| One of the obstacles to having your own home | | | | who has a piece of expensive equipment that you |
| business is lacking the cash to get started. By reducing | | | | need for certain jobs. You can agree with this person |
| startup costs and expenses, you can begin business | | | | to share the profits from those jobs. Then you don't |
| sooner and with less risk. This article shows several | | | | need to purchase or rent the equipment ahead of time. |
| ideas for saving money. Remember, the lower your | | | | After you collect the money from the job, split it with |
| expenses, the higher your profits. | | | | the equipment provider. Presto, you don't have any |
| Deferring certain costs and expenses -- There are | | | | startup cost for this equipment. |
| certain expenses you must pay before starting | | | | Having the customer purchase the job materials -- If |
| business. An example would be a business license and | | | | some or all of your future jobs require expensive |
| insurance premiums. However, other costs and | | | | materials, have the customer pay for them upfront. |
| expenses can be put off until after the business is | | | | This is another way to reduce your startup costs. This |
| operating and making money. These items to be | | | | also reduces the risk you would have if you buy the |
| deferred might include the following: | | | | materials upfront and then the customer backs out of |
| - Getting a business telephone | | | | the job. |
| - Setting up a fancy home office | | | | Buying equipment on credit -- It may be better to buy |
| - Purchasing materials for future jobs | | | | equipment on credit, even with the additional interest |
| - Purchasing all the equipment you might need for | | | | costs. This lets you defer most of the equipment cost |
| future jobs | | | | until you're making money from the business. |
| - Purchasing a new computer | | | | Buying equipment at bargain prices -- You may be |
| - Paying for a big advertising campaign Borrowing or | | | | able to buy needed equipment or furniture at bargain |
| renting equipment instead of buying -- Let's say you | | | | prices. You could go to secondhand stores, unfinished |
| don't expect to use a particular type of equipment | | | | furniture stores, closeout sales, estate sales, and even |
| very often. Then when you do need it, see if you can | | | | yard sales. The equipment only has to last until you are |
| borrow it or rent it. This could save you a lot of money. | | | | making a good profit from your business. Then you will |
| Using sweat equity -- Sweat equity means doing | | | | be in a position to buy equipment that will last longer or |
| things yourself instead of hiring people to do it. | | | | operate faster. |
| An example would be painting your home office. You | | | | Final thoughts -- If you really want your own home |
| could get a how-to booklet on interior painting or | | | | business, use these ideas to help you get going. Use |
| download instructions from the Internet. Then put on | | | | your money wisely. As old Ben Franklin said, "A penny |
| some old clothes and do the work yourself. | | | | saved is a penny earned. |
| Sharing the profits -- Let's say you know someone | | | | |