subject: Starting a small home busines [print this page] Starting a small home busines Starting a small home busines
How can you convince lenders to give you the money you need to get started?
Your personal credit, finances, and assets are going to be a large part of your ability to gain approval for a loan. Since your home business is now a part of your personal life, you are now placing your home and other things at risk. Here are some things you need to have at hand in order to convince a lender to offer you financing:http://www.ixgw.com/2010/06/starting-a-small-home-busines/
A high credit rating. For approval you want to have a credit rating of at least 750.
A college education. Like it or not lenders want to work with people that have a college education. This is because they are seen as a valuable member of society that is less likely to default on a loan.
Low debt ratio. Lenders don't want to work with a person that has a lot of debt. You need to reduce your debt ratio as much as possible in order to show a lender that you need the money to start a business and that you can repay it easily.
A good business plan. Even though you are going to have your own home business and you are going to work for yourself, you still need to have a business plan. The business plan will keep you focused and on task. It also shows the lenders that you have some credibility and you are going to make this small home business into a successful entity.
Can you do it?
When it comes to running a business can you really do it? You aren't going to have someone pushing you forward all the time, you need to push yourself. Do you have the motivation to push yourself and make the business successful? Can you set your own hours and work hard to accomplish your goals each week. The fear of failure is extremely difficult to overcome when you are worried about working from home and acquiring financing for your business.
Persistence
To make a home business work you must be persistent. It can take upwards of 12 months or more before you start seeing profits climb upwards for the business. You need to be persistent when it comes to running your own home business. There are going to be ups and downs when it comes to running your business and you need to have the motivation and persistence to keep working hard and moving forward.
Marketing
To become successful as a home based business owner you need to have strong marketing skills. You must work hard to get your name out there. This means you need a website and other things to get people to find out you have a business and you are starting to make your mark in the industry. Social media sites are a great way to interact with your customers and it's a wonderful way to earn credibility in the industry. As you focus on educating your customers about your company and your industry, you need to work on building a positive image.http://www.ixgw.com/ Best Financial Advice - Financial Planning | www.IXGW.com
