If you have decided to start a non-medical home care business, chances are you have already discovered that there are few limitations to setting up this kind of business. To begin with, it is possible to start a non-medical home care business from your own home.
Secondly, no previous medical training or experience is needed to venture into the industry. You will, however, need to undertake a short training program offered by a membership organization or a franchise.
Thirdly, when it comes to financing a non-medical home care business, it is very much possible to raise the capital without relying on relatives or banks to sort you out. In fact, the options of self-financing a home care business are practically limitless. So, which one would suit you best? Here are a few options:
4 Ways to Self-Finance Your Non-Medical Home Care Business
1. Your personal savings
While using up your personal savings to may involve putting your life savings at risk, you don’t have to stress yourself over the high-interest rates or security requirements that come with bank loans. To accumulate your savings quickly, you may consider taking up a part-time job, or you can choose to put some of your possessions up for sale.
2. Your credit cards
If you have a superb credit rating, chances are you may be able to finance your business exclusively on your credit cards. While it's true that this one can be an expensive way to fund your business, many people have done it and ended up being hugely successful.
Also, the fact that there are ways to cut down on startup costs, such as basing your business at home, means that you can easily cut down on the expenses.
3. Your Individual Retirement Accounts (IRAs)
Another way to self-finance your non-medical home care business is to borrow against your IRAs. If you have an IRA account or several, you can withdraw the interest they have accumulated (consider it a short-term, tax-free loan) if you are sure you can replace it within 60 days. It is imperative that you return the money before this period because even a one-day delay will not only attract penalties, but you will also have to pay taxes on the money you haven’t returned.
4. Your life insurance
Borrowing against your life insurance presents yet another valid self-financing option. Unlike a normal loan, you don’t have to pay the loan back since the money can be deducted from the amount your dependants or policy beneficiaries will get after your death.
When borrowing against your life insurance, there is no approval procedure and no explanation is required concerning how you intend to use the money. However, you might need professional advice if you choose to take this option as life insurance loans can be a bit tricky to understand in terms of compound interest and taxation.
In conclusion, whatever self-financing route you may choose to take, rest assured that in the end, it will be worth it. The road to success is long, but you will eventually get there!