Are you in the process of starting a home business? Are you excited about the flexibility it’ll bring to your life? Are you ready to take control of your income?
If you answered yes to these questions, you’re not alone. Check out this excerpt from a Small Business Trends article:
“69% of businesses now start in the home. And 59% of established businesses more than 3 and a half years old continue to operate from there.”
In other words, the home-based business revolution is here!
If you’re interested in joining in on the action, there’s no better time than now to answer these questions:
- Where will you set up your home office?
- What type of business do you want to start?
- How will you secure the financing you need?
While the first two questions are typically easy to answer, the last one is a bit more complex. Fortunately, there are many places to turn for financing, ensuring that you’re able to get the money you need.
Here are Four Ideas to Consider
- Personal savings: If you have enough money in the bank, this is the best place to turn to finance your home business. Since you aren’t taking on any debt, you won’t have this hanging over your head.
- Personal loan: Depending on your credit score and personal financial circumstances, this is a strong option to consider. The primary benefit of a personal loan is the ability to secure a chunk of money — typically $5k to $50k — without collateral. There are multiple terms to choose from, thus allowing you to customize your payment to meet your needs.
- Credit card: For many years, entrepreneurs have been using credit cards to finance their endeavor. It’s not the right option for everyone, but it’s something to consider. If you’re looking for a place to start, these resources will point you in the right direction. There are hundreds of business credit card offers to compare, so take your time on your search for the perfect one.
- Business bank loan: In addition to local lenders, search online for those that offer small business loans. This allows you to compare the terms and conditions of multiple loans, focusing on term, interest rate, and fees among other important details.
Final Thoughts
There is a lot to think about when starting a home-based business, with financing at the top of your priority list.
Once you know how much money you need to borrow, begin your search. The four ideas above will put you on the right track.
Final tip: you may need to combine two or more of these business financing options to get all the money you need.
Do you have any experience starting and operating a home business? Were you able to secure all the financing you needed up front? What approach did you take?
Share your thoughts, feedback, and guidance in the comment section below. Your advice can go a long way in helping other home-based business entrepreneurs reach their many goals.
