Could downsizing your home help you start a business?

Are you considering starting your own business? If so, you will know that it can be extremely costly. Getting financial help to set up a business these days isn’t easy; particularly if you have bad credit.

If you’ve been denied a loan and you are struggling to come up with the funds to start your business, there are other options available. Many people even consider downsizing their home.

However, could this be the right move for you? 

How much could you save?

The first thing you need to look into is exactly how much you would save if you were to downsize. It helps to understand everything there is to know about downsizing before you go through with it.

The McCarthy & Stone downsizing guide is a useful document to look over before you make your mind up.

There are potentially a lot of cost savings to be had from downsizing. Not only could you make money on the profit of the home but you will also end up paying a lot less for energy bills if you are moving to a smaller place. It can provide you with a lot more financial freedom and free up funds that can be spent to set up a business.

However, it is vital that you take into account any fees that will come from downsizing. Has your home increased in value since you bought it? If not, downsizing may be a waste of time. You need to be absolutely sure that downsizing will be financially worthwhile before you go ahead.

Other ways downsizing can help

Downsizing has become more popular after the recession. A report published in 2012 showed that 40% of people who were moving were doing so to downsize.

It has become a common way to release funds to either save or pay off debts. However, there is no reason why these funds couldn’t be used to set up a business.

Downsizing can also help make managing the home a lot easier. A smaller house will require less cleaning and maintenance. You can also use it as an opportunity to get rid of all of your old stuff and free up clutter.

Downsizing can be a great move to setting up a business. However, it does need serious thought and research before you decide whether it is worthwhile for you.