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  • Make an Investment in YOU with a Legitimate Home Based Business
  • Tracy Freese
  • entrepreneurFinanceminimalist lifestyleminimalist livingstart up
Make an Investment in YOU with a Legitimate Home Based Business

I was chatting with my friend, Gene Jolley, and we were discussing how easy it is to get started with legitimate home based businesses today. Kicking the dead-end job is the first step to untethered happiness, but how does one get started with your idea? Well, the good news is there are several resources available to finance your home based business. You'll have to do some research to find what's available in your area, but this guide will show you several areas to begin looking to get the financing you need for your home based business.

The Small Business Administration (SBA) is an excellent place to turn to for home based business financing. It doesn't make grants that your home based business won't have to pay back, nor does it make direct loans to small and home based businesses. Instead, the SBA guarantees loans given by private lenders. This reduces the risk associated with new business ventures and makes it easier to get lenders for your home based business. However, to get a SBA loan, your home based business must be a profit making one, and you will have to guarantee your loan personally. This means putting your personal assets at risk. Also, to be eligible for an SBA assistance and/or loan, your home based business has to be in the United States, and there's other criteria that must be met. Still, if you're looking for financial assistance to start your home based business, the SBA is a good place to start.

Private grants are another type of financing you can look into for your home based business. There are many different types of grants, often designed to support a specific section of the business community such as women and minorities, and there could likely be one for your home based business. The Internet is a great place to do your research. The grant process can take awhile, so if you decide this is the route you want to go for financing your home business, and your home based business meets the criteria of a grant, you will want to get started with the grant writing process as soon as possible. Also, you may need to hire a grant writer to help you.

Winning a contest is another great way to get started with your home based business. I personally found seed money to begin Home of Wealth in what was called a "pitch-off," or more commonly known as a business plan contest. Gene Jolley offers $1000 through his "21 Day Blogging Challenge" where participants get serious about their businesses by crafting 21 blogs, sharing them through social media, and utilizing videos to strategically get off the ground.

Another type of home based business financing is through what's called "angel investors." These are investors who are willing to lend money to fledgling small and home based businesses, generally because they know a good thing when they see it and are willing to take some risks. Angel investors for home based businesses may not be that easy to find, but with some networking in your area, you'll be able to locate several. A great online resource is Angellist.com.

Joining your local Chamber of Commerce is a good way to find angel investors. Also, talk to accountants who may be able to bring together several investors for your home based business. This happens a lot more often than you might think because investing in a small or home based business can provide a good tax break for many people. And then there are just some good souls out there who want to help others start home based businesses because they've been there themselves and managed to create successful home based businesses of their own*.

One final note. The only investors to be wary of for your home based business are those you might find in your own family. It just simply isn't a good idea to borrow money for your home based business, or for anything else for that matter, from family members. There are just too many things that can go wrong in a financial obligation like this. A family member you borrow money from to start your home based business may pressure you to run the business his or her way, or worse, your home based business could go under and have to declare bankruptcy. It's horrible to lose any investor's money, but when it's Uncle David's, it's much worse. So only borrow money for your home based business from family members as a last resort, and only if you're certain you have a sure thing.

If you find yourself leaning more and more toward walking into your bosses' office and yelling, "I QUIT!" It might be time to drop by Gene's website and click on some of his helpful home based business links.

*Source: Charles Fuchs
  • Tracy Freese
  • entrepreneurFinanceminimalist lifestyleminimalist livingstart up