^{Most Business People Need to Borrow Money to Start a Business. But For the Home-Based Business Person, Finding Startup Money is a Different Ballgame.}

^{If you've recently started a business, more than likely you're in debt. The vast majority of people who go into business usually have to borrow money in order to get started. The money is usually borrowed from a bank or some other type of lending institution.}

^{However, for those in mail order, network marketing or some other type of small home business, the process of obtaining startup money is somewhat different. Banks don't lend to people who go into those types of businesses. Why? The figures speak for themselves. The majority of people who go into mail order or MLM don't last very long and they don't make any money. If there is no money made, the banks can't collect on their loans. Even if you only want to borrow five or seven thousand dollars to get your business started, the bank won't lend it to you. You're considered to be a bad risk.}

^{Those who want to work from home in their own business have to find other ways to raise the money to get going. So what's the answer? Where does the money come from?}

^{Some people will borrow their startup money from family or friends. Other people may put aside money each month from their regular job until they save enough money to get their business started. Startup money could also be borrowed from a credit union. A person could also work an extra part-time job or do some other kind of fundraising activity. For example, some entrepreneurs hold several garage sales/flea markets or offer their services in any number of other ways to get the money to start their small business.}

^{If you are starting a mail-order or network marketing business that requires only two or three thousand dollars to get started, you should make every effort to get the capitol you need without having to borrow it. That way if things don't go as you expected, you won't have to worry about paying anyone back money that you don't have. I realize that you should go into business with a positive attitude, but we must also consider that things may not work out as we planned them.}

^{Something that you should never consider doing is trying to start your business using a credit card. Credit card debt is one of the worst kinds of debt that you can get into. Once you start using that little plastic card to get what you need, before you know it you've charged yourself head-over-heels in debt. Using a credit card to get money to start your business is a BAD idea. Avoid it at all costs.}

^{Considering how you'll get the money to start your business is very important because startup money means just that-- "start up." It's only money to get you started.}

^{But once you get your business started, what are you going to do if you need more money to keep it going? Most people who start a home-based business don't have prior experience and don't understand that the profits don't start coming right away, if they come at all. This is one of the main reasons that so many would-be entrepreneurs fail. They felt that the startup money was all they needed. When that money ran out, they wound up out of business and in more debt than they were in before they got into business.}

^{Many people have found themselves in a lot of debt because they tried to start a home-based business that didn't work out for them. Being in business and being in debt go hand in hand. The problem for many people is that they have not prepared themselves for the fact that when you borrow money, YOU HAVE TO PAY IT BACK!}

^{If you're planning or have already started your own small home-based business, here are a few things you might want to keep in mind:}

^{1. Don't start your business until you're ready. Make sure your startup money can carry the expenses of your business for at least three or four months (or longer).}

^{2. Prepare a budget and include all of your business expenses, no matter how small.}

^{3. Always keep an eye out for ways to save money on the things that you need to run your business.}

^{4. Don't buy what you don't need.}

^{5. Keep accurate records of every penny you spend.}

^{6. If you have to borrow money to get started, be sure that you have a way to pay it back if your business fails.}

^{If you're a true entrepreneur, you won't let failure stop you from trying again. However, if you get yourself into a lot of debt, it can be difficult to get things going again. Don't try to borrow yourself out of it. The only real way to get out of debt of any kind is to increase income or to decrease outflow. If you have to work an extra job to get yourself out of debt, DO It! If you have to cut back on doing some things that you enjoy doing, make the sacrifice.}

^{You do take a financial risk when you try to start your own home-based business, but if you plan carefully and spend your money wisely, you won't have to worry about getting yourself into more debt than you can handle.}

^{G.H. Bey offers free advice to mail order and MLM beginners. You can contact him at (412) 363-7187. You can also request his latest 12-page report , THE 12 MASTER KEYS TO BUILDING A SUCCESSFUL, PROFITABLE MAIL ORDER BUSINESS. Just send two first-class stamps to:}

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7023 Hermitage St
Pittsburgh, PA  15208-1110
   

      

         

            
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