Finance options for home based online businesses

The task of starting up an online business is both exciting and daunting. Running a business online is an excellent way to make money in a way that many may seem is low cost. However, there are many expenses that go into starting up a home business online, including:

• Computer and office equipment. A high quality computer with a lot of RAM and hard drive space is essential. A phone, fax machine, and other equipment will also need to be purchased.


• Web design. Because the impression you leave on your customers comes from your website, it's important to have a professionally designed website that is aesthetically appealing and user friendly. These services are often costly.


• Web hosting. A quality web hosting service, with email support, shopping cart, and other features will also have a monthly fee associated with it.


• Licensing. You will have to license and register your business, as well as any other fees. These little fees add up.


• Marketing. Marketing your website, whether it is through direct email lists or other avenues, will be expensive, especially in the beginning when you are establishing a clientele.

As you can see, there are many costs associated with a home based online business.

Finance options for home based online businesses
Once you have priced out everything you will need to start your home based online business, now you will need to go about finding financing for it. The following are finance options for home based online businesses.

Savings
If you have the savings for it, many people tap into their own personal funds to open their home based online businesses. Naturally there is a risk involved, but keep in mind that by doing this, you are staying out of debt from high interest credit cards or loans.

If you use your savings, make sure you are smart about it. Keep some money set aside some for family emergencies, and make sure you will still be able to pay the mortgage and other bills. Starting up a business always entails some risk, but it's important to still have a plan in case the business starts off slow or falls through.

Small business loans
Obtaining a small business loan is difficult, as it requires much more preparation than applying for a car or home loan, for example. Before trying to secure a small business loan, make sure you have a well-thought out and well-prepared business plan, and make sure you have a small presentation ready. You should also know your credit scorebeforehand (if it is low, chances are you won't get a loan and should save yourself the time), your assets, and have your tax returns ready.

Consider bartering services
If you have friends who are good at web design or graphic arts or writing and can do your marketing, perhaps you can offer them something in exchange that would help their business or life. For example, if you have an online tutoring business and a friend who knows how to design websites, you could trade her services in exchange for tutoring her kids the same number of hours. Many people do this to help get businesses going and it is an effective way to save money on business start up costs.

These are just a few of the ways you can successfully finance your online home based business.