Page 53 - 597 Business Ideas You can Start from Home - doing what you LOVE! (Beginner Internet Marketing Series)

42 Your Idea, Inc.

2. Thinking that a credit limit equals cash. When you see
the "credit limit" amount on your statement, it can feel like
a real cash infusion, but don't be fooled. Credit card limits

cannot be considered income. Spend that amount as care­

fully as you would spend hard-earned money.

As you probably know from personal use, credit card purchases
add up quickly. Think about each purchase before you make it.
Don't be impulsive, be frugal. And be frugal but not cheap! Spend
what you need to make your product viable in the marketplace.

Loans from Family and Friends

If the risks of credit card debt make you nervous, you may want to
see if you can get an interest-free loan from family or friends.

Get It in Writing

Even if you have a close relationship with the lender, you prob­
ably want to have this 1 .0.0. in writing. That way, expectations are
clearly stated and both parties are on the same page. In the 1.0.0.,
establish the following:

1 . How long before you have to pay them back. Ask for
at least eighteen months. Bringing a product to market
takes time and you don't need the added pressure of a fast­
approaching family-imposed deadline.

2 . An interest rate (if applicable). If the person insists that
you pay interest (grovel first!), you need to agree on an inter­
est rate. Refer to local banks for an average savings account
interest rate, but of course, try to get yourself a better deal!
(A note: Even if you have to pay interest, consider yourself
lucky that you didn't give away a piece of business owner­
ship to get it. It is much better to take on debt than give up
a piece of your pie at this early stage. Your business cannot