American families have had a tough time lately balancing their family budgets, not unlike many of our governmental entities that support our lives. Everyone has been living on a debt structure that must be addressed with forethought, hard work, and persistence before the proverbial light at the end of the tunnel starts to shine brightly once again. For families, cutting costs is the most direct approach, but a “balanced” approach, one that also has an additional income component to it, is a plan that makes more sense in the long run.
Necessity is often the mother of invention, and in these tough times, creativity is definitely needed if generating new income sources is to become a reality. Your present day debt experience has actually prepared you for this possibility by opening your eyes more widely and making you more aware of how to handle debt and to use it to your advantage. If you are thinking about starting a homegrown business, you already realize that you have to spend money to make money, whether it is on inventory, product development, or advertising in your local media.
If you already have excess capital in the bank to use as start up funds, then so much the better, but most of us have committed those funds long ago to maintaining a tolerable lifestyle under trying circumstances. In our current situation, we have already learned the benefits of frugality and how to stretch a dollar for all it is worth. The objective now is to produce a product or service, create distribution channels, and make a profit along the way. Planning and preparation are the keys, and committing to a well-defined financial plan will keep you on track.
Successful home entrepreneurs will tell you that nothing went perfect early on in the process. You must be flexible and keep changing your “formula” until the market responds to your new offering. Along the way, you will need additional funding to grow your idea once it takes hold, generally from the “3F’s”, a euphemism for “friends, family, and fools”. However, many of these people may also be short on cash, and if collateral is in short supply, unsecured business loans may be the only solution for you. Here are a few suggestions:
- Cash advances on credit cards are one form of unsecured debt that, while expensive, can be the bridge you may need until cash flows improve. Be sure to keep your credit lines open in case you need them;
- There are other business firms that provide access to unsecured business loans from a variety of non-bank lenders. As bad as the economy is, there are still a lot of investors looking for good returns in the marketplace. Have your business plan and financial projections ready to impress would-be lenders;
- If you sell a product and have a payment card merchant terminal, there are cash advance solutions that can be tailored to fit your individual financing needs.