Don’t reclaim through equity

Most entrepreneurs bear all the operating expenses of their new startup during the first few months of business, while reclaiming these expenses they tend to use the old school style of adjusting it with equities which is not much a recommended style. There are different ways on how an entrepreneur can reclaim and redeem his pre-operating expenses and all it needs is neat and understandable book keeping techniques. "There are very clear accounting guidelines set out that allow entrepreneurs to claim pre-operating expenses, however the entrepreneur has to ensure that the company maintains very transparent books of accounts,” said Sharma to ET.

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Issues with salary

The ultimate joy for an employee is when his mobile beeps with a message that reads the receipt of his salary. Likewise many entrepreneurs start of new projects by sacrificing high paying jobs and the only way things can be fixed for these men is by foregoing immediate pay-outs. "Salary can be claimed at a later stage and the amount due converted into a personal loan, by the entrepreneur who is a director in the venture," says Milind Borate, a co-founder of Druva Software.

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