America’s small business owners are known trailblazers since they come up with ground-breaking
products and services; they employ about 50% of all private sector workers, and they persevere even
during hard economic times. But what people don’t usually know is that most of them do all of this
without even leaving their homes.

Funding your Home-based business
David Nissen, CEO, and co-founder of Guidant Financial Group, a firm specializing in self-directed IRAs and
Small Business Financing said, “More often than not, a home-based business is going to require less
capital, but often, because most of the funding is for intangible assets, it’s harder to get more traditional
sources of funding.” Hence, Nissen recommends these options for obtaining outside funding.

Credit Card :

People still use the No.1 way to fund a business by using personal credit cards. The advantage of using
a credit card is that credit is available instantly upon approval and no collateral other than your credit
score is needed, but the rates are not terribly attractive. Another type of this card that is more
appealing is the business credit card. Starting a business and need business cards are the only reasons
you need to provide when you call your current credit card companies to avail this type of card. You will
still be required to pledge your credit score as collateral for the loan, securing future funding would be
easier since it will not appear on your credit profile.

Peer-to-Peer Lending:
There are many companies composed of investors which provide unsecured microloans to individuals
without applying “use of proceeds” requirements. Individuals with good credits could receive up to
$50,000 at as low as 9 or 10%.

Rollovers for Business Start-ups:
If you believe your new business has great growth opportunity and don’t need to look into a business coach, invest a portion of your retirement funds into your business instead of getting a loan or taking a taxable distribution. This makes more sense to invest in it instead of getting a loan, which saves on the interest you’d otherwise send to the bank.

SBA Microloan Program:
Startups can avail up to $50,000 through this program and a maximum of six years is required to pay
the average loan of $13,000.

Cash – out Refinance:
This option for funding is a very attractive option for small businesses since “use of proceeds”
requirements are not needed and these loans are typically amortized over 30 years, making rates near an
all-time low. It is important to note that cashing out home equity through a refinance means that you
pay interest on the entire amount regardless of whether you use it right away.

Home Equity Lines of Credit :

Another option for funding small business is the HELOC (Home Equity Lines of Credit) – which is
different from a cash-out refinance. A HELOC allows the borrower to use cash as needed. The interest
only accumulates on the amount withdrawn. HELOCs are usually amortized over 20 years and are
variable. If the amortization is paid off faster, payments will be slightly large and the interest rate could
increase over time and you would have to consider a bpo accounting service.

Equipment Lease:
One great option for businesses that are making small purchases and have no revenue yet is the
equipment lease. This is a type of loan where which a lender purchases equipment and then “leases” it
to a business at a flat monthly rate for a specified number of months. At the end of the lease, the firm
may buy the equipment for its fair market value.

Dealing With Employees

Getting a virtual staff who works from their own home rather than your home is more advantageous
and cost-effective. You can get learn some wisdom from Michelle Gamble-Risley, the CEO of 3L
Publishing, a firm run entirely as a virtual distributed company with staff from different sites and utilizes business process outsourcing:

Only Hire People You Completely Trust:
A virtual environment needs reliable people who are trustworthy and can work without direct
supervision. Their performance and words are the only things you can count on when you can’t interact
with them in person.

Personal Initiative:
People who take true personal initiative are essential to a virtual team. These people and skilled,
professional, and knowledgeable and are not afraid to step up to do the right thing.

Competence:
Virtual staff needs to be competent enough so that you can rely on their efficiency. They should be
proactive enough to learn and figure out working procedures with as little coaching for business and assistance as
possible.

Good Communication:
Good and open communication is essential to a virtual team. Each member has to be in-sync with each
other to guarantee that the job is done properly. They need to respond to their emails, mobile phones, or
texts and acknowledge the team’s requests.

Time Management:
Work efficiency is dependent on proper time management, especially in a virtual work environment. If the
workers flex their schedules, it has to be in-tune with the needs of the company. They need to prioritize
the workload and tasks instead of their personal needs.

Child Care:
Proper arrangements for child care must be done even for mothers working in a work-at-home environment since this is a poor substitute for actual childcare. A working mom could not perform her
work duties properly while taking care of her children.