Many people’s dream job involves working for themselves. The lure of setting your work hours and being your own boss has magnetic appeal. But behind all of those wonderful pluses of being self-employed is the reality that it takes money — and lots of long hours — to launch a successful small business. Once you decide this is the career path for you, detailed planning is necessary to make that dream come true.
If you are currently working and have a steady, income source, look at your budget to see if part of those earnings can be put aside to grow and finance your small business. Look for the best available rate of return to have those funds grow as quickly as possible. Do you own a home? You may be able to refinance or get an equity loan, and if these funds are specifically for your business and you have a paper trail to document that loan proceeds were used for the business, the interest can be deducted as a business expense. Some retirement plans allow you to borrow against those deposits. Check the provisions of your plan to see if that is allowable and what the repayment terms might be.
The downside to doing this is any money you withdraw that is not repaid on time could be not only taxable, but subject to Internal Revenue Service penalties.
You can use credit cards for both purchases and cash advances-but due to potentially high interest rates, credit cards should be used cautiously. Some cards charge no or very low interest at the beginning, but have provisions for a dramatic jump if payments are late or not paid off by the expiration of the special rate.
Starting up your small business can be challenging during its inception phase. In life, there will always be risks. You’ll realize later on that gambling on something with a great vision will always turn out for the best. Just have some contingencies as always. Shaping up you small business will surely be a breeze and you’ll reap boundless benefits from it.