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Home Based Business
Start Up Funding
Small business start up funding from banks is not easy to obtain - particularly when the economy is in a downturn or if you do not own property. One big advantage about home based businesses is that your initial costs are usually lower compared with opening up an office in town where you're paying rent.
Naturally, the amount of money you'll need to get your home buisness going will depend on what you're intending to do, and also whether you're looking to work full time or part time from home. You need to be give careful consideration to your overall start up costs. On the one hand, you do need a certain amount of money for starting small business ideas. On the other hand, the more money you invest, the greater the pressure to succeed quickly - and the more you have to lose. Having said that, where can you get money to open a small business? - Bank Loans - it's very difficult to obtain an unsecured small business loan. The bank will be looking at two key aspects: your business idea and you as a person. They are more likely to lend for proven traditional small business ideas such as setting up a bookkeeping service rather than for a completely new idea.
- Equipment Finance - this type of finance is easier to obtain because the finance company will take back the asset if you default on your payments.
- Grants - these are the best source of outside finance if you can get them. However, you need to make sure that you are not spending money 'just to get a grant'. What if the grant was not available? Would that spending still be an important part of your business plan?
In my view, the path of least risk and most probable success (unless you are experienced in business) is to establish a part time, low cost, home based business as a second income, building it up gradually while you earn a steady 'wage' from a job or other source. I'd also suggest keeping your costs to a level really needed for your home based business. It is so easy to get tempted down the path of spending money just because that's the way you see other small businesses doing it.
Many success stories are based on contrarian thinking - making decisions that are based on logic rather than crowd behaviour, because most new businesses get it wrong.The statistics for small business failures are shocking. Most businesses fail. So have a good look at success stories. Learn how other people have built successful home based businesses. In my experience, one of the principles is to keep your home business start up funding as low as possible.
Return from Business Start Up Funding to Make Extra Money From Home
Return to Successful Home Based Business
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LEARN FROM THE EXPERTS You can read some great advice on real home based businesses in our series of expert interviews
SELLING on eBAY
Skip McGrath, author of many books including The Complete eBay Marketing System talks about how a novice can get started selling on eBay. HOME STAGING
Debra Gould, the 'Staging Diva' provides great tips for a business focused on improving the internal decor of homes making them easier to sell. FREELANCE BOOKKEEPING
Sylvia Jaumann, author of Starting & Running Your Own Bookkeeping Business, advises on starting a bookkeeping business from home. RESUME WRITING
Teena Rose, author of The Ultimate Resource to Building a $100,000 Resume-Writing Business, explains why resume writing is in demand in tough economic times. FREELANCE TUTORING
Dr Alicia Holland-Johnson, author of Becoming a Better Tutor, explains what subject areas are in demand and how to find customers. HOME BASED COURIER
Sam Knowlton, who runs the CourierPros web site with Bob Lavendusky, advises how a freelance courier can compete against national courier companies. SELLING USED BOOKS
Joe Waynick, author of Internet Bookselling Made Easy! How to Earn a Living Selling Used Books Online, advises how to get started by selling books you already own.
Home BIZ Update
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