A home-based business is a great way to make money from your living room. As long as you have an excellent idea and a viable business plan, there is scope for growth. Still, even though it’s a modern company, some of the old rooms apply. The most important of them is funding. Whether you have a store full of employees or a bedroom with a laptop, the business needs money. Otherwise, the costs and expenses will pile up and the company will crumble.
Thankfully, there are many ways to finance your home business. Here are the basics.
Credit Cards
As far as a piece of plastic is concerned, a credit card is one of the most powerful on the planet. As consolidated.credit says, it extends your purchasing power by deepening the firm’s pockets. Sadly, many home-based companies do not see it this way because they are scared. Yes, there are risks and the debt may pile up and affect the business’s credit. However, as long as you use it correctly, it is a flexible and powerful tool. The keys that you should keep in mind are to pay off the balance in full each month and to take advantage of promotions. Zero % interest for 12 months is a deal you can’t afford to turn down.
Crowd Funding
If the idea of managing a piece of plastic does not apply, there are other options. The best one for SMEs with a small budget is a crowd-sourcing program. Simply put, a site like Kickstarter.com is a perfect place for an individual to find funding for their creative vision. In fact, wired.com shows just how popular crowdsourcing resources are by detailing their rise. It is a gamble because people have to buy into the idea to donate. However, if it catches fire, the money is yours and you do not have to pay it back.
Government Grants
Another “free” method is through a grant or bursary. Generally, people think that the government does not care about small companies, but this is wrong. Like the majority of experts, they understand SMEs are the lifeblood of the economy. Therefore, plenty of bursaries and interest-free grants are on offer. The application process is long and arduous, yet it is worth the hassle to secure the funding. Smart people actually create a business in a niche or failing industry to increase the chances of success. The method is advantageous if the government is on board. For example, there’s been a recent push towards trade jobs and apprenticeships.
Family Loan
Going to a bank or private lender is not appealing for lots of people. However, if you cannot get a loan, where will you find the money? The answer is in the back pockets of your family and best friends. Of course, they have to be willing to lend the cash in the first place. That means they need to have enough excess to be able to “invest.” However, if they are willing and have the money, it is a win-win. Not only are the interest rates low, but also they cannot take away the house as collateral.
Sometimes, you have to think outside the box to build something from nothing.