A huge number of small businesses start as home-based businesses. This is also the most challenging stage of a business, where entrepreneurs must face a flurry of issues – getting clients, hiring right, and finding the right type of financing. When it comes to getting funding, home-based businesses don’t have many options since they don’t have the assets or the track record required to qualify for conventional bank loans.
Today, alternative lending institutions offer easy business loans to home-based start-ups across India. Once you get start-up loan for your home-based business, it’s time to put the money to good use. Here’s how you can use the loan amount for your home-based start-up –
One of the key challenges of a start-up is getting the word out there i.e., marketing. Even if you have a great quality product or service, you can’t grow your business if you don’t market it. There are multiple ways to market – offline and online. Both require a good amount of investment, which you can take from your business loan. Use the loan funds to create a website, run ads on social media, put up online advertisements, print and distribute pamphlets, participate in trade shows, etc. Whether you go the online or offline route to market your business, you will need funds and your business loan will be just right for the purpose.
2. Expanding Operations
You can also use your business loan to expand operations. This can be as simple as getting your own office or adding more inventories, opening an outlet, and so on. The start-up loan amount can also be used for acquiring more clients, engaging more vendors, etc.
3. Hiring Employees
If you want to grow your business, you certainly need adequate and skilled manpower. Even if you have the best idea in the world, it can’t be a full-fledged business without the right team. However, hiring talented people comes at a high cost. Use your start-up loan to get skilled people on your team. This will also help you expand your business rapidly. Start-ups can avail business loans offered with no collateral requirements and with structured EMI options.
4. Investing in Technology
Your start-up can use a business loan to expand itself – If you use the right technology to run your home-based start-up, you can grow it even faster. But investing in technology takes capital. This is where a start-up loan can help you invest in computers, software, and other technology that is important for your business.
5. Why Get a Small Business Loan for Your Home-Based Start-Up?
If you run a start-up from your home, you definitely have plans to expand it and get an office of your own someday. To do so, you need adequate financing at the right time. Get a business loan and take a stepping stone towards your start-up’s success. If you’re wondering how you’re going to pay it back, use a simple online tool such as the business loan EMI calculator to get a sense of your monthly repayments.
So, if you’re an Indian citizen between the ages of 21 to 65 with a solid business plan, then do not let a lack of funds hold you back! You are eligible to apply for a start-up loan. Lending institutions gladly offer business loans to start-ups to encourage their growth. Since start-ups are the future of an economy, fund yours with a start-up loan without delay!