Some of the most successful companies in the world started with a single person and her one good idea. Entrepreneurship is at the heart of our culture. Taking a chance, stepping out on faith and trying to turn your dream into a reality are some of the values the country was founded on.

So, you’ve got a great idea. Wonderful! Plenty of people with great ideas die penniless every day. What makes you different is what you do with your idea. It’s scary and it’s not easy, starting your own business, but it is almost certain to be the best ride of your life.

How do you fund a small business?

One of the earliest questions you have to decide when starting your business is where to get the money. In some cases, you might be able to get a small business loan. If so, you’re a step ahead of your competition.

In other cases, you might need to seek out investors. You need to be able to convince others that your good idea is better than everyone else’s, and that there’s plenty of potential to make money with it and give your investors a decent return on their money.

Your home can help

If all else fails, you may be able to turn to your home. You might be able to take out a home equity loan, also known as a second mortgage. This kind of home loan is a little bit different from your first mortgage in that it adds an additional party to the mix.

In other cases, you might decide to refinance your home in order to get cash to start your business. Refinancing is often preferable because it keeps you in just one home loan, and you don’t have to deal with multiple creditors. In addition, with interest rates near an all-time low, you might be able to save some money on your regular mortgage payment by refinancing.

But be careful

Ultimately, taking out a home loan to start a business isn’t always a good idea. It carries with it a lot of risk. Unless you have a backup plan – perhaps a spouse with a full-time job who is able to pay the mortgage regardless of whether or not your business succeeds – it isn’t necessarily the way you should go. You should consider pursuing other options first.

Having said that, if your idea is good enough and if you’re smart enough about how you run your business, your home may actually help make you a millionaire.

Photo via Roo Reynolds