Securing Your Finances While Building a Company

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

India has a robust start-up culture. We have the third largest start-up ecosystem in the world. Becoming an entrepreneur requires a lot of courage and significant financial planning. Start-ups require a few years to turn a profit, during which time you need to secure your finances. Let’s look at how you can do that:

How to Secure Your Finances While Building a Company

• Build Your Savings

  If you’d like to start a business soon, you need enough capital to get you going. You can begin your journey with a savings plan like HDFC Life Sanchay Plus. The guaranteed return plan allows you to choose how and when you want to receive the maturity amount. You can opt for a lump-sum payout and use the amount to help fund your company. Your financial goals will dictate how long you should remain invested. A short-term savings plan might be enough to build capital for your company within the next few years. Additionally, these savings plans provide life insurance coverage, ensuring your family remains financially secure even if something happens to you.

• Separate Your Finances

  As an entrepreneur, you must keep your personal and business finances separate. Give yourself a salary or stipend and use the profits to grow your company. Since businesses go through cycles, you should have a retirement plan, even when things are going well. Put money away into a pension or annuity plan regularly to help secure your golden years. Remember, you cannot rely only on your business once you decide to take a step back from working full-time. If things slow down, you might have to make difficult adjustments in your 60s.

• Invest in Your Goals

  Once you get your company up and running, take a moment to think about your future. Do you have other financial goals you want to achieve? Your business could start turning a profit quickly, but sustaining that growth single-handedly can be tough. Initially, you may not earn enough to help you save up to purchase a home or a space for a bigger office. Instead of waiting for your business to meet your needs, you can take your finances into your own hands. Choose to invest in Unit-Linked Insurance Plans (ULIPs) like HDFC Life Click 2 Wealth. These policies offer both investment opportunities and an insurance component. They enable you to build a corpus to meet future financial goals. With a ULIP, you can choose how and where your money gets invested. A professional manages the fund for you, helping you meet your financial goals.

  Starting a business requires hard work and dedication. You must make intelligent decisions to safeguard your finances and your family’s future!

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