There are several reasons why you should renovate your home. However, you may not know how you can finance the home remodeling process. Keep in mind that home renovations are a great way to breathe new life into an old setting.

Remember that a new bathroom or kitchen can add value to a home and upgrade your life. If you want to add beauty to your home, you can include a new roof, have a paint job or do some deck repairs. All these things can protect your most expensive investment. If you want to save money every month, you can put in energy efficient windows and doors and install a new HVAC system.

Most folks find these things cost prohibitive, which is why many folks look to a home improvement loan to help them out. Before you get all excited about getting a home improvement loan, you need to understand right now that there is no such thing as a home improvement loan. The term is overused and generally describes the various loans that one can put toward a home improvement project.

Four Popular Home Improvement Loans To Check Out For Your Next Home Improvement Project

1 – Home Equity Loan

This kind of loan means the borrower uses the home’s equity for collateral, which is the loan amount in which you’ve paid off and can call your own. These loans are looked at as second mortgages since they’re taking out on top of the first mortgage. They’re also paid off in a shorter amount of time than the main mortgage loan. The loan comes to the borrower as a lump payment and is paid off in a fixed rate setting at regular times.

2 – Home Equity Line Of Credit

This is very similar to the home equity loan in regards to borrowing equity in your home. Rather than a lump sum, the money is giving in waves like a credit card. You qualify for a certain amount based on the home’s equity. You can take amounts out up to the limit and then as you pay on the principal loan, you can take out more “credit”. The reason this is so popular is that you borrow only the amount you need.

Something To Consider – Of course, both loans have a negative aspect to them, which is that you’re using your home as collateral. If you default on it, you could lose the home. Most people use the loans for home improvements, although some folks use it for other expenses such as a new vehicle or college.

3 – Energy Efficient Mortgages

There are times that home improvements are not about getting new kitchen or bathroom cabinets but rather up-keeping the home and lowering the monthly utility bills. This may mean replacing the HVAC system, which can save you money in the long run on your utility bills. The Energy Efficient Mortgage is similar to a second mortgage and can be rolled into the main mortgage. It can also be given when you first get the initial mortgage… for a new home. You can use this loan for an existing home by having it added during the refinance process. If you receive funds, then you’ll have to use it for the purpose asked for.

4 – Cash Out Refinance

This type of mortgage refinance is done when you refinance your home for over the outstanding balance on the loan you already have. This strategy is used when properties have boosted in value. Say you purchased your home for $200,000 about 10 years ago. You’ve paid on it $90,000 and owe $110,000 on the loan. The home’s value has doubled since purchasing it and it’s now worth about $400,000. You can opt for a cash-out refinance for $250,000 and use the money to pay off the outstanding loan of $110,000 and use the remaining amount for the home renovations.

If you want to make some home improvements and don’t think you can afford it, it’s time you look into a home improvement loan. Don’t forget that the above four are just some of the money options you have at your disposal to make those home improvements you’ve always wanted to do but never thought you could.

A business plan is a written description of the future of your business and more importantly, how you are going to get there. It is a document that explains what you are going to do to make your company profitable and how you are going to achieve this. It defines both your business model and your strategies to make this business model work and more importantly profitable.

Normally when a business idea arises, you know what resources and capabilities you have at the start of your business and where you want to go in a certain period, usually in 3 or 5 years. But what is the way to reach that goal? Where to start? How to arouse investor interest? Even, how to get your business off the ground? Everything seems so easy when you have the great money winning idea and concept. It is how you are going to achieve these dreams and get enough money to keep the business going for many years to come.

Writing a business plan is to build a map that will guide you to where you start making money with your initial business idea. At is very basic structure, your business plan is a mixture of strategies and plans. It involves financials, marketing, staffing and products. Think of it as the foundation to your new business.

WHAT are the reasons that I might need one?
• To look for investors.
• To apply for a loan.
• To establish the viability of your business idea.
• To make improvements to your current business.
• To expand your current business.

All of these types have different emphasises and a different structure.

WHAT is a business plan?
It is a tool or document that describes a business opportunity or idea, the work team, the operational and marketing execution strategies, the business risks and the economic viability of your business. A well written document guides you to turn an idea into a viable business.

It can also be defined in another context in that the business plan becomes a fundamental tool within the analysis of a new business opportunity, a diversification plan, an internationalisation project, the acquisition of a company or an external business unit, or even the launch of a new product or service within the current business.

To summarise, both for the development or launch of a startup and for the analysis of new business investments, the business plan becomes an indispensable tool. So even though you have an established business, you will still need a business plan as you expand and improve that business.

A business plan is never finished and should be reviewed from time to time at least annually but certainly when large changes to an existing company are anticipated. This implies that every plan must adapt effectively and efficiently to the changes, helping the project to continue.

WHAT is the point of a business plan?
Many entrepreneurs think they only need a business plan when they are seeking investment or when the bank asks for one. However the act of business planning, when completed correctly, enables the entrepreneur to carry out an extensive market study that will provide the information required to design the best possible business model that will be both profitable and efficient.

Additionally, the business plan will develop the strategic measures for all functional areas that will enable them achieve the objectives for the new business.
Once written, the business plan will serve as an internal tool to assess the management of the company and its deviations from the planned scenario. Proposing, if necessary, adaptations to the agreed business model in order to obtain updated information for the daily management of the company. This will include preparation of the required changes and processes to bring the business back on track.

So lets dive into the concepts behind business planning a bit more.

The WHY of The Business Plan
• Why do you want your business plan?
• Why are you writing the plan now?

The WHAT of the Business Plan
• What is the purpose of developing a specific plan?
• In what period do you consider it possible to carry out your projects?
• What is your business model?
• What is your Value Proposition?
• What are your products or services to be offered?
• What positioning do you plan to develop to compete?
• What are your measurements of success?
• What markets do you plan to penetrate?
• What market percentage do you estimate to obtain?
• What margins do you consider possible?
• What income do you consider you will receive?
• What are the costs of expansion?
• What are the costs of obtaining new customers?
• What do you want to do with your business?
• What strategies do you want to undertake – financial, marketing and planning

The WHERE of the Business Activity
• Where will your products be sold from? Shop, office, website, social media, road side, party planning,
• Where are you based? Locally, centrally, virtually etc.
• Where are your products produced?
• Where are your distribution channels?
• Where are they going to be sold?
• Where is your market?
• Where will your staff need to be based?

The WHEN of your business planning activities
• When will you need to start your new activities?
• When will they end?
• When will your investor need to invest?
• When will your investor get their money back?
• When will you have enough staff to carry out your new changes?
• When will your products and services be available?
• When will your products need to be updated and/or improved?
• When is the best time to attract new customers?

WHO do you present your plan to?
• Bank for loan purposes and they will take a charge over a property usually.
• Investor to join your company as a shareholder.
• Angle Investor to join as a shareholder but also be involved in the running of your company.
• Management team so they know what is expected of them.
• Suppliers who will be offering credit.
• Director level hires so that they are encouraged to join your company.
• Believe it or not the entrepreneur should also refer back on a regular basis.

As you can see there are a lot of Ws involved with a business plan – the biggest W is why should you write a business plan and the answer is – because it is such a great business tool.