Six steps to a successful start-up revealed in ACCA’s new guide

Bengaluru, 06 March 2024: With India now the world’s third-biggest start-up ecosystem, ACCA (the Association of Chartered Certified Accountants) the global body for professional accountants, has launched a Founder’s Guide for Start-Ups and Entrepreneurs: Role of Accountancy and Finance. The guide provides insights and practical guidance for aspiring entrepreneurs and finance professionals in India.

Unveiled at the ACCA New Members’ Ceremony in Bengaluru, the guide offers a comprehensive overview of financial management in start-ups whilst showcasing success stories from successful entrepreneurs. It outlines the pivotal role of start-up incubators, the importance of strategic vision and the need for regulatory compliance for sustainable growth in India’s entrepreneurial landscape.

Compiled by leading industry experts and practitioners, the guide highlights the following six crucial steps for a successful start-up:

1. Secure a good valuation: focus on your idea, have a viable product and strong ‘proof of concept’.
2. Manage day-to-day finances: managing and allocating resources effectively is crucial to your success. Have a finance professional on your team who understands the different skills needed to earn and manage money.
3. Ensure growth: define the key performance indicators your business needs to survive and set up systems to record and monitor your progress against them.
4. Deploy good corporate governance from the start: having a compliant business gives a competitive edge when seeking funds from investors, helps in building the company’s reputation, and prevents fraud and errors. Use experts and get it right first time.
5. Only take calculated risks: Prudent risk-taking is the key to success. Take calculated risks and avoid anything that could put a question mark on your business model. Embed risk management in your culture.
6. Manage regulatory and tax issues: stay informed and prioritize compliance with regulations to ensure the viability and sustainability of the business. The guide encourages entrepreneurs to explore diverse support networks and tap into resources offered by start-up ecosystems, such as NSRCEL at IIM Bangalore.

Md. Sajid Khan, Director – India, ACCA said, “Succeeding in entrepreneurship hinges on effective financial management and regulatory compliance. This guide serves as a compass for aspiring entrepreneurs to navigate the complexities of the start-up landscape in India and highlights the valuable role professional accountants can play in supporting them. With a focus on empowering individuals to pursue their entrepreneurial dreams, this guide is a testament to ACCA’s commitment to supporting the thriving start-up ecosystem and fostering sustainable business growth.”

Entrepreneurs, aspiring start-up founders, and professional accountants are encouraged to explore the insights presented in the guide to navigate the dynamic start-up landscape in India effectively. By leveraging the expertise provided, individuals can equip themselves with the knowledge and tools necessary to thrive in the competitive entrepreneurial ecosystem.