Your home business’ start up cost will depend on what business you’re starting and what are the logistics you need. If it is a hobby that you’re turning into a business, then chances are, you already have materials to get you started, so you will only need to add a little bit more for packaging (if it’s a tangible product you are selling) and the cost of securing the necessary licenses and permits. Understand that a business will not be a lifestyle-sustaining venture overnight. It takes about 6 months to a year before you can start to make a profit, or at least recoup your investment.
There are ways you can raise your needed capital, and support the business until it starts to earn.
Take on a part-time job: Consider taking on a part-time job while working on your new venture for the rest of your time.
Turn your employer into a client: This offers a great advantage to your employer, as they already know how you perform and they will continue to have your productivity, minus the benefits that they have been giving you. Just make sure that you will not be competing for your employer’s clients, as this puts your integrity in question.
Live on a single salary: If you are married and both of you are working, start to budget and live on a single salary for a period of time. That will help you build a nest egg you can take from for the business’ capitalization.
Use your savings: If you don’t have one yet, start saving now. If you already have one, consider using it to finance your venture.
Borrow from family or friends: This can go two ways… Either your friends or family are not supportive of you, in which case you can forget about asking them for a loan, or they will just be as excited as you with your venture and will be enthusiastic about helping you achieve your goal.
Credit: This is not something that I will personally recommend, but if you think you have an achievable business plan, then by all means, go for it. Just factor in the high interest rates you will incur in your financial plan so you know how to use your credit wisely.
Loan: There are banks and institutions that offer loans for small business start ups, but there are requirements that you need to comply with. Your business plan will come in handy if you intend to take out a loan to finance your venture.
Investors: You can consider taking in capitalists, just make sure that you have everything covered. Consult a professional about this because your investors will become part owners of your business, so it is important that you are legally protected.
Before you even consider putting up money for your business, be sure that you have a business plan that includes all the financial aspects of starting and running a business.
Marge, also known as The Happy WAHM, is a virtual assistant who turned her passion for entrepreneurship into a worthy endeavor of offering complete business solutions to CEOs and business owners around the world. She turned her back on a thriving corporate career to become a hands-on mom and created a lifestyle that allowed her to build a homebased career, homeschool her children, and still have time to pursue her passion for arts and crafting.
She only posts her content on her website, TheHappyWAHM.com. If you see this content on someone else’s site then it is NOT by any means authorized.
