By Randy Duermyer, About.com Guide
Step 9: Consider Your Break Even Point, Your Cash Flow and Your Funding Options
There are several issues questions you need to consider with this step:
How much will you need to pay your bills until the money starts coming in from your home business?
**Will you be keeping your full-time job or is there another breadwinner in the family that can help you until you develop an income stream?
**What will your continuing outlays be for items like equipment, salaries and/or inventory?
**How many products must you sell or how many hours of service will you need to provide before you reach the break even point?
**Where will the money come from? Will you need to borrow or draw down a savings account or sell some investments and/or assets?
**Will you need a silent partner to help provide working capital, especially until you reach your break even point and being making a profit?
**Are you willing to use your home equity to finance your business?
**Have you checked into SBA loans from the U.S. Small Business Administration?
**Is there any possibility of getting a grant to start your business?
Knowing these answers will help you decide if you can act now. If not, it can also help you to plan to secure the money you need and help you set a target startup date.
Step 10: Gauge Your Family's Support for Your Home Business
Hopefully you won't leave this step for last, but doing so won't diminish its importance.
Members of your family, at least those still at home or any family members who may need to make sacrifices or lifestyle changes in order to accommodate your business, need to know what you're up to and how it might affect them. If you have a spouse or significant other or children living with you, your home business will be a big part of their lives too.
Communication is key to helping them understand. Ask for their support – you'll find that's much more effective than demanding it. Try to understand where they're coming from. If they have questions, issues, or objections, discuss them openly. Caring and open discussions now help you avoid problems later.
Couples who plan to operate a business together need to have a pretty good idea in advance if that will work for them. It's a good idea to discuss who will be responsible for specific tasks. If you can't agree on this now, there's a very strong likelihood you won't agree on it later.
Don't let your business damage your family relationships. We all need an occasional getaway and we all need to keep our priorites straight.
A strained family situation is bound to show in your business activities - work hard to keep everyone happy!
Step 9: Consider Your Break Even Point, Your Cash Flow and Your Funding Options
There are several issues questions you need to consider with this step:
How much will you need to pay your bills until the money starts coming in from your home business?
**Will you be keeping your full-time job or is there another breadwinner in the family that can help you until you develop an income stream?
**What will your continuing outlays be for items like equipment, salaries and/or inventory?
**How many products must you sell or how many hours of service will you need to provide before you reach the break even point?
**Where will the money come from? Will you need to borrow or draw down a savings account or sell some investments and/or assets?
**Will you need a silent partner to help provide working capital, especially until you reach your break even point and being making a profit?
**Are you willing to use your home equity to finance your business?
**Have you checked into SBA loans from the U.S. Small Business Administration?
**Is there any possibility of getting a grant to start your business?
Knowing these answers will help you decide if you can act now. If not, it can also help you to plan to secure the money you need and help you set a target startup date.
Step 10: Gauge Your Family's Support for Your Home Business
Hopefully you won't leave this step for last, but doing so won't diminish its importance.
Members of your family, at least those still at home or any family members who may need to make sacrifices or lifestyle changes in order to accommodate your business, need to know what you're up to and how it might affect them. If you have a spouse or significant other or children living with you, your home business will be a big part of their lives too.
Communication is key to helping them understand. Ask for their support – you'll find that's much more effective than demanding it. Try to understand where they're coming from. If they have questions, issues, or objections, discuss them openly. Caring and open discussions now help you avoid problems later.
Couples who plan to operate a business together need to have a pretty good idea in advance if that will work for them. It's a good idea to discuss who will be responsible for specific tasks. If you can't agree on this now, there's a very strong likelihood you won't agree on it later.
Don't let your business damage your family relationships. We all need an occasional getaway and we all need to keep our priorites straight.
A strained family situation is bound to show in your business activities - work hard to keep everyone happy!
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