Planning a startup? Tips to manage your finances from a CEO

Venture Capitalist turned entrepreneur Vipin Aggarwal recently raised USD 3.2 million for his ed-tech startup OnlineTyari. The company which offers preparation for competitive exams counts Michael & Susan Dell Foundation and 500 Startups as its prime investors, among others.

The two year old portal sells content generated by publishers and coaching centres and claims to have over 60 top publishers on its platform. Success, however, did not come easy to the former vice president of venture capital firm Nexus Venture Partners in India.

His first startup, a social engagement and business intelligence platform enMarkit had to be shut down due to lack of funding in the market, early on. He had earlier worked as an investor for Kotak's Private Equity arm as well. OnlneTyari earns commissions to the tune of 30 -50 percent from the partner publishers.

The average ticket size of one package, it sells on its platform ranges between Rs 50-100. In an interaction with, he shares insights on how a first time entrepreneur should manage his or her personal finance to avoid a bumpy ride ahead.

These are some of his personal finance tips for budding entrepreneurs from Aggarwal:

Savings and Insurance 

- Personal, even small scale finance instrument is important. An instrument like a public provident fund saving will help a person during his mid-forties when he plans to withdraw that to start a venture

- Keep in mind that the venture will take longer than budgeted to generate any revenues. (Aggarwal had saved about Rs 40-50 lakh which he invested back into his first startup)

- Have adequate insurance for yourself and family

- If you have dependents such as parents, be sure to insure them before the age of 55 years. Insurers charge high premia after an individual attains the age of 60 years

- Adequately insure life and health besides property as well if you have fixed assets such as a factory, building or warehouse



- Clear off loans before you take the plunge

- Reduce credit card debt to minimum

- Aggarwal had a minimal home loan and was living on rent when he took the plunge. His wife too quit her job in an e-commerce firm and joined him as a co-founder  


Maintain balance between time and money

- Try to be a miser with the cash you spend but maintain balance between time and money. Time is limited

- Outsource things you can’t do yourself. You can give away extra money to get that thing built in significantly lesser time “Sometimes as entrepreneurs, we want to conserve too much cash. In such scenario there is a possibility of losing out an opportunity because of lack of time,” summarises Aggarwal.

Read more at: