ALERT for women who want to start business! How to do financial planning- Check TOP TIPS here

To start a new business, it is necessary to have the right planning and the right financial information. For women starting a new business can be a challenging task as they will have to take care of the business as well as the household.

In such a situation, business planning and financial planning for businesswomen are slightly different from others. Here are certain tips which you can consider.

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Financial planning

Along with business expenses monitor the household expenses as well. Focus on the areas where you are spending and also on saving money. You can keep a money diary as it will enable you to keep an eye on the expenditure. Avoid unnecessary use of credit cards.

Business loan

A good credit score is essential for a business loan therefore you need to focus on improving the same. Also, you are advised to pay bills on time, fulfil financial responsibilities, avoid taking unsecured loans for business and limit the use of credit cards.

Business loans can be taken from banks and NBFCs. There are several special business loan schemes for women offered by the banks.

Emergency fund

It is important to have funds for sudden and emergency use. In such a situation, maintaining an emergency fund is beneficial.

Retirement planning

Retirement planning is an important part of financial planning. Do not invest retirement savings in business under any circumstances. Continue investing for retirement and other financial goals as well.

Keep business and personal expenses separate

Keep both business and personal expenses separate. You can do so by keeping two separate bank accounts for personal and business finances.

Investment

If you make a good profit from the business, then instead of keeping it in your bank account you can invest the money in liquid funds. These extra incomes from investment can be utilized for other needs.

Also, it is important to maintain diversity in your portfolio therefore try investing in equity, mutual funds, PPF, etc. Diversification in investment helps in reducing risk.

You are suggested to take advice from financial planners for better planning and guidance regarding spending and investment.