Author Archives: Brandon Cunningham

How To Raise Capital For Your Home Based Business

One of the major challenges of starting or expanding a home based business is lack of sufficient capital. But if you have a good business idea, you can overcome this challenge by finding out the most suitable strategy of raising capital for your home based business and applying it. You can use any or a combination of the strategies below to raise capital for your home based business

Strategies for raising capital for your home based business

  1. Family and friends

g6h7jkiuyjMany people overlook family and friends not knowing that they can be their biggest and most convenient financiers for home based businesses. People make the mistake of approaching family and friends inappropriately with the assumption that they will easily give them money because they know each other well. To raise capital from family and friends, pitch your home based business idea to them the way you could do to any other potential investor or lender. Have you business plan, facts and projections prepared and show them your seriousness and commitment to make the business successful.

  1. Traditional loans

Getting a loan from a bank, credit unit or other financial institutions is another reliable way of raising capital for your home based business. These loans are given at an interest rate and most local financial institutions are willing to give loans to local entrepreneurs. If you decide to borrow a loan from a financial institution, get your business plan and paperwork ready then approach the lender. You will also be advantaged if your credit rating is good.

  1. Microloans

These are small loans that are faster and easier to get compared to traditional loans. The loans are meant for businesses that have limited access to other funding sources. You can raise capital by approaching Small Business Association (SBA), which can help you with resources on how to get a business grant or microloan from third party organizations and businesses.

  1. Crowdfunding

fg546yuthThis has become one of the latest alternative ways of raising capital for different types of businesses, including home based businesses. The method entails raising capital from the general public, mainly individual investors, through the internet. Crowdfunding can be donation-based, reward-based, equity-based or debt-based, hence it is you to choose which one to use. When using this method, you need to prepare your business plan, pitch, projections and provide all necessary information. You should also look for a crowdfunding site that meets your specific business niche. Most importantly, you have to market and promote your business idea and fundraising campaign so as to make it visible to many people and attract many potential investors.

How To Lower Expenditure In The House

Many people and households are faced with the challenge of reducing house expenditures. This is a major problem in personal finance and the only way of overcoming it is to learn simple but important ways of lowering expenditure in the house. However, it is not always as easy as it may sound. The best way to start off is by writing down all your house expenditures and finding out what you can do without, change or reduce. The tips below are a few of the simple, practical and effectives ways you can use to lower expenditure in the house.5g67uimynjh6

Top tips for lowering house expenses

Reduce electricity bills

Electricity bills are among the highest house expenses. You can lower them by turning off lights when people are not in the room, capitalizing on day lighting, unplugging unused appliances, running major electrical appliances during off-peak periods, drying laundry on clothes line, using a fan instead of air conditioning, using gas appliances instead of electric appliances, replacing light fixtures with energy-efficient ones, and buying appliances that are more energy efficient. You can also compare prices among electricity providers and choose the one that offers the lowest rates.

Reduce transportation costs

You might be spending a lot of money on car fuel, maintenance, insurance and parking, which are skyrocketing your home expenses. You can reduce these expenses by using public transportation, carpooling, cycling or walking to and from work, shopping, school, etc. If you are in a major city, use services such as Uber and ZipCar as they are pocket friendly and more convenient. You can also sell your car if you are not using it regularly, and if you must own a car then keep it properly maintained at all times.

Reduce food costs

4et5yu67i8uihuyA lot of money also goes to food. You can reduce food expenses by cooking your meals at home and in bulk. Freeze and pack some of the food for lunch. Always us coupons when shopping for food and always purchase nonperishable items, eliminate or reduce takeaway food or eating in restaurants, start a home garden to grow vegetables, purchase generic products, avoid those pricey drinks, and always check the fridge and cupboards before you go shopping for groceries so that you buy only what is required.

Review your internet and phone bills

If you have a landline, just drop it and go mobile. Check your phone and internet usage and shop around for the most suitable and cost effective package and plan. There are several carriers offering discounts. You can also combine your internet, cable TV and phone service so as to get better discounts.