Small Business Financing

A Home Business Article Contributed by Barbara Gibson

Small Business Dollars and Sense

Whether you are considering or just launching a small business, you are probably learning about stretching a dollar. Learning to do more with less, prioritizing and creative financing will be skills you will need to develop, if you haven't already.

Looking for money to finance or support a small business? Try one or more of the following:

1. Home Equity Loans

2. Postponing small business launch until you save the needed capital

3. Paring your lifestyle and budget so that you can survive on one income, if you

have a spouse or partner.

4. Credit cards (not a great option)

5. Launching your small business on a part-time basis

6. Small business grants and loans

7. Barter services or pawn valuable items

8. Sell some stocks or bonds

9. Consider contracting on the side first

10. Be fearless about charging for the full worth of your work or service

11. Ask for a deposit first

You will probably think of other options. The key is to plan. If you are committed to starting a small business, don't let lack of capital be a stumbling block. Also, consider launching your small business in phases or with a partner. There are countless ways to navigate financial obstacles you just have to look for them.

Making the Most of Small Business Dollars

You may not be able to join every association or subscribe to every journal right away. You may even need to launch your small business from your kitchen or garage. That's okay. Use your business plan to help guide and prioritize your expenses. For example, you may choose to rent an address, or share space so that you can free up capital for inventory. You may choose a part-time employee or student rather than a full-time employee.

Other money saving tips:

Look for banks that cater to small business owners. Free checking accounts and small business advisors can be valuable perks. Pay credit card and other bills in full and on time to avoid late fees. If you cannot pay credit cards in full each month, pay as early as you can to save on interest expenses.

Adopt policies that encourage payment on demand. Repeated invoicing can be expensive.

Establish minimum purchase limits for credit card users.

Consider buying in bulk if there is a price difference, and if your budget allows. If not, consider splitting large orders with other small business owners.

Monitor your inventory carefully.

Again, you can probably come up with many more ideas for managing limited capital. With creativity and focus you will yield results that you can take to the bank.

Small Business Accounting

Every penny that comes into or goes out from your small business must be recorded. There are a number of user friendly accounting software programs.Do your research and choose the one the best meets your needs. Among your considerations should be cost and potential to meet the needs of your small business as it grows. Even if you are comfortable managing your small business accounts, it is a good idea to have an objective eye review your records periodically. Retain your records for five years.