Ask Entrepreneurs

Are you a recent entrepreneur?

Just stepping into the world of business?

Do you have questions?

Looking to pick on better or more experienced brains?

Are you wondering "what to do?"

You are in the right place! Ask all you want and get experienced entrepreneurs to answer your queries.  

Q. Should I open a separate account for my business or let it merge with my personal account?

- Mukta Srinivasan

A. It's important to keep your business and personal accounts completely separate. Please open a separate account when you start your business. This will help you generate accurate financial reports. Of course for opening the account you may be asked to give your personal information, but that is fine.

Q. Is it recommended to insure a business? I have a small tailoring unit, and run a boutique from home.

- Jaya Das

A. Yes, I would strongly recommend that you insure your tailoring unit and boutique. Remember, calamities like theft, fire, earthquake etc. will come unannounced. As an entrepreneur, you may not have resources to start afresh or bear the losses in case of a calamity. These days there are several insurance plans available, do check them out.

Q. I run a home based catering unit, and have kept my prices pretty low, and my profit margin too has been low. Now I do have a regular clientele and my friends are advising me to increase my prices. But I am afraid that I may lose my customers. What should I do?

- Anita Khosla

A. It is important that you find out what prices your competitors are offering. If you are underselling, and not making a profit, you should not be in business! I understand your theory about keeping your prices low and getting a firm clientele base. But if you have a client base, and are not making the profit you should, it's time to increase the prices. I advise.

• First, find out the rates of your competitors.
• Increase your prices gradually, about 2% more for starters will be okay.
• After 6 months assess whether your clients have walked away or are they still with you.
• If you have lost clients, and turnover is low, wait.
• If turnover has gone up and client base remains the same, you can go ahead and increase another 2%.