We have many inspiring stories that have given birth to budding entrepreneurs and in turn, have inspired a generation of young minds to solve complex practical issues of life and thus create a living for self and also employment for society.
Startup India is also a govt initiative to promote and nurture entrepreneurship across the country. As per Startup India Program, the main focus is to promote bank financing and encourage startups with newer business ideas and thus help the Govt in the moto of job creation.
Therefore Start-ups not only cross new horizons on their business but also need to keep the requirements of other stakeholders like Govt. Compliance, Banks, FI’s, Auditors, Investors like HNI, PE or VC’S.
Again, Finance is often ignored in most of the start-ups as the focus is always on getting business, model validation & tech enablement.
Its often seen that there is a huge chunk of money remaining either unutilized or being spent on unwanted penalties which are often overlooked within the given due dates and compliance calendar.
Basic Requirements mainly stems around say accounting, finance & compliance on a day to day basis
Other growing organizations may have constant requirements for Cash Flow Management & Project Management
Again some established setups may require a complete control on Inventory Management or a constant watch on Working Capital Requirements
Again, Start-ups go through the cycles of their own, in terms of starting high and growing multiple times and again a few of them ending with no salaries to pay, failing on compliances.
Often the business managers depend on excels and all calculations are done with no focus on actual tax filings, regulations or cash management.
Therefore, no matter whatever it is, Budding entrepreneurs are always on their toes to keep up the pace with compliance n certification.
Hence the Finance function should be taken perhaps a bit on individual perspective
Idea is to start small and simple with minimal compliance and then build big as per customer profile, business operations, nature of transactions, etc.
Sometimes projects are it with Govt or some large corporate (domestic or global )drives the registration process or other times it is decided by the Investors and their involvement including entry-exit criteria.
We @ Certicom suggest starting lean with minimal compliance & then build as per Growth path as the transition is handhold-ed to the Directors and partners with end to end support.
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