwide, like Sanjiv Bajaj. Figuring out their journey to the top and how they are still leading with values will instill the right leadership and understanding in you as you look to create a  successful and reputed enterprise. Most importantly, you must learn how to manage an unprecedented volume of finances to benefit both you and your organization. 

This is where top-notch financial decision-making and processes come into play. So, what are some of the most valuable financial tips for start-ups and enterprises looking to transform the industry and excel in their business? Here is a list of five of them. 

  1. Define your financial goals 

You cannot be a true value creator if you do not know how to derive financial value from your business investment. To accomplish the same, it is essential to have a clear picture of your financial end goals and how you are going to achieve them. Proper planning and creating a roadmap are vital here. Additionally, top business strategists set smart financial goals when starting up – neither too unrealistic nor too low. Thus, your goals should be specific, flexible, attainable, time-based, and measurable to track your growth from time to time.

  1. Minimize your fixed expenses 

A financial value creator realizes the value of fixed capital on hand. Fixed expenses are inevitably high, especially when setting up an enterprise. This is where you must learn to monitor and control them and prevent splurging or unnecessary costs prudently. Your expense sheet will illuminate you on the most necessary expenses so that you can save up on other things and invest only in the growth-oriented areas of your start-up.

  1. Comply with all the financial regulations 

When you are leading with values at a new organization, you have to ensure that your business and its financial undertakings stay on the right side of the law. This is all the more important if you are trying to set up a multi-region or multi-national business entity – with all locations having their financial regulation and compliance requirements. Operating within financial regulations will enable your business to avoid serious legal repercussions in the future.

  1. Keep an eye on multi-location cash flow 

Did you know that 90% of all start-ups fail – with financial problems being the reason for 16% of those to fail? That may sound like a very pessimistic statistic, but it is a huge fact. One of the reasons for the financial failures of start-ups is often mismanaged multi-location cash flow. As a progressive CEO, it is reasonable that you might want to expand your enterprise’s footprint and geographic spread. However, failure to keep an eye on cash flows will lead to overspending, which can be catastrophic in the long run.  

  1. Ensure that your creditworthiness remains impeccable 

Lastly, as an aspiring value creator, you will want to secure funding and loans for your enterprise from time to time. This is where having a robust credit rating will indicate your excellence in paying off loans, thus attracting potential investors. Hence, it is important not to default on any business loans and keep your balances in check.

But merely setting up an efficient financial workflow and following the above-mentioned tips is not enough. A change maker prizes financial leadership above all else. After all, it is you whose decisions will have the ultimate impact on the financial processes and finance streamlining in your start-up or enterprise. 

Fintech leader Sanjiv Bajaj – the Chairman and Managing Director of Bajaj Finserv– is a good example. As an industry leader and value creator, Sanjiv Bajaj has been hailed as one of India’s top business strategists in the financial industry. His future-focused, people-centric principles and business values have enabled the Bajaj Finserv Companies to stake a huge claim as India’s leading financial services provider. And all of that growth stems from having financial leadership principles that every aspiring start-up and entrepreneur must inculcate. Here are 6 of them to help you:

  1. Put the right team in place with a shared vision and goal

Build a great team with the right people and with the talent to lead a business as if they are the owners. By empowering such people, you will have a better grasp of your start-up’s financial vision and growth and will gain a crucial edge during pivotal moments.

  1. Find the mentors you need 

Despite how talented you are, as a start-up entrepreneur, you should always look to learn from the best. Find mentors and bring them into your company so that they can add their valuable inputs, learnings, and experience to improve your enterprise’s financial decision-making.

  1. Establish your expertise 

Don’t be a generalist and do-it-all. To accelerate financial growth, establish your start-up’s expertise in a particular niche and disrupt it as much as possible. 

  1. Form good stable relationships 

When leading with values, keep humility, transparency, openness, and communication at the top. These values will help you synergize with your team and inspire them to deliver true growth. 

  1. Enthusiasm is great but proceeds with caution 

Avoid getting comfortable in any new or past successes. Complacency kills growth, so celebrate your win quickly and look toward the future. 

  1. Be patient and have fun 

Always remain true to your long-term financial vision. Don’t let new wins or short-term opportunities distract you from your original goals. 

Conclusion

Finance is at the heart of a successful start-up and enterprise. If you can master your capital, cashflows, creditworthiness and investments well while inculcating powerful visionary leadership values, you stand to make yours a rare start-up that goes on to become successful, sustainable and profitable. 

Thousands of start-ups get established and fail every year. So, how can you do it differently and achieve the success you have always craved for? The answer lies in ensuring a strong financial base for your enterprise. To do that, you will have to take a leaf out of the book of some of the top business strategists and ensure a few processes are established in your start-up. Not only that, but you should also learn to lead with values and become an inspiring financial leader.

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