Financial Planning for Entrepreneurs: Importance and Benefits

What Is Financial Planning for Entrepreneurs?

What Is the Need for Financial Planning in Entrepreneurship?

What is meant by business financial planning for Entrepreneurs?

What Are the Financial Planning Tips for Entrepreneurs?

FAQs on Financial Planning for Entrepreneurs

What is the most crucial aspect of a financial plan for an entrepreneur? up-arrow

Budgeting is the most crucial first step in financial planning. Making a budget is quite simple; keeping one is more challenging. The important thing is to have the self-control to take the time and attention necessary to track and balance your expenses somehow.

How should entrepreneurs formulate a financial strategy? up-arrow

You must at least cover the following critical aspects:

  • Revenue
  • Price of the goods or services
  • Total profit or loss 
  • Operation expenses 
  • General costs 
  • Operating revenue

Do entrepreneurs pay income taxes? up-arrow

There is a Tax Exemption of 100% for the first five years if their annual revenue is less than ₹ 25 Crores. After that, however, the net profit is still subject to MAT (Minimum Alternate Tax).

What are the financial sources for entrepreneurs? up-arrow

The common sources of finances for entrepreneurs are:

  • Personal investment from own money or assets or collateral
  • Lent finances from partner, family or friends
  • Crowdfunding
  • Angel investors, etc.