Are you thinking about opening a home-based business? Then why not go for it. Many would be self-employed individuals think that operating a home based business is a breeze. Well, it can be if you know what to expect before you launch it.
A home-based business is no difference from any other business when it comes to funding. You need funds to operate effectively and sustain your niche.
Of course, there are niches in which you can operate on a tight budget. You may be able to pay for expenses with money you have saved over the years. Home-based businesses that may not need a big cash flow include:
- Jewelry Making
- Wedding Planner
- Music lesson teacher
- Dog Walker or Pet Sitter
- Freelance Writer
Although these home based businesses may not require a big budget, you do have to manage money well enough maintain them.
But if you are planning on opening a daycare, offering a tax preparation or accountant services, you are going to need funding for equipment and office technology.
The first thing you should do is look for grants that support your niche. You can research government grants or foundational grants. Agencies which offer federal government grants are U.S. Department of Education (www.ed.gov ), National Endowment for the Humanities, (www.neh.fed.us) and (SBA) Small Business Administration. ( https://www.sba.gov)
Research these agencies and find out how you niche meet the qualifications, and then go through the step by step application process. You will have to write a grant proposal expressing your business idea as well as your goals and objectives. A foundation wants to know where you are going with your business and how you are going to sustain it in the future.
If you don’t know how to write a business proposal, you can always hire a grant writer to do the work. Many professional freelance sites such as Guru and Freelancer employ writers for all types of reports and proposals.
Foundational Grants are monies offered through communities, corporations, private foundations. A few good websites that link too many diverse foundations include
Another source of income you may want to consider is borrowing money from family members or friends. You can even set up a Go Fund Me page so that they can donate monies for your business. You will have to explain them a reason for your business and what you are going to do with the money.
But I must warn you! Borrowing money from family members or friends can result in strained relationships if money isn’t paid back on time. So study such a decision with your life.
Once your business is up and running, you will begin to make a profit if the cost of operating your business and serving your customers isn’t greater than your ROI. If you are constantly spending more money than you make, you should reconsider continuing in the same direction.
But if you are making a profit, the best thing in the beginning stages of a small business is to reinvest in the things you need, including technology and equipment. Constantly upgrading your assets and equipment makes your home based business more productive and competitive . New and better technology can help you operate your business more effectively.
The things you constantly need to upgrade include:
- Desk Top Computer and Monitor
- Hardware and software
- Accountant software
- Payroll software
- Virus protection software
- E-commerce software
- Zero machines
- Website maintenance software
- Hired staff, as business grows (ex: Daycare)
The reason for Optimism against the word “No”
If first, you have trouble finding funds, don’t give up. Keep looking. There is always the opportunity to discover new funding even if you have been turned down many times. Never stop believing that there is someone out there who wants to help you succeed.