Home based businesses account for billions of dollars being earned every year. It is one of the fastest growing industries, even before the current economic crisis and subsequent massive unemployment.You may arrive at the decision to create some home based businesses out of the need to have a second income, pay off debt, or in order to survive if you become displaced and can’t find a new job.Although they have again extended the period for which you can receive unemployment insurance benefits, they won’t last forever. The best time to get started finding out about home based businesses is while you still have a means of survival to tide you over until you see some income coming in as a result of your efforts.You have to treat a job search like a job, but with some flexibility, which will allow you time to pursue other avenues. The best way is to ‘hedge your bets’ while you are at the mercy of someone else’s decisions about your life. It will give you new confidence and assurance when you take control of your own destiny.Home based businesses may involve your home computer and the Internet to various degrees. The Internet certainly does radically expand your world of possibilities. However people have been earning money from home by various means long before the Internet was introduced to the public.Desperate times may require doing things you never did before, learning new skills, and regretfully even sometimes can mean going backwards on your career path and/or income level. Remember don’t be too proud. Making less money or doing less of a job than you had before is still way preferable to having no income and becoming homeless as a result.If you are in a desperate situation by this time, you may even need to consider doing housework, laundry or gardening to earn some money until you find a job to increase your income and make your benefits last longer.Even creating an income using your hobbies and crafts is a possibility. For example if you can sew, bake, make candles or soap, or make anything that can be sold in a gift shop, this might be the way you could start home based businesses.Home based businesses can also involve distributorships selling various products, or providing services to other private and business customers using your business skills. These can be done both on and offline.

More and more people these days are looking for home based business success – and success generally includes making enough money. Money buys a greater sense of freedom and security. But how do you do it?In his 1960 classic self-improvement book Psycho-Cybernetics, Dr Maxwell Maltz wrote about the BE – DO – GET three-step principle for achieving personal goals. In order to get the results you want, you need to do what it takes. In order to do what it takes you need to be the sort of person who thinks about taking appropriate actions.So it’s a question of thinking backwards. If you want the end result, you need to work on becoming the sort of person who takes the right actions. ‘Begin with end in mind’, was the way Stephen Covey put it in The 7 Habits of Highly Effective People.You can apply exactly the same principle to home based business success. If you want to achieve a certain money goal, it’s critical to know what action steps are needed. But it’s not possible to take these steps unless your thinking is in alignment with those steps.For example, you can find a host of adverts promising inexpensive ways to ‘get rich quick for little or no effort’. These ideas most often don’t work. The initial thinking is wrong because it is based on jumping to the end result with no foundation work.Then you get the other end of the spectrum where people say that any suggestion of making money from a home business has to be a scam. That can’t be right either. It defies logic. It’s a bit like saying that no-one can ever achieve any goal.Building a successful small business is a creative act that needs the right vision. It also requires focus, hard work and persistence. These are the qualities that home entrepreneurs need to develop. Into that mix you can add ‘pick a good small business idea’, and improve your knowledge on general business principles such as marketing and time management.It isn’t easy but it is possible – and thinking backwards is a great help.

Selecting the Right Home Based Business:It’s hard to ignore the spam messages that promise interested entrepreneurs the opportunity make tens of thousands of dollars per month with a home based business. You must be discerning when deciding on a business opportunity because there are many scams out there. In reality, working from home opportunity can be a wonderful source of additional or full-time income. The amount of success achieved at owning and operating a home-based business depends on the type of business, as well as your dedication to it.1. There are countless established businesses that offer affiliate and partnership opportunities to entrepreneurs. Companies such as Mary Kay and Avon have provided home-based businesses opportunities for years. These business opportunities are attractive to those who are attracted to residual income with unlimited commissions. Under a residual income with unlimited commissions structure, new owners often have no chance of “catching” up with those who joined the business before them. This sometimes creates a treadmill effect where new owners, no matter how successful, with never really achieve the level of success as seasoned and established owners. Business structures that are designed to offer residual income with capped commissions give newbies a chance to achieve success commensurate with their achievements.2. The payment structure is crucial when selecting a home based opportunity but before even receiving the first commission payment, those interested in starting a home business must be careful to choose a company they believe in. Succeeding in business can be challenging, so it will be crucial to have a passion and interest in the service or product in order to maintain a level of dedication through the difficult development stage.3. It is important to be sure the compensation plan is tangible. In many business opportunity orientations, you may hear testimonials of the awesome pay and unbelievable success that have been achieved through the business. These testimonials are often the exception and not the rule. You need to be able to separate the sensationalism of the testimony from the real income opportunity. Will it really be possible for you to make enough money for the effort to be worth your time? If the money you can realistically make will be just a few dollars here and there, you may get discouraged and quit. Often times, there is an initial investment and this could be lost if you quit.4. These are challenging economic times and even well established, thriving businesses are experiencing a decline in sales. It is essential to select a company that provides support for new owners. It will be comforting to know that you are working for yourself and not by yourself. A mentor can help provide guidance and offer suggestions that can help with the profitability of your business. In a residual income with unlimited commissions business structure, your leader may seek to personally benefit from your success, but if your business falls in the capped category, your success and profits are your own. Once you have selected a business you believe in and can live with the compensation structure, roll up your sleeves and be prepared to work hard. Most entrepreneurs do not work a traditional eight-hour days. The amount of success you achieve will be based on the work and dedication you put into your business.5. Lastly, be sure your business can be promoted online. In order to thrive in these times, you must have an online presence. Creating and maintaining a website can be accomplished by even the most inexperienced computer user and there are many sites that offer tech support for users. The benefits of owning a business are unlimited. The freedom one feels from being in the driver’s seat of their success is exciting. There are countless home-based businesses to choose from and it is important to find a reputable company that offers the structure and support you need to succeed.

4 types of viable small business financing

Many small businesses face the prospect of going under if they are not able to secure good financing. The need for quick cash injections to keep a small business running can continue even after the first few loans are acquired. However, with each loan taken it becomes increasingly difficult to get a new loan approved. Also, the number of banks and financial intuitions who are willing to lend money to small businesses are rapidly shrinking.

A regular small business loan from the bank

Before you go anywhere else the first place you should go to is your bank. Banks offer some of the best small business loans which can be used as startup capital or to further expand your business. However, your proposal needs to appeal to the bank in a way that helps them feel that giving you a loan is a worthwhile investment. If you’re just starting out your business plan should go into detail about your business and your experience. This will help the bank understand your industry and how effective you can be. Banks will also require the following details from you:

• Cash flow projections which tells them how they will get paid back and when. These should be honest figures.
• Make sure to add personal financial statements.
• If possible add past business tax returns. This will show how exactly your business has been doing.
• You need to have good credit rating to be trusted. Even though this is a small business loan but you are getting the money. Make sure to add your credit report to the file you send as part of your loan request.

Try finding micro-loans

If you are not able to acquire a regular small business loan you may try to get a micro-loan. Micro-loans allow you to borrow up to $35,000 and they are easier to get. Micro-loans work great as small term capital and for equipment purchases. Because micro-loans may require collateral the best use for it is equipment purchases since then the equipment can be put up as collateral.

Short term supplier credit

This type of loan clearly does not work for every business. So, if you’re not a retailer or a manufacturer then you’ll have little use for it. You’ll usually need to pay back this type of loan within 30 to 60 days. However, you should be aware of the fact that the interest rate on short term supplier credit is very high.

Instant small business loans

Also known as quick cash loans and quick cash advance loans these work great for businesses that are not able to find a loan anywhere else. It is also great for businesses that do not have the required assurances to secure a regular small business loan. These types of lenders will usually process your request within a few days and deposit the amount into your account. In most cases you can apply for the loan directly from the lender’s website. However, because the lender is taking a higher risk of lending you money without due diligence the interest rate is slightly higher than what banks offer.