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Starting a Small Home Business
If you are looking to generate some extra income, one of the best ways to accomplish this task is to start a small home business. Home businesses are easier than ever to start up and some can cost less than $100 to get off the ground. Here are some tips.
One of the reasons it is easier than ever to start a small home business is due to the internet. With the advent of the internet, it is easier than ever to communicate with customers, find suppliers, research products and transfer money. For those that would like to start a home based business with the least amount of money down, one suggestion is to sell items on Ebay. With Ebay, you can sign up for a sellers account and start selling immediately. The great advantage of selling on Ebay, is that you can pretty much sell anything. You don’t have to sell new products, many merchants start out selling items from their home- like a virtual garage sale.
Protecting Your Business Against Liabilities
For extremely small businesses, a sole proprietorship is usually the easiest and most effective way to get started, however, if your business plans are significant and you would like to protect yourself against certain liabilities, you should seriously consider incorporating your small home based business or create an LLC (Limited Liability Company).
Having your business legally categorized as a corporation or LLC can protect your personal assets from lawsuits, your company’s bankruptcy, and other liabilities. Under a sole proprietorship or partnership, if things go wrong, you are responsible and can incur a financial loss.
Another thing to consider when starting a small home based business is business insurance. While you probably don’t require business insurance if you are selling a few items over the internet, certain small businesses do. For instance, some businesses such as cleaning services or a food service may require business insurance in the event that you or your employees are responsible for damages. Business insurance is usually affordable and in most cases quite easy to attain.
It should be noted that while starting a small home business is simple, there are several things you should take into consideration. First off, any profits you make from your small business must be reported and taxes must be paid.
While it is extremely easy to keep track of profits when you sell only a few items per week, if your small business really takes off, you will usually require the services of a book keeper or accountant.
Are you a good person with bad credit and looking for a loan? Have you been declined because you have late or defaulted repayments? All is not lost even if the bank doors shut. For a person with bad credit it may seem impossible to get a business loan or business cash advance and start your own business. But that is not always true. Although banks are almost out, as they tend to be more cautious of their investments, they are less likely to offer loans to those with bad credit ratings. But business is a vast game and banks are not the only lifeline to your business. Use the application below to see if you qualify for a business cash loan or advance.
What to do?
Separate personal credit from business credit. If you have bad personal credit it will spill over into your business credit. Once separated, you can get the funding you need without the personal credit pulling you down.
Even if smaller lenders come to your rescue you may end up paying a much higher rate of interest, as financial regulating authorities allow them to charge a much higher interest rate than regular banks can charge for the simple reason that they are taking a higher risk.
Secondly, the severity of your bad credit may be your savior, if the credit history is not disastrous, your interest rates may be lower. With assets such as savings or a 401k, it shows you have the capacity to put away money and not squander it.
Also, there are loan plans for applicants who have court judgments against them and are mortgage arrears; if you have the equity in your property the chances are that a loan plan can be just made to fit you to perfection.
So, missing a few payments on your current credit payments is not such a bad thing after all? Be clear in your mind and before approaching a lender it is important that you have a clear understanding of what the loan will be used for and then make a sound presentation.