Financing Your Home Based Business

Financing Your Home Based Business

In today's world, financing your home-based business can be very challenging, especially with all the financial problems that we are being faced with today. But when there is a will, there is a way and if you really want it, you will get it.

I always tell my clients to drain their savings, checking and anything they can find to liquidate. I'm sure that everyone who is reading this is having a mild stroke right now. But take a deep breath and read on.

When I say that, and I've learned, that YOU have about 40% to 60% of all equipment, business supplies, skills, knowledge, clients, and a mailing list in your hand right now, to start a business. You are just not looking at what you have like a business.

Let me explain more, I always tell me clients; you make a list of everything that you need to start your business. Make the list as large as you can, don't forget anything. Some people take 1 day to create this list; some people take 2 or more days. But don't skip one thing; be as detaiedl as you can.

Now take the list and in your home or wherever you want to start your business and start piling up all the things you need in one corner. You will find almost 90% of things on that list, in the home you are living in right now. You can ask friends, family, next-door neighbors for some of these items. Do not tell them for what it's for. Just start piling up all you need.

On my list, I needed a bookshelf; I found one in a garage sale, two days after I created my list, for $4.50. It was in good condition and I liked it. I bought it and placed it in my home office. That was one of the items on my list.

Now, I'm sure you are saying, what about the big ticketed items... Well that will take some work but you can get it. Be creative, be honest and get it, if you need it. Let me give you an example. I wanted a large copier to make 100's of flayers for the beginning of my business. But I knew I could not afford one to buy. So in the mean time until I could buy one, I took my flayer to a printing shop and worked with the owner for a discounted. After days of discussion, he gave me the discount and I got the flayers for a very low price. Once I started making money. I bought a printer.

Now I said earlier in this article that to drain your finances, right. But you only do that if you really need a big-ticketed item to start your business. If you cannot rent it, then buy it with cash. The cash I'm talking about is your savings, checking and liquidated assets. Remember, if you believe, you will get that money back from sales of your product within a short period of time and put it back as quick as you can. Into your savings, checking account or wherever you got the money, do this fast.

So, if you need $2,000 for a computer. Buy the computer with your money that you have and replace the money when you start getting sales.

I always tell my clients that you have the assets, money, and time for building your business, if you really want it. I never want you to start your business with debt. That will paralyze your judgment and your business because you are working for bankers again and if you are doing that, then why quit your job and go into business. You are just jumping out of one fire to go into another fire.

Now, being a business owner, learning about money is a valuable lesson and it's a fast lesson you need to learn. But to be successful and finical fit with your business, buy with cash and get credit when needed. Then pay back as soon as possible. It's hard to think and work this way. But let me tell you, it's worth it.

Less debt will get you more money. More debt with your business will get you in trouble and less money.

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