Financial Tips To Becoming A Strong Female Entrepreneur

06 March, 2023

The number of women-owned businesses has increased significantly over the last decade. Female entrepreneurs are in a league of their own, and their growth has created a ripple effect in society in terms of raising job opportunities. Women are breaking the glass ceiling and making impressive strides in the competitive world of business. Fuelled with ambition, curiosity, and a sound understanding of finances, women entrepreneurs overcome prejudice and make a mark.

If you are a budding entrepreneur, besides being confident and motivated, you must be armed with sound financial skills in order to make smart business decisions and achieve long-lasting financial security. And, what better day than International Women's Day to kickstart your journey of becoming the boss lady that you've always aspired to be.

Tips for managing your finances successfully as an entrepreneur:

1. Establish an emergency fund beyond the recommended amount

Traditionally, it is advised to have an emergency fund that is amounting to at least six months’ worth your expenses. However, as an entrepreneur, the share for your emergency fund must be significantly higher than that. Target an emergency fund that equals 12-24 months’ worth of your non-discretionary spends. It is important to remember that you must establish this fund before you commence your entrepreneurial experiments.

2. Focus on your personal goals

Once you’ve taken the plunge into entrepreneurship, it is easy to lose sight of your personal financial goals. Dedication to your work and the desire to succeed might tempt you to throw caution to the winds by liquidating your savings, but this is something you should reconsider. Separating your personal goals and funds from your business is essential to maintain a work-life balance and financial stability.

3. Adequate Insurance for your business

Having insurance for your business will act as a form of risk management to hedge against potential financial loss uncertainties. Furthermore, having your business insured does more than just protecting it. Having the right policies gives you credibility amongst your customers and contractors alike and clarifies communication about providing proper protection. If your business is at the cusp of growing, it can also help you attract new employees and retain current ones.

4. Understand your taxes

To effectively plan your taxes, you need to know the taxes you're paying and the exemptions you can claim. For instance, Section 80C of the Income Tax Act extends a deduction of Rs 1,50,000 on Life Insurance, PPF, Stamp Duty, five-year bank Fixed Deposits and more. 
Every entrepreneur, new and experienced, must be aware of various tax provisions extended by the government. Knowing about the tax provisions and updated government norms will enable you to make well-informed decisions and avoid penalties.

5. Get the proper funding for your business

Having unique business ideas is exciting. But it is followed by a strenuous process of pushing that idea out in the world, which means procuring the right resources, getting an office space, figuring out marketing strategies and more. All this requires a steady supply of funds.

If you are just starting out - opt for a gold loan

You can take care of your business’ early requirements by pledging your gold and availing of an HDFC Bank Gold Loan. With minimal documentation and efficient disbursal, a Gold Loan is a smooth solution to get started. Whether you need a term loan, overdraft, or EMI-based loan, HDFC Bank offers you competitive interest rates and flexible repayment options that don’t burden your entrepreneurial dreams.

For small business needs - opt for a Credit Card loan

Fuel your entrepreneur vision by going for a pre-approved Insta Loan against your HDFC Bank Credit Card at extremely attractive interest rates. Forget about cumbersome documentation or lengthy processes and opt for a loan against your credit limit that can also be availed at a convenient EMI.

To expand your business - opt for a Business Loan

There’s only so much a company can grow with limited funds. Applying for a Business Loan with HDFC Bank is easy and efficient. Do away with the need for extensive documentation and get a collateral-free loan up to Rs 75 lakh* at reasonable interest rates. If you need any help making the right decision, you can always reach out ti your RM or drop by into your nearest branch.

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​​​​​​​*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Gold and Business Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.