So you want to build a start-up?

These are a few things you need to build a great start-up:

• Make sure that you work with great people
• Make something that people want
• Spend as little money as possible

Slowing down the entrepreneurial enthusiasm to protect your assets is one of the smartest (and perhaps hardest) things you can do.

Avoiding financial mistakes such as spending money faster than you make it, dipping into your personal wealth or not setting a financial framework for your venture may be a signal of poor thinking and poor decision making.

Your start-up may be born from a big idea but if you want it to survive, then you need a plan.

My advice is to become acquainted – intimately – with your finances. Partner up with a financial planner and a good accountant so that you know exactly where you are today, and so they can help you map out your financial strategy for personal and business growth.

When you are in the early stages, it is hard to project what funding you will have for your business over time. Working to a plan can support you in understanding your loan repayments to creditors, goals and opportunities.

Some of the pitfalls I’ve seen is people using capital from their home to support their entrepreneur goal. While this might pay off for some, it is a huge risk to your personal protection and life outside of your business venture.

Financial planning is the process of meeting your goals through the proper management of your finances. And in business, this is more true than ever.

Embracing strict financial discipline isn’t always easy however working with a team can help you not go under both professionally and personally.

7Wealth Pty Ltd ABN 44 609 210 246, is an Authorised Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licence 232706 and Australian Credit Licence 232706
This blog contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/ or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.