It’s an all-too-familiar scenario: you tell someone that you run a home-based business, and they say something patronizing like “wow, it must be nice to be able to work in your bath robe and slippers!”
Naturally, you’re above participating in such petty dialogue, but inside you can’t help but burn a little — because you know what all home-based business owners know: while you enjoy some rewards and advantages vs. folks who head into a cubicle for 40 (or more) hours a week, it’s not as if you’re sitting back with your legs up, sipping ice tea and surfing Reddit. You’re running a legitimate business, which is hard — and sometimes grinding — work. You’re also on your own, which means that you don’t get a nice layoff package or severance if things don’t work out. Heck, you don’t even get a thank you card.
What’s more, just like every other business — whether it’s located in an urban skyscraper or a home basement — you need working capital to cover expenses, make investments, and be part of a supply chain that ultimately makes your business sustainable and profitable. The bad news is that banks and credit unions often share the same bathrobe-and-slippers prejudice that I noted above. As such, getting a business loan from either of these sources can be much easier said than done; especially if your home-based business is relatively new, or if you don’t have the collateral required to get approved for lending products like inventory financing.
The good news, however, is that you can use your creativity and ingenuity to boost your working capital. Here are 3 unconventional — but effective — ways to increase your cash flow, and take your home-based business to the next level:
1. Wrap Your Vehicle
A growing number of businesses are paying drivers to emblazon their vehicles with wraps, which are like semi-permanent (i.e. they can be removed by professionals) decals that advertise a brand. The amount you can make depends on a variety of factors, including how much you drive, where you drive, where you live, and so on. You could generate around $200-$500/month, which is certainly a nice cash infusion.
Of course, you could also advertise your own business with a vehicle wrap. They cost about $1000-$2000 to get professionally designed and installed. That’s not cheap, but vehicle wraps are very effective forms of advertising, and far cheaper than TV, radio, magazine, newspaper and billboard advertising.
2. Use Online Advertising
If you generate a fair amount of web traffic, then you can plug into an online advertising network and earn revenue based on the number of ads that appear on your site, and how many clicks they generate. Google’s AdSense is the best-known online advertising network, but there are others.
And in case you’re wondering: don’t worry, you won’t be advertising for any of your competitors! When you sign-up with an online advertising network, you identify your industry and marketplace, and the system ensures that competing ads don’t show up and whisk your customers away.
3. Launch a Crowdfunding Campaign
Kickstarter and Indiegogo are two popular platforms where you can showcase your entrepreneurial gifts to a global community of individual investors — the vast majority of whom are everyday people (i.e. not venture capitalists), but will certainly support something if they find it interesting and worthwhile.
If you head down the crowdfunding route, ensure that your campaign is well-designed and has a realistic target. Expecting to raise $500,000 in 90 days probably isn’t going to happen. But raising $10,000 could definitely be possible if you have the right strategy, right timing and right messaging.
The Bottom Line
As long as you run a home-based business, some people — and yes, some banks and credit unions — will roll their eyes when they find out what you do for a living. Your best move? Ignore it. You have more important things to focus on, such as growing your thriving, successful enterprise and taking it to the next level. Ideally, the unconventional working capital infusion options suggested above will point you towards that goal. Good luck!
