Click to Print

Best Sources for Homebased Expansion Capital

Consider your options when raising money for your homebased business.
June 21, 2004
URL: http://www.entrepreneur.com/article/71462

Q: My business is homebased. Will I be able to raise expansion capital?

A: Just because you own a homebased business doesn't mean you're out of luck when it comes to raising money from traditional sources. In fact, banks and investors generally don't care where you run your business, as long as you're making money.

Back at my old company, NetCreations, we got a $100,000 credit line from Citibank when we were still a five-person business operating out of my house. All the bank wanted to see was our previous years' tax returns and a list of our accounts receivable (customer payables). The same goes for investors, especially those who invest in startups and early-stage businesses. In fact, a savvy investor may like the idea that you're saving money on office space and investing it in people and products instead.

Here are five road-tested strategies to raise money for your homebased business:

Rosalind Resnick is the founder and CEO of Axxess Business Centers Inc. , a storefront consulting firm for startups and small businesses. She is a former business and computer journalist who built her Internet marketing company, NetCreations Inc. , from a two-person homebased startup to a public company with $58 million in annual sales.


The opinions expressed in this column are those of the author, not of Entrepreneur.com. All answers are intended to be general in nature, without regard to specific geographical areas or circumstances, and should only be relied upon after consulting an appropriate expert, such as an attorney or accountant.