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.