Thinking about starting a home business? Do you already own
a home business but need cash? Perhaps you can qualify for a
small business loan.

However, before you attempt to borrow any money, you first
have to figure out how much money you need. The easiest way to do this is by putting together a business plan. A good business plan is critical to your business success.

It can be a simple one page outline or it can be many pages, but it should spell out exactly how much money is needed and what it will be used for; your potential market and customers and potential for growth; what makes your business unique from others; and a rational and conservative projection of your business's cash flow.

Your plan will also help you set business goals and define
the steps necessary to help you reach those goals. It is a
guide for you to refer to on a regular basis to help
evaluate your business progress and help keep you focused on
your priorities.

Besides, a business plan is almost always required when
applying for a bank loan. If you need assistance in writing
a business plan, your local library should have several
books on the subject. You can also try Amazon.com. In
addition, you should be able to get help on writing a
business plan from one or more of the sources listed below:

1. The Small Business Administration (SBA) offers numerous
loan programs to assist small businesses. It is important
to note, however, that the SBA is primarily a guarantor of
loans made by private and other institutions.

http://www.sba.gov

2. The Service Corps of Retired Executives (SCORE) is a
volunteer management assistance program of the SBA that
provides one-on-one counseling, workshops, and seminars.
SCORE has chapters throughout the country. Many work in
conjunction with local Chambers of Commerce. SCORE and Visa
have also joined forces to help home-based and small
business owners. Contact your SBA office, local Chamber of
Commerce, or the following websites for more information:

http://www.score.org

http://www.visa.com/smallbiz

3. Talk to your local bank. Find out what they require for a
business loan application and also if they are participants
in the SBA loan programs. Be diligent and shop around for
the best loan packages, and make sure you fully understand
the terms.

4. You may be able to borrow from insurance policies, IRAs,
401k's, stocks and securities, etc. Check with your
insurance agent. Also, investigate what the policies are
regarding borrowing from your mutual funds or retirement
account. Before borrowing, make sure you fully understand
the pay-back terms and any potential penalties.

5. Apply for a home equity loan. Borrowing against the
equity on your home is permitted in all states except Texas.
Just make sure you're diligent about paying back the loan or
you could end up losing your home.

6. If you're a woman, you may be eligible for a Specialty
Loan. These types of loans are now being offered by local
banks. Who knows? Filling out a one-page application just
might get you an unsecured credit line or loan ranging from
$2500 to $50,000.

7. Try borrowing from family members and/or relatives. If
you have a good relationship with your family, perhaps you
can make a persuasive argument for them to loan you money
for your home business. Just remember, borrowing from family
or relatives shouldn't be treated any differently than
borrowing from a bank. It's just as important to pay them
back on time as well.

About the Author

Dean Phillips is an Internet marketing expert, writer,
publisher and entrepreneur. Questions? Comments? Dean can be
reached at mailto: dean@lets-make-money.net

Visit his website at: http://www.lets-make-money.net