According to Mint reports, starting a business requires careful financial planning that begins with separating family and business needs. Rajshree Jhawar, QPFP®️ of ArthaSarathi, advises founders to prepare their finances first, emphasizing that while businesses need money, families need financial security. The expert recommends dividing money into three separate parts: a family safety fund, protected family goal savings, and a dedicated startup fund.
As reported by Mint, the first priority should be creating a family safety fund that covers all expenses including EMIs, school fees, insurance, medicines, and daily needs. The report suggests maintaining a larger reserve if planning to leave employment, as business income may remain uncertain during early months. Jhawar recommends saving regularly from salary, bonuses, or business surpluses if the launch is years away, while protecting money from market volatility as the launch approaches.
According to Mint reports, the startup fund should estimate business expenses for 12-18 months, including technology, salaries, rent, marketing, and professional fees. The fund should also include product development costs and daily operations expenses, with additional cushioning for potential cost increases and extended earning timelines. The expert emphasizes that founders' appetite for business risk may exceed their family's ability to handle financial stress.
As reported by Mint, before spending heavily, founders should validate whether customers will pay for their product or service through small trials rather than expensive launches. The report also covers startup registration requirements, including obtaining Digital Signature Certificates and completing SPICe+ Part A and B for company incorporation. For DPIIT startup recognition, businesses must be within ten years of registration, have turnover never exceeding ₹200 crore in any financial year, and demonstrate innovation and employment potential.
