From emergency fund, business loans to investments, major tips for women who want to start business

Starting a business is no walk in the park. The amount of time, money, and risk involved in it depends on the business idea and planning. It requires a proper plan and the right financial information. It is especially not easy for a woman to start a new business as they have to take care of the business as well as the household.

But, on another side, we have women like Vandana Luthra (founder of VLCC) and Ritu Kumar (fashion designer) who have been playing a vital role in the growth of the Indian economy.

From such successful women entrepreneurs, we learn that to start any business, it’s important to stick to your business plan, make and respect your budget, dedicate time to developing your business, and meet the goals you’ve set for yourself.
Here are few tips for women to start a business.

Financial planning

Monitor the household expenses along with business expenses. Focus on the areas where you can save money. Also, keep a track of spending. You can use a money diary for it as it will enable you to keep an eye on the expenditure. Avoid using credit cards.

Business loan

You are advised to pay bills on time, fulfill financial responsibilities, avoid taking unsecured loans for business and limit the use of credit cards. A good credit score is important for a business loan. Business loans can be taken from banks and NBFCs. There are several special business loan schemes for women offered by the banks.

Emergency fund
It is important to maintain emergency funds for sudden and emergency use.

Retirement planning

Retirement planning is a crucial part of financial planning. Do not invest retirement savings in business under any circumstances. Continue investing for retirement and other financial goals as well.

Keep business and personal expenses separate

Never mix business and personal expenses. You can keep two separate bank accounts for personal and business finances.


If you make a good profit from the business, then instead of keeping it in your bank account you can invest the money in liquid funds. These extra incomes from investment can be utilized for other needs. To reduce risks, it is important to maintain diversity in your portfolio therefore try investing in equity, mutual funds, PPF, etc.

Also, we will suggest you take advice from financial planners for better preparation and guidance regarding spending and investment.

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