Rahul Sharma – the 28 year old founder and CEO of 3Embed Software Technologies and Co-Founder, Appscrip
Rahul, who is an engineer by education, embodies the young entrepreneurial spirit. He chose to take the entrepreneurial route after he realised a job was limiting at best. He launched his first start-up 3Embed at the age of 23 in 2011. The start-up is completely bootstrapped and Rahul took a salary from his start-up only when his company had sufficient revenues – a process that took 3 years.
Scripbox: How much did you start with and how did you finance the early days?
"It was only when I had 6 months of working capital and salaries for the employees that I decided to quit my job and work full time for my company in 2013".
Scripbox: How did your family background help or influence your decision?
Rahul: "I come from a business family. This certainly influenced my endeavors. In fact, my father guided me initially on the financial aspects of the business".
Scripbox: What’s your start-up about?
Rahul: "End to end Mobility solutions for enterprises. Our solutions are being used by start-ups across the world, from cab services to logistics companies."
Scripbox: What was the main challenge during the early days?
Rahul: "Working Capital and cash flow were the main challenges. As working capital was critical for us, we adopted the safest possible instruments, such as current accounts and we worked with overdrafts on those accounts."
Rahul: "No, I managed my expenses from my job’s salary. My savings were going into my start-up for the most part. I took a salary from my startup only after 3 years when we had sufficient revenues. "
Scripbox: Did you approach Venture Capital firms for funding?
Rahul: "No, We are a completely bootstrapped start-up, and it has helped us stay lean and focused. I don’t believe every start-up should go for funding and it always makes sense to try and remain bootstrapped as much as possible."
Scripbox: How did you use your personal money?
Rahul: "I had to save more as we were completely bootstrapped. All revenues were going into funding the company’s expenses such as salaries for the employees. I am not an especially frugal person and I like to party as much as anyone, but as an entrepreneur you hardly get time to unwind".
"While I did have to cut back on expenses, the fact that I was so busy running my company prevented me from spending too much"
Scripbox: How are you investing your money now?
Rahul: "I am using my savings to build a real estate asset which will serve as my company’s office. This will help me build a permanent asset which will appreciate in value over the long run."
Scripbox: How are you planning for the future?
Rahul: "I want to persify my investments after I am done with the real estate asset I am building. At later stages I am planning to take the equity route. I have experience with equity and consider them one of the best ways to build wealth"
Scripbox: What are your views on money and finance?
Rahul: "I believe financial awareness is an absolute necessity. Knowing which investment type is essential for achieving a specific goal and the risk associated with it is important."
"While my personal belief is that starting your own company is the best way to increase your wealth, investing in equity and equity mutual funds is a good option for most people"
Scripbox: Do you have any regrets or wish something you did differently?
Rahul: "I should have quit earlier and should have had more faith in myself". This is an advice he would like to share with everyone. If you want to be an entrepreneur, having faith and confidence in your abilities is definitely important.
This new series by Scripbox talks about how entrepreneurs are turning their dreams into reality. We will focus on the financial aspects of their journey and how their relationship with money helped them realise their entrepreneurial dreams.