It’s a fact that most potential first time home buyers put off ownership because of financial woes. They need to pay off, or pay down debt, increase their credit score, and save money for a down payment. This can be overwhelming. Studies show that wealth levels connected with buying a home drives the decision of some to start their own businesses. Most times this happens after the home is bought with great care to start out with considerable equity. But how would you look at entrepreneurship as a means to buying your first home? First, Entrepreneurship is not “moon-lighting”. It is not taking a second job to reach a goal. Many times a second job is grueling and not mutually rewarding. Entrepreneurship is in fact a rewarding experience leading to owning your own business, large or small. There are risks involved; some financial, some emotional, and some reputational. Entrepreneurs see a need for a particular good or service and moves forward to provide it, with the goal of making a profit. This is where we will explore the quest of a “part time entrepreneur” and her goal of buying her first home.
Let’s look at “Willette”. She is a single mom who wished to buy her first home. She had worked hard over a two year period to pay off debt and erase some negative credit, but this didn’t leave very much saved toward a down payment or the financial cushion she wanted to have going into home ownership. Even with some first-time home buyer programs helping with down payment and closing costs, Willette wanted more funds in the bank to feel secure about taking on home ownership. With two young children at home, working a second job was not an option she wanted to take. Even working overtime on her current job was not a steady supply of extra income. But Willette had a talent and a skill for baking, cakes, pies, and pastries with recipes handed down from her grandmother. She had taken those recipes, replaced some ingredients with healthier alternatives, and gotten rave reviews from family, co-workers, and friends. And this sparked an idea. Why not use her talent for baking to make money and save for home ownership? Willette took some on-line business classes, found a community kitchen used for baking goods, and started her “Willette's Good Sweets” home-based business. Because she already had a reputation with family and friends for providing a good product, she had a steady stream of customers ready to order. Within six months Willette had saved enough money to go forward with her dream of home ownership. In fact, she linked entrepreneurship to home ownership. Willette continues to churn out “Good Sweets”. She even has the children involved. One day she would like to make this her full time work, but for now she is just happy being a home owner.
While becoming an entrepreneur is not for everyone, it can be a rewarding experience doing what we love to achieve the things we want. Are finances keeping you from realizing your dream of home ownership? What do you do well that could turn into an enterprising venture? Has it been tested by the “market”? Is the entry way into entrepreneurship without much risk for you? Then go for it!