But what about the finances for your business? You will need that initial investment for garments, hiring tailors to work with you and more. If the business is yours, you can't really leave the money details to your husband or even a financial advisor.
Here is what you need to know about the financial aspects of starting your own business.
Never Mix Business and Pleasure
The first and most important thing is to keep your business account separate from your personal account. No matter how small your business is, you can never mix the two.
Maintain a current account, which is meant for people who run their own businesses. You can deposit or withdraw any amount of money at any time. Therefore, the account is very convenient for your business.
If you run your own boutique or other business, here's what you need to remember. |
Running a Successful BusinessMake use of the bank with which you have your current account. You can give the bank standing instructions to make regular payments rent, taxes, insurance etc. provided you have enough balance in your account to do so. This way you don't have too much running around to do.
But beware of additional charges! Read more about this in How Banks Make You Poor. |
Working with Overdraft
Once you are running a full-fledged business where you are making approximately Rs.80,000 to Rs.1 lakh a year, you can have a current account with overdraft. This allows you make further investment into your business.
In most cases, you can get credit up to 25% of your net annual income. The minimum amount that you can get on loan is about Rs.10,000 and the maximum is about 2 lakh. But these figures differ from one bank to the next. Also the rate of interest you have to pay will vary anywhere from 12.5% p.a. to 14.5% p.a. depending on the bank.
The interest is usually charged only on the amount and for the time utilised.
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