#5 MONEY MANAGEMENT TIPS FOR SMALL BUSINESSES

Spend Less On Capex - Tina Garg, Founder & CEO, Pink Lemonade Most entrepreneurs today spend heavily on Capex; investing in things such as fancy offices at the time of starting out and that is a big no-no. For example, instead of looking for a space in the heart of the city, rent spaces in slightly peripheral areas of the city. Secondly, instead of spending heavily on office furniture and interiors, use something that more plug-n-play -- free desks and chairs, and lighter pieces that you can move around and reposition. Use your design sensibility to make the place look funkier with cost-effective wallarts, installations, or maybe even a bright colored wall. Be A Cautious Spender - Manish Sinha, Founder, Skrilo Spending is easy. Spending on quality growth is not. Ask any start-up and I am confident that the foremost challenge in building a business is the balancing act of nurturing the growth wave and managing the cash burn. The pitfalls are all waiting to trip you over. Keep The Budget Small Initially - Kaushal Dugar, Founder and CEO, Teabox It is very usual for small business owners to waste a lot of their capital, in the starting of their venture. Every new strategy and idea that dwells in the respective market, attracts them and hence wasting of money can happen across. Some of the common issues that float first are - Office space, Marketing, staff, advertising, developing numerous business plans, unnecessary infrastructure and so on. Over the years, every business owner goes through the same and learns through each stage of his growth. Managing Working Capital - Satyam Kumar, CEO and Co-founder, Loantap In my opinion small business owners are not able to factor in efforts of collection (from debtors) and assign a cost to it. This also leads to under-pricing of interest cost (trade interest / discount). Thirdly, managing working capital is crucial. They very often mix personal finance, capital requirement and working capital. This leads to strain on working capital and results into costly purchases or higher delivery. .