Creative ways for funding your home base business

Image by Aaron Jacobs via Flickr

OK you have an business idea and now you need money or seed capital to start-up your new business. Let's take baby steps, you need a computer, office supplies, desk, business cards etc. Many home based business have been started on shoe-string budget by using some creative strategies to get things up and going. I will explore several creative ideas for raising seed capital to get your idea off the ground. Here are a few strategies that you may consider:

• Garage sale - get rid of all that stuff collecting dust and no longer being used. Not only will you declutter your workspace you will begin to build capital.

• Personal loan from friends and family. If you have friends and family that still have money laying around give them my name and number. Just kidding, tapping into a family member to invest into your vision is a good idea. I highly recommend that you work with a attorney and put everything in writing to avoid any nasty legal disputes later.

• Grants - research and find out if any local organizations in your local area have a philanthropic arm to invest in small start-up companies. You will be required to submit a business plan and other documents to apply for most grants. Here's a list of national grant resources to explore, good luck!


• http://www.foundationcenter.org/


• http://www.tgci.com/


• http://www.enterprisecommunity.org/


• http://www.rockfound.org/

• 401k withdrawal - taking a loan from your 401K should be a last resort options if you are looking for seed capital. The main reason is that most 401k plan will impose an significant penalty if you withdraw funds prior to retirement. Also, significant tax penalties may apply. Consult a tax advisor before you make this move.

• Micro loans - the SBA offers micro loans from 13,000 up to 35,000. I recommend checking with your local banking representative on how to complete the necessary documentation for the SBA micro-loan. Most of large banks have a SBA loan officer on site. http://www.sba.gov/services/financialassistance/sbaloantopics/microloans/index.html

Seek out multiple avenues of funding to get you new business off the ground. Many of these creative ideas will require additional work and follow-up to get the funding you need. Stick with it and you will prevail.

Getting started - Own your own business

If you read the headlines or watch the daily news programs we are fed daily doses of how the U.S. economy is in trouble. Unemployment is rising, employers are laying off and jobs are scare. Well yes, that all may be true. Who would ever think of starting a business during this time?Are you crazy? No you are not. Most people fail to realize, that one of keys to our economic turn around are small businesses. If you find yourself unemployed during this time, this is absolutely the best time to start your own business. Many nay sayers will say, you are nuts, for exploring the entrepreneur path. Now is the time to take a risk on You, Inc or in other words yourself. You will never get an opportunity like today to stop and ponder skills and assets you can bring to You, Inc. I once read that, the real meaning of the word J.O.B is Just Over Broke. You will never enjoy financial freedom working for someone who can determine your income. I'm not saying everyone can do this, it's not for the weak, but many of you like me have been on the fence for years, now is the time.

So how do you get started? Write down the key skills that have made you a success in your current profession. Your skill inventory is the key to unlocking your passion. Your business idea should be something you love to do based on the skills you have or can acquire. Next read, research, volunteer and talk to individuals doing what you want to do in business. There are several options for researching your new business idea. The Internet is a good source, but not your only source of information, visit your local library, bounce ideas off your networking circle, utilize social networking sites and lastly visit your community local Chamber of Commerce.

I hope that I have given you some motivation and ideas for getting starting down the entrepreneur path. Being unemployed is not easy, I know that first hand, but it is not the end the world. Look at it as a new beginning to pursue your destiny in life. Don't give up hope, use this time to identity and work your God given talents to help jump start our economy. I believe necessity in the mother of invention. Are you sitting on the next billion dollar idea? Take this time to reinvent yourself and consider the possibilities of starting your own business.

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