Financial Planning before Starting Your Venture

Starting your own venture is an easy job but making it success is tough. It good to see young India is striving to achieve their dreams. Many people come up with an exciting idea and plan to start their own venture. One thing you need to ponder is how long can you sustain with your current bank balance. Many people start their venture and somewhere in middle of execution they run out of money and start looking for alternate job there by losing the focus on startup which will eventually end up in dead pool.
Proper planning is needed before starting a venture and not always everything goes according to the plan, you may start with one million Rupees and believe that you can sustain for 2 years but it can happen that you drain money within a year. So ideally you would love to have consistent flow of money even when you are working on your own startup. Here are some of our thoughts:

• Married people have an advantage if one of the partners is having a regular job. Its ideal for other partner to start a venture. Infosys was built this way.
• If you are in regular job then you can start working on your venture and quit the regular job only when needed. Basically it will be better to build atleast initial prototype before quitting the job and ofcourse it means burning mid-night oil. This will put you in better situation once you quit as you have better bank balance and also you can either get funded or make revenues soon as initial product is already built. Youtube was supposedly build by its founders while they were still working in regular jobs.
• If you think that building your product is time consuming then to keep money flowing in you can get into software services which will get you fast cash. But you need to focus on your core product and services is just a way for you to sustain.

All the above thoughts are valid as long as venture is not well funded.
Do let us know your thought on the same.