Skip to main content

Raiding the Piggy Bank

Tradition in my family dictates that every pink and perky baby receives a coordinating pink and perky piggy bank. Some piggies are plump and some are petite. Other piggies are silent when coins drop and some oink up a storm. Some require a hammer to share the wealth while others just require a twist of the fingers. My child’s favorite is the bottomless piggy bank where money goes in and it comes right out again in a never ending stream of cash.

As a business owner, knowing whether to choose a piggy bank that is plump or petite, silent or loud, locked up tightly with strings attached or open ended is an important step in building your business. When it’s time to pick a piggy, consider your type of business, financial need, credit history and economic conditions. Options for financing include:

Self-Funding

If your start-up costs are minimal and you want to keep financial entanglements to a minimum, reaching into your own pockets to fund your business may be a good choice. Self-funded companies work well when your overhead is low, you have enough seed money to support most of your day-to-day operations for at least a year, and your debts are limited.

Third-Party Financing

Third party financing may be an option if you have a good credit rating and have start-up and operating costs that you cannot cover out-of-pocket. Lending options and terms vary by bank but some financing plans to investigate include:

  • Small Business Administration Loans
  • Bank Lines of Credit
  • Bank Loans
  • Grants

Investor Financing

Another option for funding your business is to seek investors. These are people such as family and friends and angel investors who will provide you seed money with the expectation of receiving a financial return on their investment.
Learn more about managing a home business in Managing Your Business the Toddler Way by Michelle Novak.
Labels:

Comments

Post a Comment

Popular posts from this blog

Responsible Record-Keeping

Maintaining your businesses financial health is a combination of planning, organization and financial management. Many businesses have been sunk by bad record keeping. Here’s an example. A dear friend, who happens to be an accountant, hired a furnace expert to solve a heating problem. He came to her house, identified the problem and quickly got to work. The repair took a short time and her furnace worked marvelously. She thanked the repairman profusely and sent him on his way. He told her the bill would arrive in the mail. Two weeks passed. No bill arrived. Another week passed and no bill. She called his office to remind him to send a bill. Another week passed and she called again. The bill never came. Bad business? Yes. Rare? No. Ask a dozen people and you are likely to hear similar stories. If a client has to ask you multiple times for an invoice, your business is doomed. A few simple steps when you start your business will save you headaches and lost business down the road. First,...
Post a Comment
Read more

A Moment in the Life of a Homepreneur

I was at home preparing for a big meeting when I noticed my flash drive was missing--and with it, my presentation. I had put the drive on my kitchen counter next to my portfolio and cell phone--but it had disappeared. I looked everywhere. It wasn't under the bread bag on the counter, or the pile of refrigerator letters on the floor. I checked the kitchen table which was still covered with breakfast dishes. Nothing. Then I went up to my child's room. She was in the middle of imaginative play and I rudely interrupted her by opening her bedroom door. "Have you seen my flash drive?" I asked in a panic. "No," she said. I was nearly in tears. This was the biggest meeting of my career. I had five minutes to get out the door, and the tiny drive was missing. Then I looked at my child's toy. She was galloping a horse through a field of blocks and string. Around the horse's neck was a bridle made of bright blue ribbon. At the end of the ribbon was my fla...
Post a Comment
Read more

Customer Loyalty is Up for Grabs

Recently, I contacted a dance studio via the business’s Web site for information about dance lessons for my child. After several weeks the company emailed a brochure with upcoming classes. I picked the class I wanted and sent the company an email asking how to sign-up and pay for the class. No response. I sent a second email. After receiving no response again, I called the gym down the street. They answered their phone and signed my child up on the spot. I’d like to say that this experience is rare, but it is unfortunately too common. Customer service seems to be a lost art at many businesses, but it is one that can mean the difference between repeat business and no business. Something as simple as responding to an email, honoring an appointment, and even saying hello when a customer walks in the door can make all the difference in a business’s success. As a business owner, it’s easy to say that customers will stick around because they need the product or service a business is sel...
Post a Comment
Read more