| Have you decided how you're going to finance | | | | be willing to risk your assets if you expect others |
| your home daycare? When starting a home | | | | to risk theirs. |
| daycare there is no true fixed amount as to | | | | To find banks in your area look in the Yellow |
| home much its going to cost you, but be ready | | | | Pages. You can also request a referral from a |
| to spend any where from $1000 to $5000 to set | | | | trade association, management consultant, |
| up shop. I believer start up cost for home | | | | attorney, accountant, friend or relative. |
| daycares differ from owner to owner. What you | | | | Government Agencies |
| may want to implement in your business, the | | | | Government agencies offer individual financial |
| next provider may not want to do the same. | | | | assistance to small businesses. Many loan |
| If you don't have enough money you can start | | | | programs, administered under government |
| by looking to other sources such as these: | | | | guidelines and funded by the government, are |
| Private Sources: | | | | available. There are plenty of programs out there |
| The most common private sources can range | | | | to assist different businesses. |
| from your own funds, to family, and friends. | | | | Keep in mind that getting help from government |
| What are the advantages of investing your own | | | | agencies will require about the same amount of |
| money? | | | | work as going to a bank, you will still have to putt |
| 1. There are no finance charges | | | | up collateral |
| 2. Your search for additional funds is minimized. | | | | For an up-to-date list of loan programs and their |
| What are the disadvantages of investing your | | | | requirements, contact your local Small Business |
| own money? | | | | Administration (SBA) office (for information on |
| 1. You lose the interest you could be earning on | | | | federal loan programs) or your state economic |
| your money | | | | development office (for information on state |
| 2. You lose your savings that could probably go | | | | loans and grant programs). |
| towards any future emergencies. | | | | Grant Programs |
| Borrowing from family and friends can provide | | | | Grants are sums of money provided to |
| several advantages such as: | | | | businesses without a repayment obligation. Grants |
| 1. They are less likely to make demands on your | | | | are generally reserved for research and |
| style of management | | | | development and nonprofit organizations; but |
| 2. There is no legal limit on how much you can | | | | many home daycares qualify for grant programs. |
| borrow | | | | There are private and government funding |
| 3. The terms of borrowing can be negotiated and | | | | sources where you can apply for a grant. For |
| usually are more flexible than those of commercial | | | | most you will have to submit a written proposal |
| sources. | | | | to the agency, organization or foundation where |
| The disadvantage of borrowing from family or | | | | you are applying for a grant. |
| friends is who not knowing what will happen if the | | | | If your proposal is rejected, find out why. Ask if |
| money is not paid back on time properly. | | | | how and if you can resubmit your proposal. |
| Commercial Banks | | | | Other Sources |
| I personally wouldn't go this route you will see | | | | Credit unions and life insurance companies also can |
| why later on. But nonetheless, if you have to | | | | be a source of funds. Whatever financial institution |
| start here than start.. When applying for money | | | | you decide approach, show a willingness to risk |
| from a bank or individual investor, show a | | | | your own money and have a business plan or |
| willingness to invest your own money. You must | | | | proposal that is well written and well thought-out. |