Category Archives: Money

Starting a Business

Many individuals have a dream to start their own business. They have a business idea and want to make their dreams come true by starting their entrepreneurial adventure. Ideas, business sense and time are all required to make this happen but a major factor in starting a business is money. A lot of money is needed to jumpstart your ideas.

Some people are blessed with already having startup funds either by saving, inheritance or previous success. However, for most of us, it is required to take on a source of debt to start your business. Below are examples of different sources to help you in your journey.

Loan

The most popular form of debt for a business to start is a loan. Most loans are an offered product from a bank but some people take on loans from investors.

When an individual or business offers funds for you to borrow, it can be referred to as a loan. When someone does this they typically ask for a percentage of ownership in the business. They are taking a risk on your idea and think you will succeed so ask for this in return.

If you do not have individuals lending you money, you must go to a bank to acquire a loan. There are many things you need to consider when you apply for a business loan. In order to be approved for a loan, you and your business need to have good credit. If you do not have good credit than you may not be approved or you may receive a high interest rate. In some cases, business owners have people co-sign the loan in order to allow them to be approved. It is also important that you evaluate if your business should even take on the debt. Taking on debt is a major responsibility and can affect your credit if not paid back in a timely manner.

Credit Cards

An easier form of funding for a business is a credit card. The total dollar amount will be smaller than a loan but it can help you afford smaller start up costs. The application process is a lot easier than applying for a loan, however the standards as to which you can be approved are similar. You still need to have good credit. It is best to shop around for the best interest rate and rewards to make it the most economical.

Line of Credit

Another form of debt that can be acquired to start your business is a line of credit. A line of credit is basically a combination of a loan and a credit card. You are approved for a sum of money and you can tap into it/pay it back however you like. An advantage to this product is its flexibility. Your business can be approved for a certain amount but you do not necessarily need to use it. This means that you only spend the money that you need to and aren’t tempted to spend the whole lump sum.

Overall, there are many resources out there for businesses to tap into. If you have a business idea and want to follow your dream, look into any of the products above to help make it happen.

3 Jobs for Stay at Home Moms

Being a stay-at-home mom means working all day with the kids and supplementing that with some additional income. In these situations, employment must be flexible enough to work around kids’ schedules while also being steady enough to add to the household financials.

Work as a Freelancer

The work isn’t glamorous nor is it always the best paying. However, working as a freelance writer, artist, or photographer can give you the freedom to work in the field where you excel while still focusing on your family. With the rise of the e-society, freelance work has become increasingly accessible. One of the best ways to get work is to do work. For writers, Upwork is a great resource. For those with an IT background, Sologig can help you find some work. Finally, there are more generalized websites that incorporate multiple different areas where companies are looking for contract workers that fit their needs. Having a portfolio of your work available for prospective clients can also help snag that position that looks great.

Become a Children’s Party Planer

Think about all the times that you’ve wanted to have your kid’s party at your house or a park but had no interest in planning it. All moms feel this way, meaning that there’s a market for children’s party planners. If you’re already a mom, you’ve got a built-in clientele of playground friends, local friends, and school friends from which to pull. In addition, going to local libraries or kid-friendly businesses and asking to leave cards or fliers can help find clients. As a parent, you already know kids’ likes and the current kid trends. Startup costs can range depending on what services you want to provide. The good thing is that you can start out small and then move into more sophisticated services as you build a stronger clientele. Meeting with entertainers takes some work, but often local clown, magicians, and storytellers will be more than willing to work with you so that they can also broaden their connections. For people who are organized and love throwing parties, this job can be not just an income but a calling.

Open a Beauty Business

Although the beauty business is increasingly male, women still dominate the market. If you’re looking for something that is both fun and takes up little space in your home, opening a beauty business is the best route. Miskn, beauty business offering pigmentation removal in Perth, Australia, is a good example of a successful business model. Focusing on women as its main audience, independent of age and needs, the business doesn’t fall short when it comes to transforming local factors into opportunities. MIskn’s success lies in its branding. Once you source successful products like Miskn’s Lycogel and Medik8, the key is to tell your own story. Focus on public relations and marketing to build your clientele. With the ability to work after traditional business hours in a market on the rise, this might one of the least considered but most profitable options.

 

Being a stay-at-home mom doesn’t mean being unable to bring in an income. In order to be a successful work-at-home mom, however, you need to find the right career path for yourself that matches your family’s needs.

3 Ways to Ensure Financial Security in a Family Business

Running a family business can provide a sense of independence but can also come with financial obstacles for which you need solutions. This means that before starting a small business with family members, you want to plan for the difficulties inherent in setting up the financial side of the business.  Despite having a great product or idea, you need to assess the potential risks of your future growth and accommodate accordingly. Moreover, setting boundaries at the beginning to alleviate financial problems down the road.

Get a Business Advisor

A business advisor can help the family alleviate the hardship in personal relationships that come from a shared financial responsibility. A business advisor can help your family make the right decisions to plan for the future of your business. For example, many times the family business will have multiple generations working together. In order to segregate finance ownership and management succession without inter family arguments, a business advisor can help set up documentation to ensure equity in the ongoing management of the business. When searching out a business advisor, you need to follow a few guidelines. First, you want to have a plan for the current state of the business as well as the future of the business. Second, referrals are your friend, especially if those referrals come from other family members. Third, make sure that the professional you choose can work with all members of the business not just you. Being able to work with all the different personalities from family to key employees is a must.

Determine the Risks

Even though you have an advisor, you want to make sure that you are aware of the different kinds of financial risks that the business may create. This is why choosing the right advisor is important. An advisor needs to be able to talk to the family while also making an emotional connection. While the idea of risk management seems outside the realm of finances, the business needs to consider the monetary contingencies in the event of a founder’s death. The business advisor should be able to help create a written plan to determine where wealth would go and who would be in charge in the event of a leading family member’s sudden absence. This not only helps protect the business’s finances but can help the family members in a time of stress.

Separate Finances

Running your own business often means that there is a gray line between business finances and personal finances. Perhaps you’re out to dinner with a family member who also works for the company. If you’re talking about business, is this a private dinner or a family dinner? This is when things like intelligent financial solutions. Keeping finances separate becomes even more important in terms of protecting yourself from inappropriate use of company finances. When family members are the employees, it becomes even more important to use intelligent banking services like those provided by NextPayments so you can use one account to manage the salaries of all the employees or transfer money into your spouse’s account without worrying about being accused of misappropriating funds.

 

Protecting the family business’s finances is more than just a money issue. For a business that relies on strong relationships, taking the stress of money out of the interpersonal can make the professional stronger.