Thursday, May 14, 2020

Economic Cost of Hate

Economic Cost of Hate

India has seen gradual increase of hate against its Muslim Minority. This gradual increase of last 6 years has suddenly spiked in last 8 months, which is noticed by global human rights groups and Governments.

The countries and international organizations has started discussions and so are governments. This discussion has now coming to the point it will start damaging India’s Economy and will have serious implications.

US Congress has already issued statement and so is USCIRF and Congress Members, and Bernie Sanders has raised serious questions on India’s handling of Racism, Hate and Violence against its minorities.

UK Parliament has already discussed the matter.

EU Parliament will take up the issue once opened. It has 3 resolutions on the matter.  

OIC – Organization of Islamic Cooperation is world’s second biggest group of countries has already issued statements and requested government of India, to protect the life and properties of Muslims.

GCC – Gulf Cooperative Council is world’s smallest but richest group with substantial exposure and relations with India and with very good say across the worlds, is started serious talking about Islamophobia and Hate in India. This will have serious economic impact.

US, Europe and UK, number of Muslim countries has echoed their concern for the Hate Crime and Islamophobia in India.


Notably among them are Turkey, Iran, Malaysia, Indonesia has come out with their statements.

The real question is How is the cost or economic impact of all this hate mongering.

I will start with GCC.

1.      GCC hosts 9 million Indian – This number can vary between 9 million and 12 million depending upon how you view or calculate.

2.      The total of 79 billion USD, 55 Billion comes from GCC countries or 70%, more importantly India is single largest recipient of foreign remittances.

Among countries, the top remittance recipients were India with $79 billion, followed by China ($67 billion), Mexico ($36 billion), the Philippines ($34 billion), and Egypt ($29 billion). World Bank

3.      More than 80% Indian working in GCC are low wage earners or labor which are easy to replace.

4.      India’s Export – Fresh Vegetables and Meat

5.      GCC is single biggest market for Fresh Vegetables, and Fruits, Agriculture Products.

6.      GCC is single biggest market for Fresh Meat Exports – Caracas – Goat and Sheep

7.      GCC is single biggest market for Beef Exports.

8.      GCC is single biggest trading partner for Agro Commodities.

GCC countries account for 15 percent of India’s total import and 12 percent of the country’s total export basket in value terms.

Among the GCC countries, UAE accounted for the major chunk of India’s exports and imports with $30.08 billion and $29.77 billion respectively in FY19.


This is despite a negative growth in both imports and exports of gems and jewelry, a major item in the product basket between India and UAE.  India’s imports of gems and jewelry from UAE have seen a decline of 13 percent, while its exports of these products to UAE have fallen by 3 percent in FY19 over the previous fiscal.

UAE accounts for 9 percent of India’s total export basket and 5.80 percent of India’s import basket by value.

UAE is the major destination for India’s jewelry exports, accounting for about 80 percent of India’s exports.

Energy, Expatriates and Economy

Indian National make up the Gulf states’ largest expatriate community, with an estimated 9.6 million Indian nationals living and working in the region; especially in Saudi Arabia (2.8 million) and the UAE (2.6 million.

The GCC is India’s largest regional-bloc trading partner, which accounted for $104 billion of trade in 2017–18, nearly a 7 per cent increase from $97 billion the previous year. This is higher than both India–ASEAN trade ($81 billion) and India–EU trade ($102 billion) in 2017-18. Two of India’s top five trading partners, the UAE and Saudi Arabia, are from the Gulf. The GCC also provided over $55 billion in foreign-exchange remittances from Indian expatriates in 2017, accounting for over 70 per cent of India’s total.

The total bilateral trade between the GCC and India was estimated at US$121.34 billion ($203 billion) in 2018-19. The UAE is estimated to be India’s third-largest partner with trade in 2018-19 estimated at nearly US$60 billion ($100 billion), while Saudi Arabia is India’s fourth-largest trading partner, with trade in 2018-19 estimated at over US$34billion ($57 billion).

They aim to increase bilateral trade by 60 per cent over the next five years and have set a target of $75 billion for UAE investments into India’s infrastructure development, spanning ports, airports, highways and construction, as well as petrochemical projects.

India expected to attract large-scale investment from the GCC to India, following the recent announcement of the development of a $44 billion oil refinery to be built by Abu Dhabi National Oil Company (ADNOC), Saudi Aramco and Indian counterparts.
The announcement comes a few months after Emirates Group announced a $4.23 billion (INR300 billion) aircraft maintenance, repair and overhaul (MRO) project in Andhra Pradesh in February this year.
Aramco is also in talks with Reliance Industries Limited  to purchase a 20 per cent stake in its oil to chemical business, which is estimated at US$75 billion ($125.5 billion).

The GCC has also invested in developing India’s energy infrastructure. In 2019, the Saudi Ambassador to India stated that Riyadh wished to invest US$100 billion ($166 billion) in India

Foreign Direct Investment (FDI) in India increased to $61.96 billion in 2017-18, according to Indian Government’s Department of Industrial Policy and Promotion (DIPP). Total FDI reached $ 61.96 billion in the last four years, it said.

India: An investment gateway

Yusuffali predicts that an investment to the tune of $150 billion will flow into retail, aviation, tourism and manufacturing sectors from Gulf countries.

This will have a mutual benefit for both the countries as India faces 30 per cent wastage in the Indian farm sector due to bottlenecks in storage, packaging and transportation, and investment by Saudi Arabia would benefit both the countries.





Why GCC Matters

And with an average GDP per capita of US $ 61,559 in terms of purchasing parity, most GCC nation rank in worlds top ten richest countries.


Indonesia and Malaysia account for 85% of the world's palm oil output while India is the biggest buyer of edible oil.

Indonesian crude palm oil has sold at a premium to Malaysian oil since India this month placed curbs on imports of refined palm oil.
The trade ministers of India and Indonesia, which want to more than double their bilateral trade to $50 billion by 2025, met in Davos on Thursday and agreed to fast-forward trade between them, one of the informed sources
An Indian government document, reviewed by Reuters, said that Indonesia had "informally agreed" to double the annual quota for Indian bovine meat exports to 200,000 tonnes.
Indian-Indonesian trade was worth $21.2 billion in the  2019.

Indonesia imported 94,500 tonnes of Indian buffalo meat worth $323 million in the 2018/19 fiscal year. It is the third biggest buyer of Indian buffalo meat after Vietnam and Malaysia.

India’s Tourism Sector

The Foreign Tourist Arrivals in India is small compared to global standards. The lack of enough and quality infrastructure is one reason, the culture and social environment is second factor.

The arrivals are divided as Foreign and NRI, we will discuss only Foreign Arrivals.

The single largest arrival is Bangladesh Nationals. Then come US and Europe. The Bangladesh alone constitute more than 20% of total arrivals, USA and Europe together constitute another 25%.  The remaining 55% is scattered over countries. North Africa, GCC and Malaysia together is above 10%. Other Muslim Countries has another 3% arrivals in India.

Tourism is one of very important employment sector for India. The present environment of hate will directly affect sentiments of Tourist and their arrivals. Not only the Muslims but all arrivals will be affected.

We see more than 50% reduction in Tourist arrivals from Muslim World to India. The NRI arrival will also be heavily affected because of Job loss.

The arrivals from USA and Europe will be affected by 15%, as sentiments go negative. This will affect India’s direct foreign currency income and employment.


Services Sector – India’s services sector is more dependent on USA and Europe. IT, ITES are mostly catered to developed world. In last few years, there is substantial growth and Opportunities are generated from GCC. This growth is steady and remain double the average growth of India’s services sector exports. This nascent sector will face challenge to survive in GCC, North Africa and Malaysia, Indonesia.

The Effect of Hate on FDI and PPP and other projects

As Result of Increase of Hate in India, India will see substantial losses in terms of financial loss. Remittance will be down by 30% or 17 Billion Dollar, direct commercial loss or loss of business will be 55 billion and overall Indian economy will be take hit of 1.5 percent.


The sentiment in GCC particularly and worldwide in general will be negatively impacted. The investors look for safety of their amount and social conditioning. Peace is most important to drive growth anywhere in the world. Without peace and harmony, it is impossible to find growth and development. Hate will not only drag down the growth of particular community but it will have drag down effect on everyone. These negative sentiments will persist for the long time. GCC human rights activist and global Human Rights activist particularly in EU and USA will have substantial impact on FDI in India.


Data Source - 

India Tourism Statistics 2019 Ministry of Tourism Government of India

Annual Report 2018 -2019 Department of Commerce Government of India

GCC Stat

World Bank Remittances Report

IMF Economic Review

Venture Art Economic Projections


Tuesday, October 1, 2019

How incubators are disrupting the Indian agri-tech startup landscape.

Technology has changed the way that businesses behave today. The Indian economy is home to over 56,000 startups with about 450 plus in the agri-tech space alone. There are government regulations and incentives to help these startups grow and sustain, but the dynamics are skewed towards the incubators and accelerators who drive exponential growth.

The agri-tech segment is growing at a phenomenal rate of 25% year-on-year. The fund inflow has been over $250 million in 2019 alone. The future is bright, and experts view the agri-tech innovation industry as the primary driver of agricultural economics by 2020. The multi-billion sector has a massive scope to change the face of the Indian economy. Incubators are not only funding, but also mentoring, and guiding the very fragmented businesses leading towards a cohesive structure.

The agriculture industry is fragmented and unorganized in India. There is a need to harness the potential that the sector offers to harness the growth and make it sustainable. The need for technological innovation to find solutions to everyday problems is the need of the hour. Frugal innovations in the agri-sector will help the economy grow in the long run.

The pressure points plaguing the agriculture industry is the dearth of market linkages, services, and networks that can be tapped as a cohesive whole. The experience of incubators have helped agri-tech startups to channel funds, groom entrepreneurs, provide on-ground pilot testing facility, and maximize business opportunities. The boot camp activities of the incubators facilitate the back-links to market, help in driving networks to reduce wastage, create sustainable logistics systems to promote marketing initiatives, and help agri-tech startups scale up.

The formal incubator-accelerator organizations have disrupted the Indian agricultural startup scenario over the past a few years. Incubators seed the potentially disruptive ideas of the agri-preneur intending to create a viable business model. The startups gain co-working space, structured funding, mentor-ship in the technology and financial domains as well as in-depth knowledge of the industry itself. Incubators also help to mitigate the challenges and risks in the delicate scale-up process.

Incubation is the bedrock of innovative disruption. The idea is to foster growth and ultimately commercialization of the innovation. The incubators have stepped into the gap between a good idea to a viable business. They provide necessary infrastructure, feedback, and correction advice to firm up the innovation. The hand-holding process includes mentor-ship, identification, and firming up of collaborations for the agri-preneur. Intellectual resources and advice can make or break the pattern of growth and scalability.

The role of incubators is crucial in the wider business ecosystem in India. They are integral to the shaping up process of the Indian startup network. The role of the incubator is well beyond the corporate startup office. They add value to the entire business-scape of the start-up community. The exponential growth of India as a start-up hub has opened up the potential of incubators to nurture creativity and disrupt the way traditional business works. The mentoring of the start-up will help agri-ventures transform and catapult itself to the next level.

Agri-tech startups have a vast scope to enhance livelihood opportunities in rural India. Intervention in sustainable agricultural processes, livestock management, skill development, market linkages, effective network of logistics infrastructure, sustainable pricing conventions, and robust market linkages will contribute tremendously to rural economic development and food security goals in the country. Incubators are set to disrupt the Indian startup landscape in a big way.

Disclaimer: Following article source is ET

Tuesday, October 4, 2016

Is there really a way of failure-proofing something as a startup?

Corporates today are not worried about what the other corporates are doing. They are instead worried about what startups are building in garages and hence, after trying to do everything to keep up with their pace, are now funding them.

In the highly interactive session, Stressed on what startups should focus on and where they are going wrong.

Customer co-creation

“Instead of focusing solely on the product, startups should think about doing other fundamental things right from the idea stage. This can be summarised in six points, namely co-creation, pricing relevance, ease of use, market acceptance, identifying customer needs, and tech-friendliness.”

Startups know what they are building and desperately want to sell it but what they need to know before anything else is why they made it. Believing in why you did what you did is pivotal.

Products have rationales and customers have emotions; tap that! If you think rationally in business, you will have a hundred people doing the same thing, but if you capitalise on emotion, you will be different.

If you are building a startup, there are certain questions which you need to ask yourself. They include:

* What need are you addressing?
* Are you satisfying a REAL need?
* Is your product impacting the lives of your customers?
* What is your competition doing?

You cannot stop working, Every day is a new day.

Investor Co-creation

Most startups toil for years together, build a product, and then begin hunting for investors. This is a flawed method.

“You know how important an investor is to your startup. So, why wait for him? Involve investors from the idea stage so they know what you are doing from the start. People like to do business with who they are familiar with. Also, interacting with investors from the start gives you a lot of additional insight on what’s happening in the ecosystem and lets you understand what exactly they are looking for.

Traction: This is not about how much you have made but how much you are likely to make.

Mentor creation: People who can bridge the gap between customers and investors with their experience.

Their own passion is important, but obsession is not. Understand, if it has to be a commercial enterprise, it has to solve the problem of customers.

But what after a successful launch and a few great years of operations? How does a startup continually do well?

It’s not about getting it right at once. As long as people keep evolving, you cannot stop working. Every day is a new day.

While we are all aiming at achieving success and avoiding failure, They are both results that are not under our control. However, what we can control is our actions, and the more the precision with which we carry them out, the further we go in avoiding failure.

Disclaimer: - Following article come from YourStory

Sunday, September 25, 2016

Startups, guide your way to cloud.

Isn’t this such an exciting time, when so much is happening in the startup arena? Technology-based startups bet on their ideas and work towards giving life to their dreams over a period. Ideas which are given shape via technology and placed on the tarmac as a pilot roll-out are tested for their relevance and acceptance from the consumers and businesses. This is where the idea of a public cloud comes across as a boon for tech startups that are either testing the waters with their beta products or productionising their solutions. A public cloud offers unprecedented compute and is the perfect platform for startups to take off. It is just not about compute boxes but capitalising on unique offerings that matter the most to them from a solution standpoint.

At the time when these pilots are rolled out (with ‘beta’ or ‘trial run’ tags), there is no sense of scale or directional indicators on compute capacity. Some may invest in market studies leading up to forming an opinion on the way forward, but at best they are ballpark and based on one’s awareness of the domain. Often, the question is about the pilot creation, where the pilot travels a certain distance, but is now being challenged for it longevity while the business leaps to garner bigger deals. This is the time and phase where startups go back to the drawing board, to assess how they can stand up to the upside they are witnessing on their businesses.

Getting access to public cloud is comparable to getting access to a theme park with unlimited rides. But it all depends on how they are utilised and perceptions are formed on the basis of ones’ tryst with specific rides.  Startups look for quick ways to deploy and get their solutions/services up and running. This article presents some of the field learnings from a technology standpoint in the form of recommended practices startups should keep in mind when they begin their journey in the cloud.

* Adapt a universal component designThis is one area architects and designers need to think through. A typical approach taken by a startup is not get tied to a specific platform. Depending on factors indicated under #4 (‘Cloud credit management and cost optimisation’) below, you tend to move your workloads from one cloud platform to another. Migrations or move-overs are not easy and come with certain costs (time and effort). At times, having used native services on specific cloud platforms might make the movement harder. If you have taken a stance not to use platform native capabilities, it might work in your favour during migrations, but at the cost of not capitalising on the power of cloud beyond pure boxes (hosting workloads in VMs).

This is where the need to make your workloads universal comes in handy. What does ‘universal’ mean in this context? It is about realising the core capability (main business function) by way of using certain peripheral native services (storage, integration, and data services) to complement the core functionality. When you take this approach, the core remains independent of a cloud platform and it can only be called complete by leveraging peripheral services. So when you move from one cloud platform to another, you take the core, which is at the heart of your solution, and wire it up with required peripheral (managed) services. This is true heterogeneity in the context of public cloud. In hindsight, it is also important to establish basic know-how of at least two cloud platforms to realise this model.

DayDream Makes Your Mind's Workout, So Dream And Come To Success

Time to market — building vs buying (adopt managed services)

At times, it is fashionable to say that we have built it all in-house instead of using any readily available solutions. While it is important to demonstrate technical prowess leading to intellectual property creation, you have to balance it to address ‘time to market’ (TTM). TTM is very important for tech startups in view of competition and this is where ‘Managed Services’ or ‘PaaS’ comes in handy. Why waste time when someone has already done it the hard way? You are better off using it and moving on with stuff which is far more important to your business than going the route of reinventing the wheel.

Don’t get bogged down and stay on the trail of demonstrating technical prowess, but demonstrate agility by using proven frameworks and softwares that are out there. PaaS offering lays out services which can be readily consumed. Hence, if you are grappling with multiple ideas, you are better off realising them sooner in your efforts to test the waters.


This is the most talked about but less adopted stream in the startup world. A sense of urgency is at the centre of any startup and an essential ingredient for them to compete. Down the line, you may realise the aspect of disciplined approach to execution, and the lack of it in your effort to release something quickly. As your business grows, you will realise that TTM is increasing and you lack agility in the process followed. This is where the need for DevOps is felt and an essential ingredient in the overall SDLC. The sooner startups bring in this culture, the better would be their road ahead when it comes to scaling their systems and being responsive to business demands.

Cloud credit management and cost optimisation

Major public cloud vendors provide usage credits to help startups jumpstart. It may last for a while, and is considered a major cost saver in the startup world. However, one should be mindful of the fact that these credits have an expiry and at some point, they must shift this cost into their routine burn rate. One crucial recommendation for startups here is to leverage these credits and invest in experimentation. You have to invest time to explore ways and means to scale, secure, grow, and instil value into your overall offerings.

In addition, the experimentation should also lead you into discovering the most cost-effective way to run your solution. This is critical to address the reality when credits run out and you have to pay from your pocket, because you are assured that you have the most economical solution in place.

* Minimise tech breakdowns

 Cloud provides more than one solution to a problem. Hence choose the one that justifies the cost as well as meets your performance requirement. Be it B2B or B2C, your differentiator may eventually be ‘availability’ and ‘responsiveness’. Hence it is important to build your system considering they would fail. Transient failures are evident and ensure you know the failover or recovery path in times of crisis. Your systems should carry the tag of ‘fail safe’, since factors like ‘availability’ and ‘responsiveness’ have a direct impact on the perception your users will have of your product and the reputation.

Cloud is evolving and so should startups. Cloud platform vendors are offering innovative solutions and a great amount of effort is going into democratising the software for application developers. Startups face a plethora of challenges and have to ensure the boat sails with certain stability. Based on my observation of the field, startups need to give thought to the above described areas. It is always desirable to do it right the first time, though learning from failures gives great insights on the way to success.

Disclaimer: - Following article come from YOURSTORY

Monday, September 19, 2016

How Entrepreneurs Made A Comeback After Business Failure.

Sydney entrepreneur Laura Moore came back from disaster to launch a successful health coaching business.
Running a small business can be one of the biggest, and most rewarding, challenges you can take on.

Imagine then, pouring your heart, time and life savings into developing, launching and growing your business, only to watch it either come close to failure, or worse, go under.

How do you make it back from there?

That was the question facing Sydney entrepreneur Laura Moore, who lost her life's savings when the gym franchise she poured $400,000 into burned down last year.

She was only eight months into a five-year franchise commitment when she saw her dreams literally go up in smoke.

"The flames went up into the vents and ripped into the gym taking the entire building down," she told.

"I actually stood and watched as the roof collapsed and the building fell into the street."

She tried to salvage the business by operating out of a nearby gym, but soon realised that was not financially viable, and faced a seven-month battle to settle her franchise agreement.

But financial dramas were secondary to the toll the incident would take on her health.

A Failed Business Doesn't Mean Personal Failure

"I put on weight, was experiencing extreme fatigue, constant bloating and poor digestion, brain fog and erratic moods, which was seriously affecting my performance both personally and professionally," she said.

"To the world, it was business as usual, but behind closed doors I was battling with trying to exit the franchise, constantly worrying about my team and clients and how I could ensure they were impacted as minimally as possible, and struggling daily with my health. I now realise there was still a big part of me that felt like a failure."

Moore said she now uses what she learned during that dark time to help others through her new performance and health coaching business, Uppy.

"I learned how to manage and overcome the thoughts and behaviours that had led me to that point in the first place -- perfectionism, unrelenting standards, self-sabotage, fear of failure, fear of not being good enough, procrastination, over-working," she said.

"I've always wanted to run my own business and this setback wasn't enough to kill that dream.

"The fire was kind of a blessing because it allowed me to get amazing insight very early on into my business career, so I now know the key areas I need to improve on (or delegate!) in order to make my new and future businesses run efficiently and successfully, and in a way that serves me personally too.

"I'm sick of seeing people struggle because they've been misinformed or they don't know there's another way, so I created Uppy as I believe everyone has a right to the knowledge and support that can help them live more."

Even experienced entrepreneurs can face failure. Entrepreneur Pawl Cubbin had to completely re-think his marketing plan when his Canberra nightclub started to flounder

Pawl Cubbin, serial entrepreneur and founder of advertising agency ZOO Group, also faced the burn of a failing business 12 years ago when the shine wore off his Canberra nightclub Academy 11 months after opening.

"It was a massive endeavour to get it going: Canberra's not a big place and we opened this nightclub in an underground cinema," he told HuffPost Australia.

"It had heaps of atmosphere and the novelty value was big, so it went well for the best part of 12 months -- everybody came and it was a big deal. We killed it.

"But after 12 months the novelty wore off; everybody had been multiple times and even though it was unique in Canberra, it was reduced to a certain demographic and that wasn't enough to sustain it."

Cubbin said the business floundered for three months before he could come up with a plan to save it.

"It was an expensive project ... we'd invested too much to close it," he said.

"It did too well too initially for us to close it. You've got to identify what you're doing wrong -- you've got to take some blame.

"One of the guys I worked with said 'I think this is the demographic we want, let's put that out there and promote that' and we did. And it was the right thing at the right time, so we were lucky."

Disclaimer: - Following article come from THP

Thursday, September 8, 2016

The Richest Entrepreneur Under 40 in Hurun's India Rich List for 2016.

BENGALURU: Paytm founder Vijay Shekhar Sharma's wealth surged by 162% in the past one year, making him the richest entrepreneur under 40 in Hurun's India rich list for 2016.
Sharma is worth about Rs 7,300 crore, up from Rs 2,824 crore a year earlier. The rise in wealth can be attributed to Chinese e-commerce behemoth Alibaba investment in the company and subsequent funding rounds that have raised Paytm valuation. Sharma holds about 21% stake in the company.

The Key To Success Is Not To Think, It's To Do

After Sharma, Indigo co-founder Rakesh Gangawal has seen the biggest increase in wealth of more than 150%. His wealth stood at Rs 15,900 crore, thanks to the share price performance of the airline post its IPO last year. 

Anas Rahman Junaid, MDIndia of Hurun Report, a monthly magazine that focuses on high net-worth individuals in China and India, said subdued investor interest in e-commerce and online businesses had reduced valuations of e commerce unicorns in 2016. Several mutual funds with holdings in Flipkart have lowered the valuations of those stakes in the past few months 

Bhavish Aggarwal of Ola, the youngest in the list at 30, is worth Rs 3,000 crore, up from Rs 2,385 crore in last year's list. His co-founder Ankit Bhati is no longer in the list, which looks at those with wealth of Rs 1,600 crore and more. Last year, Bhati's wealth was exactly the same as Aggarwal's. Hurun's Junaid said Bhati does not have as much stake as Aggarwal does at present.

Disclaimer: - Following article come from ET

Thursday, September 1, 2016

Business on a Budget: 5 Money Saving Tips for Every Startup Entrepreneur.

The failure rate of startup businesses is not news to anyone in the world of entrepreneurship. And it's equally sad to know that if you sift through the carcasses of these dead businesses, you will definitely find startups that were founded on great business ideas.

You may wonder why businesses built on brilliant ideas still fail. The answer is usually fairly simple. Having an idea for a business and having an idea about how to run a business are two entirely different things. The reason most startups fail centers around two things -- management skill and financial skill. A dearth of any of these two can kill your business.

I want to focus on the latter reason, financial skill. Let's say your capital base is robust enough to deal with all your business expenses. If you do not know how to be disciplined and frugal with spending, the amount of money you have in your business’s kitty will not do you any good.

If you are a startup entrepreneur, here are a few tips to help ensure that you maintain your capital base, and enhance your profit margins as soon as possible.

1. Postpone personnel rewards.
Starting and running a business is already a herculean task on its own. Think of how much worse things will be if you start dolling out exorbitant amounts of money on unnecessary employment benefits and expensive salaries. You can avoid depleting your capital by avoiding these practices. Set your employee salaries reasonably and augment it with performance bonuses.

Doing Common Thing Uncommonly Well Brings Success.

If you must have employee benefits, limit them to only those that are critical to motivating employees to achieving the set goals and objectives. Beyond helping you save money by breaking even and turning profit sooner, this practice will help you develop a culture of frugal and disciplined spending in your business.

2. Keep personal and business finances separate.
You are the founder of your business. This implies that you own the business. The problem comes up when you mistake this to mean that you are the business. No  successful business can be run with such a mindset.

Always keep your personal and your business finances separate. Money made from the business is for the purpose of maintaining and growing the business. If you do not separate these two, you will soon find yourself dipping your hands into the business’ coffers for reasons that are only of personal benefit.

It helps to have you on the payroll of the business like every other employee. This ensures that you are making money from your business while also preventing you from depleting business funds.

3. Spend cheap with coupons.
Don't ever buy stuff because you can afford to. Having enough money to make a purchase does not mean that you should make it. Develop the habit of looking around while shopping -- especially online -- to ensure that you get the best possible deal.

One way to spend cheaply is by using coupons. You will be amazed how much you can save. I have always used coupons whenever available for important business purchases. When I purchased the first set of PCs for my ecommerce startup, I was able to save a good amount of money by using the coupon codes I got through Promocode watch. The fact is, coupon codes have remained one of the main reasons some businesses have been able to start up and stay afloat.

4. Skip the real estate.
You do not need a corner office to run a successful business. Many businesses that are successful today started in awkward locations. Just ask the founders of Google.

Do not spend money on real estate that will not directly benefit the business. You can turn part of your house or any other free space you have into an office. From there, you can run your business with your small band of employees.

Let the business grow and expand organically so that when the time to spend on real estate comes, you will know about it and better still, you will be able to afford it without putting a financial strain on your business.

In essence, drop off whatever won’t be missed if they are taken out. You can start cheap, and scale up later. I started my first six figure ecommerce business on free WordPress themes. I scaled up from there.

5. Purchase key person insurance.
In every business, you will find that there are certain people who are invaluable to its success. One way to protect your business is to purchase key person insurance on such a person. As a business owner, you certainly belong in that category.

Key person insurance is a fancy way to describe life insurance on you, co-founder or key employee on whom the continued successful operation of your business depends. The business is the beneficiary under this policy. This insurance coverage is important because it ensures that if anything should happen to the key person, rendering him/her incapable of working, the business will have other options available to them besides filing for bankruptcy.

The business will be able to use the insurance payoff to cover operating costs and pay off debts until they can find a replacement for the key person.

The ability to adequately align your business with strict budget discipline is critical to its survival. Since finance is the life-wire of most businesses, every startup entrepreneur should focus on how to efficiently manage his/her business budget.

Disclaimer: - Following article come from Entrepreneur