How To Get Money To Start Home Based Business

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To start a home based business, you need money. You might be thinking why we are telling you this. Doesn’t everyone know this? You’re right. But, according to United States Small Business Administration, the second reason for failure of business is inadequate funds. What’s the first? It’s poor management!
Here, we won’t tell you about effective business management, but will educate you about how to manage capital to start home based business.

You Have Two Choices

There are two choices when it comes to collecting funds for your business – debt financing and equity financing. In order to know the type of financing your business requires, you need to calculate its debt-to-equity ratio. What’s this? It’s the money borrowed in comparison to the money invested in business.

The more the investment, the better your business is for financing. A high equity-to-debt ratio implies that you should go for debt financing. However, a high debt-to-equity ratio implies that you should increase your equity investment or capital to gather more funds to start a home based business....read more

Automated Cash Formula

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