Q: I
want to start a business. But I have bad credit, and everything
seems so far off and out of reach (financially and time-wise).
Also, I have a 17-month-old baby at home, and I would hate to leave
her every day. I'm afraid I'll miss important milestones.
I'd desperately love to work from home, but what I've read
about homebased job opportunities suggests I need to invest more
money than I can afford at this time. Is there any hope for me in
the near future? Or should I just save, save, save, and maybe
eventually I'll have enough money to do something I love?
A:
There are several issues here to address for you: bad credit and no
money, finding the right business, and working around a young
child. But this is not a case of three strikes and you're out.
What you will have to do is face the reality of several issues:
First, your bad credit needs to be repaired. If you still owe
money and are having difficulty repaying, look in the government
section of your local phone book for a nonprofit called Credit
Counseling Corporation. The group can counsel you on how to get out
of debt and repair your credit. They can arrange lower payments to
your creditors and sometimes lower interest rates. Depending on the
amount of your debt, it may take three to five years to get your
debts paid off. In the meantime, your finances will become more
manageable.
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Second, once you have a plan for repaying your debts, commit to
putting aside a percentage of what you have left into a business
start-up fund. Anything is better than nothing, so try to commit to
a set amount each payday, even if it means cutting back on
something else. Watching your money grow steadily will give you
encouragement.
Third, be realistic in your plans to operate a business and take
care of a preschooler at the same time. Both require a lot of time
and attention. It may still be necessary to have periodic day care
for your child so you can concentrate on your business.
Also, you didn't mention what kind of business you are
interested in. Several good resources for you to consider are:
- Books about different kinds of homebased businesses. I
recommend The Best Home Businesses for the 21st
Century by Paul and Sarah Edwards. It lists about 100
different businesses being successfully run from homes across the
country. Also, check out a book by Lisa Roberts called How to Raise a Family and a Career Under the Same Roof.
Those and other books are available at libraries, bookstores and
online bookstores for under $20.
- Call the Office of Economic Development in your city and ask if
there's a Small Business Development Center in your area (a
division of the SBA), or find one at www.sba.gov/sbdc.
And, finally, continue to dream and believe in yourself while
taking proactive steps to start your business. Being an
entrepreneur is tough-but worth all the effort. And when you
operate a business from your home, you have to know how to house
your business finances, marketing needs, work and personal life all
under the same roof. With hard work and determination, your dream
of a homebased business balanced with your family life will be a
reality sooner than you think.
Beverley Williams is the founder and president of the American
Association of Home-Based Businesses Inc. (AAHBB) and was the
SBA's 2002 Home Business Advocate of the Year.
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.