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.