Here are some financial tips for young entrepreneurs by Pavan Reddy Appakonda

New Delhi: Beginning a journey at a young age is never an easy task. Hurdles, barriers, troubles, and hardships all come together, except for those who are fortunate enough to have people come to their aid, handing them every possible solution on a silver platter. However, for those who are not lucky enough to embark on their journeys, all they can do is gather the courage to write a future for themselves. This is undoubtedly true for Pavan Reddy Appakonda, a young and dynamic entrepreneur, software engineer, and investor.

Pavan said I applaud you if you are a young entrepreneur or start-up. Creating a firm is definitely one of the most challenging things I've attempted. I quit my job a few years ago to pursue my entrepreneurial goals and have learned a lot along the road. In this article, I'll share some financial lessons I've learned while beginning my own business, hoping that you don't make the same financial mistakes that many new entrepreneurs do.

Maintain Individual Financial Objectives

It is critical to developing a habit of saving and investing consistently to achieve your personal financial goals. These goals could include purchasing a car or a house, saving for a wedding or your children's education, and so on. You may not have a consistent income during the early phases of your firm or freelance work, but that shouldn't stop you from investing your money whenever it becomes available to you.

My view is that it is acceptable to begin modest, with as little as 5000 rupees each month; the goal is to maintain momentum so that you may progressively grow this amount over time and establish a corpus sufficient to meet your financial goals.

Be prepared for the unexpected.

It's impossible to predict what will bring down a new business. Still, it might be anything like a critical member of staff may be required to leave for an extended period, or your most significant client may lose interest in working with you.

Because of this, you must contemplate what you would do if something went awry before you begin. It doesn't matter if it's a financial backup or anything; being ready will help your firm survive.

Maintain a record of all transactions.

Nothing is more frustrating than a business with no idea where its money comes from or where it is going. By establishing the infrastructure necessary to record transactions, you may quickly defend yourself if someone attempts to claim they do not owe you money or that you did not pay them.

Create and Maintain a Budget

It is prudent to establish a budget and, more importantly, to adhere to it. Separate accounts for the company and personal expenses can assist you in this endeavour. You won't accurately estimate how much money your firm brings in or how much it requires surviving if your personal and business spending is mixed.

Be Careful With Loans

You should avoid falling into the debt trap and only take out loans that are absolutely necessary for the operation of your business; avoid taking out loans that don't directly or indirectly increase your revenue. Corona has already taught us the value of living a thrifty and debt-free existence. 

Control Taxes

Entrepreneurs must intelligently manage their taxes. Numerous measures exist to assist enterprises and freelancers in submitting income taxes and saving money on taxes. Being aware of these provisions and fully utilising them within the confines of the law can go a long way toward achieving success.

Future Planning

Retirement planning is a critical component of financial health. Because entrepreneurs would not have access to a pension, saving for retirement becomes even more critical.

Financial Self-Control

It is vital to living life to the fullest extent possible, but this must be done with discipline. While being responsible with money is usually a good idea, this does not exclude an entrepreneur from spending. Entrepreneurs must live a life of financial discipline.