Financing and Housing your Affiliate Business

Starting your own business will require some monetary investment , although affiliate marketing requires very minimal input.  Before you go headlong into starting up then running out of money, consider the options that are open to you.  Are you eligible for help.  Research every financial option open to you.  

Financing your affiliate marketing business is not going to cost you a year’s salary, and you won’t have to find huge amounts of capital to get it up and running.  However, any viable business is built using a carefully constructed and intricate plan.  You need to ascertain how much you will need to build your business into the first year.  This is so important.  It is little use to anyone if you can invest for the first six months and then try to survive crossing your fingers.  You will set your enterprise up for failure and more importantly, you will be letting your customers down, not to mention yourself.

There are ways to finance an affiliate business, and this doesn’t involve taking out a secured loan against your home or re-mortgaging.  Start by drawing up a list of all the disposable income you have. Next, put together your carefully constructed business plan overview.  This will be bullet points but will detail the nuts and bolts of your proposed plan.   You know how much you need to find, even if it is a ball-park figure.  This will help you start as you mean to go on, planning each step.  Ensure that you overestimate costs, as this will leave you financially healthy in the event of the unforeseen.  Now, let’s find that money tree.

• Grants and Aids - exhaust every avenue First of all, find out if you are entitled to a small business grant or any funding.  You must thoroughly investigate this avenue of funding as your first option.  You will find a directory of organizations for the UK and a listing of federal personal assistance from Government benefits, grans and Financial Aid.
• Savings - if you have any savings at all, consider borrowing these until you can pay them back, and make sure that you include this in your ethical business plan.  In the event that your business is unsuccessful, ensure that you are able to lose these savings without too much financial hardship.  Certainly, do not invest your hard-earned life-saving, you will be negating all your hard work if your business fails to thrive. 
• Start small -never consider starting your business working from home by opting out of paid employment.  That will lead you into financial difficulty.  Think of ways that you can start your business whilst working.  Can you reduce your hours at work, then spend this time setting up your new business.  What about concentrating your efforts on your business at weekends.  As your business starts earning, you may find that your own business provides you with a great source of income to top up your salary. This is an ideal way to test the waters. 
• Three F's - call on family, friends and other fools.  Use your business plan to prove that you have thought carefully about your business. Draw up a plan of how intend to repay the money if your business fails.  Formulating a contract of agreement between you is ideal if you are to gain the lenders’ confidence.  Perhaps you could agree on a small fee to cover interest.  If banks charge at 8%, perhaps you could agree on 4%.  You can both sign the agreement and you can include a clause that puts the onus on you to keep the lender informed of your business progress.  Be enthusiastic; this is the start of your marketing venture, so market yourself.  If you share your vision and exude confidence your lender is likely to agree. You could also offer an equity share in the business, but be strong about retaining power. Personally, I would never borrow from family or friends; I think it makes for sour relationships.
• Bank loan - banks are slowly lending to small businesses again, although this uptake is very slow and there is still much to be done to enforce the banks to cede to government pressure.  It is possible to find small business bank loans and in the USA, the Small Business Loan Recovery Program is underway and the European Investment Bank has been called upon to increase lending in the UK.  
• Equity finance - could be a consideration; whereby you sell part ownership of your business for cash finance.  Your investor will assume most, if not all, of the risk but they will dictate the return on investment.  It usually works out far more expensive if you are successful and if you require the finance over a longer period, the payback will be all the more, so think carefully.  The bonus is that you will have no financial risk and will benefit from good connections and advice from your lender.  If this is your only option then stay focused and decide on how much of the business you are willing to relinquish and do your figures to work out what the total return will be.
• Private lending - is a viable option, however the lender will be looking at the same criteria as the bank and will exercise the same due diligence.  Private lenders are usually industry-specific and will invest in a business applicable to their market.  This is where your business plan will be required to prove your intention to set up a viable, growing business.

Do not consider getting into debt.  This is the big NO.  No matter how sure you are of succeeding, this is a dangerous thing to do and you are putting at risk everything that is important to you.  Especially do not miss important payments and rob Peter to pay Paul.  This will lead to untold misery and stress. 

If all else fails and you are unable to get finance, start small and think big!  If that fails, flex the credit cards, but do not borrow long-term on credit cards.  The interest is usually  far2much% and they are a dangerous way to go.  It is easy to run your cards up on the never, but you are likely to get stuck.  If you are in employment and desperate to start your business, then save a bit at a time.  

Remember, your affiliate business is nothing without you, so always put yourself first and don't pour all your money into an uncertain venture.  As your business grows, you will be able to invest more capital to drive the business.  Best of luck with your efforts!

Housing Your Business

I find it quite difficult to be disciplined at home, because time is at my disposal and I am able to decide when and how I do everything.  In order to work from home, I had to define my expectations and work out how best I could work to full capacity.  Needless to say, I am far from perfect, and I do overstep the boundaries sometimes, but I could not have started without determining the following:

• Set aside a quiet room for your office and choose one that is calming and away from areas like the hallway or where your family are likely to tread communally.  Either choose a calming room or redo in a coat of paint; blue is calming but not hypnotising for me.
• Do you have space in this area for all your equipment and is your computer and furniture ergonomically designed to avoid RSI, back strain or tense neck.  You do not have to invest in new, expensive, ergonomic pieces; buy second-hand or ask for hand me downs.  It is surprising how many offices trash chairs that they no longer use or desks that go to the furnace.  Ask local businesses for any handouts; they will be pleased to avoid recycling charges.
• Don’t spend a fortune making your office user-friendly.  Put a couple of your favourite pieces in your office, a picture, a vase or ornament will provide you with a bit of luxury; you deserve it, you are about to work much harder than you ever have.
• Get a separate computer or laptop for your office and ensure that you have the equipment you need.  You will need to network your work and personal computers and printers.
• It is useful to have a Dictaphone for any spur of the moment ideas that spring to mind.  You can keep them all on the Dictaphone and this means you do not have search for paper, pen, or open a new document on your pc to quickly capture your ideas.  You can build entire campaigns this way and as you get more familiar with using your tape recorder, you will find it has many uses, for the office and for personal use, but do not mix the two.
• Let your family know that your office is the income universe, and if anything goes missing or work is damaged, it could mean that you will have to work even harder; put up a polite ‘keep out’ sign, and it is useful to have a locked office.  This will take temptation out of the children’s way, after all, children are inquisitive; it is unfair to put the onus on them.
• Keep your office completely separate from other rooms in your house and exercise your boundaries.  Your office is your work area, so avoid distractions.
• It is paramount for you to install a separate telephone line for your office and do not give out the number to personal contacts.  Make your business contacts aware that you have a separate business line, and let your personal contacts know that you don’t like to be disturbed whilst working.

 Now that you have these two important factors dealt with, it's time to think about how you will make money as an affiliate.  Good luck with your venture.