MUMBAI : When Shwetambari Shetty, 37, was looking to start her fitness venture Tribe Fitness, she had to seek help from her husband. She had started saving money for her venture even before she had a proper plan. “I worked with HSBC Bank for seven years and quit in 2010," said Shetty. After quitting, she took up work as a Zumba instructor in February 2011. “I did freelance work for three years and parked all my savings in a bank account," she said.

Shetty’s only investment was a house, which she had bought in 2005. “It was difficult to round up the deal because it was difficult to get a buyer at the price I was quoting. The process took around five to six months. I got a good return on the sale," said Shetty.

Along with her savings and the property, she dipped into her provident fund and her husband’s as well. “My husband supported me with his PF money," said Shetty. Finally, in February 2014, Shetty set up Tribe Fitness along with a partner. “The first two years were tricky because we did not have any investors. But we made enough every month to pay our rent, loan and salaries. I did not feel the pinch financially because I had my husband as a financial backup. We did cut down on a couple of holidays for one and a half years," said Shetty.

Tribe Fitness was acquired in January 2017 by, led by Mukesh Bansal and Ankit Nagori. She hired a financial advisor in early 2017.

It’s all in the family

For the founders of Sprucex Care LLP, Rajdeep Mukherjee, 26, his girlfriend Kirti Sharma, 25, and his mother Sharmita Mukherjee, 52, monetary support came from Rajdeep’s father. Sharma, social media manager, and Sharmita, NGO secretary, came up with the idea to manufacture bio-degradable sanitary napkins in November 2011. Rajdeep left his studies and joined Sharma and his mother in January 2018. “In no time, we were supplying to NGOs nearby. For our second project, where we ventured into manufacturing sanitary napkins with wings, we put out our ancestral property on mortgage," said Rajdeep.

“Around 15% of my annual income is always there as an emergency fund. After the venture was set up, I invested in the stock market and fixed deposits on the advice and guidance of my father. I had started an SIP during my working days," he said

Think before you borrow

However, not everyone may have a support system to start their own venture. According to Pawan Agrawal, founder of New Delhi-based, an online financial advisory firm, if you are using your parent’s money that was directed towards a particular financial goal, such as retirement, then it is a risky situation.

“The time that went into building that retirement kitty will not come back and the money put into it will not come back in a jiffy. It is a big risk. Do not wait to accumulate the lump sum you borrowed but start returning in monthly installments," said Agarwal.

According to the Mumbai-based financial planner, if you do not have a financial backing then before starting your business, you should segregate your business and personal expenses. “You should have enough access to capital. You can maintain an overdraft account and create a pool of three years of your expenses," he said.