Founders of early-stage startups face many financial constraints at the onset. Mismanagement of personal finance is a common reason why many companies are forced to wind up their businesses. So, I'm here to help you out!
In this special episode, I covered the topic of 'Personal Finance for founders'
Takeaways from this episode:
- Why did I choose this particular topic? What are some financial constraints that early-stage startup founders are unaware of?
- How do early-stage startups protect against mismanagement of funds? How should one know which functions to not invest in that drain and might not yield a return?
- Is it acceptable for founders building a product to do a part-time job? When should a founder start drawing his/her monthly salary? What parameters should early-stage startups use to decide the right salary for a founder?
- Does getting a safe note affect valuation? How should one define what expenses should be expensed out from the company and what shall not? If a company is running on a freemium model, what is considered as traction for early-stage startups?
- How much personal funding too much risk for a founder? At what stage can a founder look at becoming an angel investor? What are the cardinal rules of saving and investing when you're an entrepreneur?
- What measures or precautions should a new or early-stage founder, with limited savings or personal funding to rely on, take? What are the common challenging monetary situations founders find themselves in?
