After you have identify the cash available from your own account, now is the time for you to look for other financial sourcing to fund for your home based business during the start up. Generally, there are three types of capitals for a home based business, in fact for any business:

i) Start up capital

Capital that the business owner need to jump start the home based business, where this capital can be used to purchase manufacturing equipments, office furniture, office stationary, business license, inventory, and etc.

ii) Working capital

Capital for the business owner to pay the monthly utilities bill, monthly operating expenses, staff’s salary and so on. This capital have to be continuously funded until your home based business meet the financial breakeven point. Most of the businesses fail because of the insufficient funds from working capital and they lost their start up capital to achieve the positive cash flow.

iii) Growth capital

As the name suggest, this is the capital that the business owner need to expand their home based business. I would say this capital is the least important among the three required capitals unless the business reach the financial breakeven point.

All three capitals are important except for the first two are vital if you are not able to meet the breakeven point. The business owner have to find a way to continuously funding for the working capital on their home based business and keep the business rolling, otherwise your business will be easily falls into failure at the end of the day.