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From the Email Bag – How to Fund a Home-Based Business By Christine Durst & Michael Haaren July 5, 2012 Dear Rat Race Rebellion: My nest egg used to look like it had been laid by a free-range hen. But now it looks like it might not hatch at all. I’d like to start a home-based business on the side, but I don’t have any money. Where can I get some, without robbing a bank? – Ralph in Macon, Ga. Dear Ralph: Most people who want to start a home-based business face the same challenge you do. Here are three common ways to raise the greenbacks, and the pros and cons of each. 1. You can borrow from family or friends. It’s simple to do, but we don’t recommend it unless the sums are small enough (usually under $1,000) that you can repay them within, say, a year. And even if you do pay back every penny on time, you have still permanently changed the relationship by asking for the money. The only way to “succeed” on this path is to permanently change the relationship once again by adding a hefty premium when you repay the debt. Then tell your Uncle Butch that it was an investment, not a loan. He’ll appreciate the difference when he pockets it, and he’ll like your style. 2. Use credit cards. Back in day, when interest rates on credit card balances were kept relatively low by the usury laws, starting a small business on credit cards didn’t carry the risk it does now. Plus, low introductory rates expire quickly when you’re trying to beat the bushes for business, so you can soon be drowning in debt. If you use your cards, do it sparingly, and resist the urge to splurge on that new Sun King desk throne when a Goodwill office chair would do. Plus, when that first fat check comes in, don’t run off for a week in Barbados, but pay down your debt. The goal is to get into “black ink” and out of “red ink” as quickly as you can. 3. Bootstrap. This is our favorite. It means investing in your business as you bring money in from sales. It means minimizing debt, and focusing on landing that first customer asap. You “wow” him or her, which leads to the second and third. Bootstrappers are usually careful with their money. They don’t like to gamble, and they’re disciplined. Microsoft is the classic bootstrap story. Dear Rat Race Rebellion: I’m a military spouse and we move about every three years. Several times I’ve moved to places where some jobs were available, but employers put signs in the windows saying they don’t hire military spouses. I’d like to work from home and have a “portable career,” and not have to struggle with finding something new – or finding unemployment – every time we move. What do you suggest? Mindy in Fayetteville, N.C. Dear Mindy: There are several options you might consider. Companies like American Express and Amazon – along with about 80 more – are increasingly hiring home-based customer service agents. These jobs pay approximately $9-$20 per hour, and you can often continue to work after you move. For a list of these companies, click here. If you’re interested in self-employment and have administrative experience, a Virtual Assistant role might fit the bill. “VAs,” as they’re known, have their own clients and set their own hours. They earn $20 an hour and up, depending on their skills and niche. For more, see the International Virtual Assistants Association, at www.IVAA.org. ---- Christine Durst and Michael Haaren are leaders in the work-at-home movement and advocates of de-rat-raced living. Their latest book is Work at Home Now, a guide to finding home-based jobs. They offer additional guidance on finding home-based work at www.RatRaceRebellion.com. To read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com. COPYRIGHT 2012 BY STAFFCENTRIX, DISTRIBUTED BY CREATORS.COM |
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