The type of business you are getting into will determine the amount of starting capitol you will need. As you looked over the possibilities in our section "Home Business Income" something probably already jumped out at you because it sounded like a business you could afford to attempt right away. Let's use the "accountant working from home" business as an example. This would take very little start-up money because you wouldn't need to rent office space, buy any additional insurance, get another phone, additional utilities, etc.
So using this as an example of getting into a small, home based business, without a loan at all will be true of many of our business ideas. It's a very tempting way to go because the risk factor almost amounts to zero. I like those odds a lot! Oh ya, you might want to splurge and get a new calculator from Staples© and while you're there, grab some extra rolls of paper for it. (This is important because from day one you need to drive into your head that:)
Now let's go to the other extreme and look into a much more complex type of business and the options you might have to finance it. Lets look at a Subway© franchise for example. You will need between $100,000 and $250,000 to be a part of one of the best franchises in America so it sounds like time to take out a loan or two.
Of course this is a lot of money and even your long time friend at the local bank will want you to have a substantial amount of collateral before he will even consider taking your application. Even the Small Business Association will expect this from you should you decide to go that route. Oh, and before I forget, they offer courses online for those looking into starting a small business and you should definitely take a look here: SBA.gov "Online Training"
Another way to acquire the startup capitol you need for a business like the franchise example we are using here is through private investors and in this case, to be more specific "angel investors". These are individuals and/or groups of individuals who were also entrepreneurs but they hit the "big times" and are now looking to make their money go to work for them by investing in people like you. They often want to play a considerable role in the decision making in the beginning and rightly so considering they have an "interest" in your success.
" Most new jobs won’t come from our biggest employers. They will come from our smallest. We’ve got to do everything we can to make entrepreneurial dreams a reality." Ross Perot
Want a small business at home that takes no financing?
Many have done it, more will and you can to, on the internet.
According to the chart at
Internet World Stats .com , the internet has grown in users from less than one half of one percent in 1995 to almost 1.5 billion as of June 2008! The United States claimed the largest number of users until 2008 until China came onto the internet scene. Never before has an individual had the opportunity to reach so many people, giving anyone with a computer, the chance to make money, a lot of money online.
You can start out very small and grow into a multi billion dollar corporation on the internet. It was proven by 2 guys at Stanford University when in 1994 they turned a hobby into one of the worlds largest companies. I won't go into details but basically they spent a lot of time on computers and began to keep track of all the links they visited by putting them into catagories and sub-catagories to make it easier to surf the web. This year, (2008) Microsoft offered to buy their "hooby" for $44.6 billion! Yahoo was the company and their founders were, David Filo and Jerry Yang. This is just one example of many internet business ideas, to show the possibilities offered to you online. More about their story can be found here.
Larry Page and Sergey Brin were also students at Stanford (computer science) and also ended up profiting nicely on the internet. BackRub was an early search engine that began at Stanford then changed course and set up an office in the garage of a lady named, Susan Wojcicki (Sergey's sister-in-law). With the change in the workplace also came a new name; Google, a play on the mathematical term, "googol" which is the number 1 followed by 100 zeros. No need to tell you the rest of this phenomenal success story.You can read more about the history of Google here.
Though both of these examples did receive some financing for their endeavors, it was a fraction of the final rewards and proof that though you can start a business at home with very little start-up money, get a loan if you feel you should.
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