Is Your Home Insurance Policy Covering Your Home Business? The number of people who run their business out of their homes is increasing all the time. Some people work from their kitchen table or home office because it saves money. Others do it because they just enjoy having a 30 second commute to work. There are lots of reasons why home offices are ideal places for people to run their businesses.But one big risk that many home business owners make is to rely upon their homeowners or renters insurance. There are quite a few reasons this may not be a prudent idea. This is especially risky if you have not reviewed your home policy since you started your business.Home Contents Insurance Most homeowners policies are a package of coverage. One part of the package is home contents insurance. When you purchased your policy, some time ago, you may have estimated a value for your personal property like your furniture, TV and jewelry. But most businesses rely on supplies, inventory, computers and accounting records. If you purchased your original policy without thinking of these things, it is very likely that you do not have enough coverage.Liability InsuranceA typical home policy may cover you in case a visitor to your home claims damage. But this may not cover you in case a customer claims your business caused damage. You may need business or professional liability insurance to be sure you are not risking your assets.Relocation One very handy feature of many modern home policies is relocation in the case your home must be vacated while it is repaired or rebuilt. This feature may help you rent a motel room or apartment. This may be fine for temporary living arrangements, but probably will not provide enough space to keep running your business.How Can You Cover Your Home Based Business?Some larger insurers may present you with a simple and affordable solution. For a very small business, an additional rider for a home based business may be all you need. You may just need to increase your personal property insurance. A chat with a good insurance agent should point you in the right direction.If your business is a bit larger, you may be able to purchase an inexpensive Business Owners Policy (BOP). These policies provide a package of commercial coverage, but can be customized to your needs. They are common choices for small business owners like store owners, dentists, and home business owners.How Can You Find A Good Deal On Home Based Business or Homeowners Insurance?You can find online quote forms for homeowners or home based business insurance. You start off by entering your zip code, a few basic details, and you can be quickly matched with the top insurers who do business in your city or town. Remember that most insurers have policies and prices that differ by location, and that is why you need to look for top insurers in the place where you live or do business.
Applying For a Small Business Loan
When you have ideas, plans, and desires in place, the anticipation of moving forward in operation a small business is extremely exciting. Only one thing can hold you back – money. Working with a lender and applying for a small business loan can be easy or difficult, depending on how much preparation you’ve put into the process.The lender will ask for a variety of items when applying for a small business loan1. Business Plan.If you don’t already have one, write one. Virtually no lender will consider you for a small business loan without the organization, detail, and direction you have for your business, and all of this is stated in a business plan. For information on how to write a business plan, visit sample-business-plan.org/sample-business-plan-directory.html – Don’t be afraid to hire a professional writer to write or proofread the plan for you if you’re not confident in doing it yourself.2. Loan Proposal.Nearly all lenders require a loan proposal if you are applying for a small business loan. After you’ve written a detailed business plan, your loan proposal can be written. The information in a loan proposal includes details on who you are, including your experience and business desires; how much money you need and what it will be used to purchase or fund; how you intend to pay back the loan; and what your plans are if you cannot pay the loan back in full.3. Completed Lender’s Application.Most lenders will also require that you complete a business loan application when applying for a small business loan. Your application should be very organized and presented in a professional manner. Don’t omit any details, and be completely honest about your credit history, even if you don’t have an excellent credit rating, when applying for a small business loan. Some lenders base their loans on the character of the person applying for a small business loan, and if you’re “borderline” for qualifying for the loan, your honest application can prove to the lender that you are indeed trustworthy for receiving a small business loan.4. Financial Statements.If your business is already in existence, visit the lender for your interview with two years of tax records, as well as two years of business and personal bank statements when applying for a small business loan. Not all of that information may be required immediately when applying for a small business loan, but it’s better to be prepared with the information on hand, rather than have to tell them that you’ll have to bring that in at a later date. Your tax records will show the profitability of the business, as well as detail its expenditures. Your bank statements will prove that money is coming in, and that the business is already established. If your business is yet to be launched, you still need to go to the meeting prepared with both two years of tax forms and two years of personal bank statements when applying for a small business loan. This will show the lender that you are a responsible, reliable individual, that you pay your bills, and that you file your taxes in an honest, timely, and fair manner.5. ResumeWhile not required for a meeting with a lender, it’s probably a good idea for you to have a current resume with you for the interview with the lender when applying for a small business loan. As mentioned, there will be some judgment of your character made at your loan interview. If this should come into play during the interview, you can easily present your resume to show your work experience when applying for a small business loan. This is especially important if you’ve worked in the field in which your business will be based. It’s also important in the instance that you have experience in a business-related area, such as management, marketing, or accounting, to show that you are capable of succeeding in business due to your experience in working with other businesses.The bottom line is to be prepared when applying for a small business loan:- Visit the lender with all files neatly presented and very organized.- Present information as requested during the application process and interview when applying for a small business loan.- Dress for success. Don’t show up at your meeting in jeans and a sweatshirt when applying for a small business loan.- Don’t worry if you’ve forgotten anything, and don’t get flustered. Offer to drop off or fax the requested information as soon as you leave the meeting. Offer to provide any additional information that could possibly play a role in your loan’s approval.If your business loan is not approved, don’t become frustrated. Many small businesses are declined on small business loans. Look into alternative loan sources, and don’t give up.
Legitimate Home Based Business Opportunity – Don’t Fall For The Hype
More and more people are working from home today, a trend that is only going to become more popular in the future. Already, there are more than 52 million home-based workers, and that’s just in North America alone. According to the United States Department of Labor, as many as two-thirds of all Americans could be working from home by the year 2025. While many of these folks will be stay-at-home workers employed by companies, the vast majority of these people will have started their “own” stay-at-home business. If you are looking for a home based business, a simple Google search will display literally thousands of opportunities. Take it from me, the Internet is chocked full of get rich quick home based businesses. Do not; I repeat -DO NOT – sign up for any Internet business that claims you will be making $5,000-10,000 a month within the first couple of months. It’s just not true, as much as you may want to believe it. You are looking for a legitimate home based business; you need to understand that NONE of these companies making outrageous claims are legitimate.If you are looking for a legitimate home based business opportunity, learn the lessons from hundreds of thousands of other people who have been lured into these get rich schemes. These people have paid thousands upon thousands of dollars, only to be frustrated, disappointed and poorer for their efforts. Fortunately, you can learn from their mistakes without investing another dollar. In the beginning, like many others, I fell for several of these companies’ promises of making big bucks quickly. To be candid with you, I am embarrassed to admit that I, too, poured thousands of dollars into these companies that promoted themselves as being a legitimate business, just to eke out a couple hundred dollars a month. The one thing I did get out of all my efforts was an education in what “not to do,” and I want to pass along a few tips for you to follow in your quest.• Before investing in any online business, do your due-diligence. At a minimum, check with the BBB.• Speak to other people who are already with the company. If the company will not give you names of other people, don’t do business with them.• Don’t believe the testimonials you read. Most of them are made up, and these people don’t even exist.In summary, don’t fall for these “get-rich-quick” schemes. Due your due-diligence until you find the truly legitimate home based business opportunity you’re looking for.