Call me a hippie, a new-age weirdo, a The Secret fan (actually, don’t call me that), but I believe that when you’re looking for a job, it pays to have a positive outlook. Yes, you will get a job! A good one! That pays you money and doesn’t tempt you to jump out of a 15th floor window!

Most stories about the job market are bleak. But there are golden nuggets of hope out there, which MainStreet is committed to finding. For example, there are jobs that employers are actually struggling to fill.

Last week, Manpower (Stock Quote: MAN), a rather large staffing firm that claims it made $22 billion in worldwide revenue last year, released its annual survey of the 10 hardest jobs to fill. After surveying 2,000 U.S. employers, they came up with this list:

1. Engineers
2. Nurses
3. Skilled/Manual Tradesmen
4. Teachers
5. Sales Representatives
6. Technicians
7. Drivers
8. IT Staff
9. Laborers
10. Machinist/Machine Operators

Now, most of these careers require specific skills and training. So if you’re, say, an out of work investment banker, you’re not going to walk in and get a nursing or engineering position. But all 10 of these jobs have appeared at least once before on Manpower’s survey, which it’s been conducting for four years.

And that, my friends, means these jobs are consistently in high demand. If going back to school or becoming an apprentice could guarantee job security, it’s worth it, no?

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By Althea Chang | MainStreet.com

Road trippers and vacationing locals alike can spend three free weekends at more than one hundred national parks throughout the summer thanks to a deal from the National Park Service.

Free Weekend Fun
The National Park Service will waive entrance fees, typically between $3 and $25, at 147 sites including the Grand Canyon National Park in Arizona, the Shenandoah National Park in Virginia, and Yellowstone National Park in Wyoming and Montana. (See here for a full list.) The free days include Father’s Day weekend from June 20 to 21, the weekend of July 18 to 19 and again from Aug. 15 to 16.

“During these tough economic times, our national parks provide opportunities for affordable vacations for families,” Secretary of the Interior Ken Salazar said last week at a press conference at Cuyahoga Valley National Park. “I encourage everyone to visit one of our nation’s crown jewels this summer and especially to take advantage of the three free-admission weekends.”

Park Goodies and Deals
Parks will also be offering free goodies and deals, like a free reusable shopping bag available at several parks, and free houseboat rides at Lake Mead in Nevada and Arizona and Lake Amistad in Texas.

Package deals and other promotions will also be available on fee-free weekends. (The Park Service has another handy list here.)

Example: Families going fishing at the Echo Bay Resort at Lake Mead can get a one-day fishing boat rental, a free bag of ice, free bait and a 20% discount on purchases at the Marina Store (except on alcohol and tobacco), an estimated $100 value, for $50.

For more on the attractions available at national parks, visit nps.gov.

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Some life insurance policies are starting to haunt the living. Three years ago, I said “premium financed” policies were “not exactly a scam, but dangerous.” Today that warning seems like an understatement.

More than $20 billion of these so-called “spin life” insurance policies have been sold and now they’re starting to implode. Many policy holders don’t realize the trouble they face.

The concept seemed straightforward when sales were rampant several years ago. Agents promised clients that investors would lend them money to pay the premiums for the first two years, until the policy was past the “contestability period.” Then the policy would be sold to an investor, who would continue to pay the premiums, hoping to collect on this “bet” on the senior’s longevity.

Agents were encouraging elderly people to buy huge life insurance policies on themselves, even though they didn’t need the insurance, and couldn’t afford the premiums.

Why would any person let a stranger become the owner of a policy on his life? The answer is simple: money.

Pre-death bonus: Seniors were tempted by upfront “bonuses” that ranged from thousands of dollars to expensive cruises just for letting the investor bet against the insurance industry’s mortality tables, and eventually collect the policy proceeds. And they were promised more money when the policy was sold.

At first, there was no risk to seniors. The loans to pay the premiums were “non-recourse.” However, three years ago, insurance companies decided that customers needed to guarantee at least 25% of the premium. The insurers potentially sensed problems brewing, but still wanted to sell policies.

Sales agents collected fat commissions by convincing seniors there was no risk. Household names in financial services were raising money to buy these policies, betting they would pay premiums for a few years and then collect on death. Among them were LaSalle Bank (now part of Bank of America (Stock Quote: BAC)), Credit Suisse Group (Stock Quote: CS) and funds managed by Berkshire Hathaway (Stock Quote: BRK.A) and Goldman Sachs (Stock Quote: GS).

Death bet gone wrong: Then came the credit crunch. Demand for the policies dropped as investors struggled to borrow. When the two-year premium period expired, the insured expected brokers to sell the policies, allowing them to collect their bonuses. But there was no money to complete deals.

Suddenly, seniors faced premiums on insurance they didn’t need and couldn’t afford. It wasn’t unusual for a senior to take out a $5 million policy, citing estate tax purposes. The premium on that policy could be $200,000 a year.

Sure, they could stop paying premiums and drop the policies, but most had signed documents agreeing to repay at least 25% of the first two years of premiums, plus interest. At the end of two years, the senior would owe $100,000 plus interest, adding another $6,000 to the tab.

Forgiven loans taxed: If the senior manages to pay off the guaranteed amount, plus interest, the lender will “forgive” the balance and additional interest. However, the policy holders will owe taxes on the forgiven debt.

If $300,000 plus $18,000 in interest was forgiven, a senior in the 35% tax bracket would owe an additional $100,000 in taxes on this phantom income.

Marc Sheridan and Don Tolep of Sheridan Wealth Advisors in Bay Harbor, Fla., say they’re seeing more seniors facing financial ruin with these loans. They say the Internal Revenue Service might be collecting as much as $1 billion in taxes on this income.

It’s estimated that more than 10,000 of these “spin life” policies were sold in recent years. It looked like easy money for those willing to “share” their insurable capacity. Now they’re learning an expensive lesson. And that’s the Savage Truth.

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By Marek Fuchs | MainStreet.com

Mom might have told you that you need to go to college to get a good job, but moms are biased. College is not for everyone.

There are plenty of good jobs that don’t require you to go into $200,000 of debt for a four-year college degree. When looking at these jobs, just remember that salaries can vary, depending on the region of the country or seniority, and often both. Also, benefits beyond salary—particularly in the area of retirement—can be a huge incentive.

f you are looking for a solid career path that bypasses the university route, here are some professions you should consider:

Air Traffic Controller
Air traffic controllers monitor and direct private and commercial air traffic. They are highly trained and skilled, but the job does not require a college degree. The Federal Aviation Administration, which employs practically all air traffic controllers, requires them to enroll in a FAA-approved education program and pass entrance tests. The road to becoming a fully qualified air traffic controller can take several years, but this is a profession with opportunities. The median salary is more than $100,000 a year.

Elevator Mechanic
Many construction jobs are high-paying. Elevator mechanic jobs are lucrative and stable. There is a lot of training involved, however, and new mechanics have to start in an apprenticeship program. Still, with a mean income of more than $60,000 a year, this is one gig that can take you higher.

Flight Attendant
If you’re willing to fly all over creation, deal with rowdy passengers and keep a smile on your face throughout, you can earn a good living as a flight attendant. Salaries are determined less by region of the county or even particular airline than by how many years you’ve put in. For those with less than six months experience, the median salary is $16,200, according to the Association of Flight Attendants. By year 15, flight attendants at Southwest are pulling in more than $55,000 a year.

Firefighter
Salaries for firefighters can run the gamut, with small cities half that of the large. But take a place like Yonkers, N.Y., where a firefighter’s starting salary is in the neighborhood of $50,000. A chief can make three times that. Salaries for non-officer firefighters with seniority run to about $90,000, while lieutenants and captains make in the low six figures. The job of a firefighter, like many others that do not require college degrees, keeps on giving. In Yonkers, for example, retirement compensation is determined by your last year’s salary—not the average of your last three, as can be the case in other cities. This means that a firefighter who puts in a good deal of overtime over a relatively short portion of their career has a chance to be quite comfortable in retirement.

Police Officer
There is money to be had in crime, at least the right side of it. Best of all: you don’t need a college degree. Police salaries vary widely according to municipality and some promotions do require a college degree. Yonkers, for its part, offers salaries for police similar to those of firemen, with detective officers earning healthy six figure salaries. For those who might harbor visions of themselves as an Erik Estrada type, the California Highway Patrol pays cadets between $50,000 and $60,000 while training, also offering free room and board and a mandatory seven hours overtime a month. From there, it’s a salary of $65,185, with 5% increases yearly until the top step base salary of $79, 248 is reached.

Real Estate Broker
The business has its risks in terms of cyclicality and compensation that is based on commission, which means that unless you hustle, you might not make one thin dime. But if you have the gift of the gab—and even the blarney—you don’t need to spend four years toiling away at college. In 2007 the median income of licensed real estate brokers was $65,200 a year, according to the National Association of Realtors. And many real estate brokers are able to work in sideline professions, often in related fields like relocation. For example, 16% of real estate brokers work in commercial property management, according to the association.

Nuclear Power Operator
If Homer Simpson is your idol, become a control room operator at a nuclear plant. For control room operators at Indian Point in Buchanan, N.Y., a college degree is preferred, but by no means required, says Jerry Nappi, a spokesman, who added that they do look for a high school degree and some demonstration of technical ability. At the first level, the base pay is $66,000. With overtime, it bumps up to a likely $75,000, says Nappi. After five years, you are making a cool $109,000. If you are promoted from there to reactor operator, you can make $174,000. A senior reactor operator averages $184,000. Hey, maybe Homer’s not as dumb as we’ve been lead to believe.

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By MainStreet.com Staff Writers

Getting older means dealing with a number of different issues you never had to before. One person that can help you handle those issues is an elder care attorney. Elder care attorneys specialize in issues that specifically pertain to seniors and their families. Whether or not you need the assistance of an elder care attorney depends on your and your loved ones’ needs and resources.

Elder care attorneys specialize in a number of different areas. Here are some of the things and elder care attorney can help you with:

1. Estate planning: Creating last wills and testaments as well as living trusts to plan the distribution of your estate after your death.

2. Oversight and administration of an estate: An attorney can serve as a personal representative or executor to manage how a will or trust is carried out.

3. Insurance claims and settlements: When disputes arise with insurance companies either for health insurance, long-term care insurance or life insurance, an elder care attorney can help advocate for you.

4. Medicare, Medicaid and Social Security benefits: If you or a loved one is denied these benefits, an elder care attorney can argue your case.

5. Drafting and reviewing certain legal documents: An elder care attorney can provide assistance with durable powers of attorney, advance directives and other legal documents.

6. Legal guardianship: An elder care attorney can help you designate who will make decisions for you if you become incapacitated. Your attorney can also help you create a living will to make sure your wishes in regards to life-saving medical treatments are known.

7. Elder abuse and neglect issues: If your loved one has been abused by an assisted living facility or home health care worker, an elder care attorney can pursue legal remedies.

8. Long-term care concerns: Elder care attorneys can provide valuable assistance in managing the long-term care needs of elderly clients with illnesses and/or disabilities. Those suffering from Alzheimer’s disease and other degenerative diseases, for example, can benefit from having an elder care attorney to help manage their finances and long-term care arrangements.

With more and more baby boomers entering retirement, the elder care legal specialty is growing. Finding an elder care attorney is not as difficult as it once was, but you still need to do your due diligence. Most elder care attorneys do not focus on all of the subjects that fall under the purview of elder law. It’s best to find an elder care attorney that is experienced and well versed in the specific area that pertains to your needs.

The best way to find a good elder care attorney is through a recommendation from a family member or friend. You can also search for members of the National Academy of Elder Law Attorneys. Before hiring an elder law attorney, you might want to ask these questions:

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By MainStreet.com Staff Writers

Funerals are expensive. It’s unpleasant to think about funeral arrangments at all, let alone the financial aspect, but sooner or later we all must expire. So it goes. But if you’re making your own pre-arrangements, or dealing with the loss of a loved one, there are ways to save money while still honoring one’s life and memory.

The average cost for an adult funeral in America in 2006 was $7,323, not including burial, according to the National Funeral Directors Association. That cost can easily soar over $10,000 if you choose some of the pricier options.

If you know some of the pitfalls to avoid and some money-saving strategies, you can plan a very nice funeral on a budget. Here are some tips to help you avoid exorbitant funeral costs the next time you are charged with this unfortunate task:

Cremation
The least expensive way to handle the remains of a loved one is to have a cremation. A direct cremation, in which the body is cremated immediately without a funeral service or viewing, is the least expensive option. In most places, you can have this done for less than $1,000, but prices can vary significantly between crematoriums. You can also save money by having a cremation after the viewing and/or funeral, but you will have to pay for embalming services, a casket and facility costs. Ask about renting a casket if this is your choice.

Direct Burial
Like a direct cremation, this is when the body is immediately buried without embalming or viewing. A simple wooden box can be use in place of a casket. Instead of a funeral, a memorial service can be held after the burial.

Other Burial Options
Some cemeteries require you to buy concrete grave liner. Typically there is more than one option at different price points. Cemeteries can charge over $1,000 for the “burial vault” grave liners. Always opt for the least expensive liner. The only difference it makes is to your wallet. You can also save on burial costs by choosing less expensive headstones and monuments. These are also available online.

Casket
The casket is easily the most costly expense for a funeral. According to funeral directors’ association, the average metal casket costs $2,255, but more expensive models can cost $5,000 to $10,000. The mark up on caskets is often 300% to 500%. Funeral directors are required by the Federal Trade Commission’s “Funeral Rule” to show you a list of caskets for sale at all price ranges. Realize that you are probably going to be directed towards more expensive options, but a casket is just a casket. Once it’s buried in the ground no one will ever see it again.

The Funeral Rule also mandates that funeral homes must accept third-party caskets and cannot charge a handing fee. There are numerous online casket retailers that offer caskets at as much as half off. They can be quickly shipped to the funeral home sometimes overnight.

Comparison Shop
While you may not be in the mood for comparison shopping when planning a funeral, you can save thousands by just looking in a few places. It’s wise to call a few funeral homes and get price lists over the phone. Prices can vary greatly from one funeral home to the next.

Plan Ahead
To avoid saddling your loved ones with paying for your funeral, consider taking out a life insurance policy for that purpose. Or you can open a special savings account jointly with your next of kin that can be quickly drawn from when the time comes. Better yet, make your own pre-arrangements and pay for everything yourself now, before your family is saddled with the burden.

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Searching for a job is challenging enough in a recession. Job seekers who are eager to reply to any hint of a paying gig must also avoid online scammers and identity thieves who are targeting them.

The Better Business Bureau found that 73% of job seekers reported using online sources for help in 2007, compared to 66% in 2005. And that number is estimated to be higher now. But while there are certainly a number of good jobs to be found on sites like Monster.com (Stock Quote: MWW) and other job search sites, there are also pitfalls when it comes to online job hunting.

“There has been a significant upturn in job-related scams online as we see a downturn in the economy,” says Craig Butterworth, media specialist for the National White Collar Crime Center, which tracks online scams and reports findings to the F.B.I. “People are trying to make ends meet, so even when they get a job offer or see a listing that seems fishy, they try to rationalize it. But as the saying goes, sometimes when something seems too good to be true, it usually is.”

Here are some tips from the experts on how to avoid being scammed.

1. Beware of Immediate Offers
Butterworth says to never respond to an unsolicited job offer you receive through email. No matter how legitimate the request appears to be, companies will never offer a job on the spot without first getting to know you. Butterworth says the most common emailed job offers involve re-shipping, envelope stuffing and “secret shopper” opportunities. Many of these offers are created by scammers who want to access your personal information.

Look into the company you’re dealing with.

“Ascertain whether the employer has a brick and mortar presence,” Butterworth says. “Every company has some type of physical office or headquarters. If they don’t, it should raise an immediate red flag.”

And while having a web site is a good way for a company to claim legitimacy, experts warn that there are a number of bogus sites out there that forge company logos and ties to larger existing companies in order to create an atmosphere of legitimacy. If there is no phone number or physical address listed on the website, you might be dealing with a scam.

2. Never Pay Money Up Front in Order to Work
Experts say a sure-sign of a scam is a job that requires you to pay money upfront.

“You should never have to pay to work,” says Butterworth. “It works the other way around.”

Butterworth says fake employers often ask you to pay a “start-up fee” to access information and a start-up “kit.” You then receive a letter in the mail saying that your work agreement is terminated. The money you paid for the so-called start-up fee? Gone.

The Better Business Bureau says to also beware of jobs that use Western Union (Stock Quote: WU) or Money Gram (Stock Quote: MGI) as their main source of payment. Scammers can often hide behind anonymous accounts and wire you checks that turn out to be bogus.

3. Guard Your Personal Information
A legitimate job listing will never ask for your personal information over email or through a web site. This info includes your social security number, credit card and debit card numbers, bank account information and your tax ID. Volunteering that information could make you vulnerable to identity theft and fraud.

Some jobs promise to send you a check by directly depositing the money into your bank account. But you should never give out your account information online, especially to someone you’ve never met in person.

4. Always Ask to Meet in Employers Person
The internet can be a great job-finding tool and there are many legitimate opportunities out there. But you never want to sign on to something without first speaking to a representative over the phone or, better yet, arranging an interview in person. If the company is unable to provide a face-to-face meeting or a contact person for you to speak with, you’re probably best off looking for work elsewhere.

Above all, do your due diligence and don’t be afraid to ask questions. If your suspicions are set off, it’s best not to proceed.

“A lot of people are desperate to find work and they’re not being as cautious as they otherwise might be,” Butterworth says. “But it’s important to cross your Ts and dot your Is to make sure you don’t set the stage for identity theft, or end up being scammed.”

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Denise A. Manniello of Federal Credit Repair Services

 Thanks to Geezeo you’ve mastered your money.  You’re the king (or queen) of cash flow.  You’d like to show Congress how to budget, and think saving should be in the Olympics. There’s just one problem.  Your credit still sucks.  Should be an easy fix for a pro like you, but somehow you just never get started.  Bad credit costs you money and the longer you wait to fix things the more cash you lose. Don’t be afraid to consider hiring a credit repair service.  I sat down with credit repair expert, Denise A. Manniello of Federal Credit Repair Services.  I asked Denise about her services and what people should know about credit repair. 
 

Is there a difference between credit restoration and credit repair?  

Credit restoration is typically marketed to affluent clients, households with $200,000 or more in yearly income.  While credit repair is marketed to those earning less.  Other than semantics, there is no real difference between credit restoration and credit repair services.  
 

What are some misconceptions about credit restoration?

That it’s a scam and doesn’t work.   
Fraudulent companies have given the credit repair industry a bad reputation. The Fair Credit Reporting Act and the Credit Repair Organization Act has made fraud less common than it was 7 years ago.  A reputable company will be working to remove negative items from your credit report daily.  Our clients can log in to their files through our website anytime and check out their progress.       

Credit restoration/repair has to be done by an attorney.
It’s more important to find a qualified service provider with credit industry experience. If that person happens to be an attorney, then great.  Never assume that a being a lawyer automatically qualifies someone to fix your credit.  In fact, attorneys are often not subject to the same stringent state laws as credit restoration firms.  So consumers should be aware they have more options available than just hiring a lawyer.   

Credit repair companies can guarantee results.
No credit repair company can guarantee a specific outcome because they are not the reporting company. In other words, I cannot rewrite your credit report. Credit grantors report information to the bureau directly.  Client results depend on the ability of each bureau to verify the items disputed.  I can only call attention to negative items and push to get them resolved and reported correctly. It is illegal to guarantee certain kinds of results and these guarantees are usually a sign that you’re dealing with someone less than reputable. 
 

Why or when should a person hire an expert instead of fixing their credit themselves?

The biggest factor working against people trying to repair credit on their own is lack of knowledge. Even if they are aware of the law and their rights, they don’t know how the system works as a whole. We understand why and how the credit bureaus and creditors do what they do, and we act as your representative to get you the results you want.  Having  the tools to build your dream house doesn’t mean you’re the best person for the job. The same principle applies with credit repair.
Furthermore, money and credit issues are very emotional for most people. Our affluent clients value our services because we help without judgement or negativity, this isn’t usually the case when people deal with creditors directly.  

Tell me about your typcial client. 

I typically work with affluent clients, who are at the $200,000 + household income level.  I work to educate youth through special programs in schools, and I’m seeing more clients who are interested in learning how to get and maintain exceptional credit. 

What’s the tipping point for your clients?  What makes them finally decide to call a professional?

People know they have to take action to solve the problem but want to avoid the pain of dealing with creditors directly.  They also want to save time.  Credit repair takes a tremendous amount of time and effort.  It’s easy for people to get off track because our lives are so full, but professionals are paid to keep working toward results.   Some other reasons people might call me are major life events that can affect their credit like marriage, divorce, or refinancing a home.  There are also clients who want to avoid  credit mistakes again so they call me to learn how to budget and better manage their financial lives.  

Negative items on a credit report can cost you thousands. Don’t be afraid to hire a service to get you on the road to sparkling clean credit. Thanks for answering my questions Denise.   Go to FederalCreditRepair.org   to view more common credit repair questions.

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By Althea Chang | MainStreet.com

Employment seekers are increasingly looking for temporary, contract and seasonal work, according to the Bureau of Labor Statistics.

These days it pays, however, to go into a temporary work situation fully armed with information on how the system works. Sometimes, it makes more sense to avoid temp work.

“When the economy is down, employers are more likely to use questionable employment practices,” says David West, executive director for the Center for a Changing Workforce, an organization providing policy analysis on employment issues for temporary, contract, and part-time workers.

Here are a few things to consider before you commit to a temporary, part-time or contract gig.

1. Securing Health Insurance

If you’re looking for temporary, part time or contract work, not many companies will offer you health benefits, or any benefits for that matter, says John Challenger, of executive search firm Challenger, Gray and Christmas.

Temp agencies and staffing firms are often used to fill temporary posts, especially the lower paid positions. Regardless of where you are placed, if the staffing firm is technically considered your employer, you’re paid through the agency and they don’t have to give you benefits, West says.

Some companies, such as like Starbucks (Stock Quote: SBUX), Walgreens (Stock Quote: WAG) and UPS (Stock Quote: UPS) are known for generous benefit plans even for part-timers. Many temporary staffing firms that do offer health coverage only offer it through limited benefit plans, according to West.

“They’ll pay for a few doctor visits and that’s it,” says West. And if you don’t read the fine print on your health coverage, you may not realize that’s all your plan covers, he adds. “It gives you a false sense of security, and if there’s an emergency, your health care costs could put you close to bankruptcy,” West says.

If you’re a worker with special skills and you’re being wooed by a company, you may be able to negotiate for a better benefits package, says Challenger.

But if you are offered benefits they may still be expensive, warns West. If a company does promise you benefits, make sure you get it in writing, West advises.

2. Saving for Retirement

If your employer doesn’t offer you a retirement plan, consider opening an IRA on your own.

3. Beware of Non-Compete Agreements

If you’re considering a temporary or contract job handling sensitive information, you may be required to sign a non-compete agreement promising that you won’t take a similar job at a company’s competitor for a certain amount of time, say six months or more.

Such an agreement can be a hindrance if you are actively searching for a position in your industry, as sometimes it is not possible to defer a competitor’s job offer.

Non-competes usually affect a small group of higher-wage earners, including software designers or sales people, keeping them from working at a company’s direct competitor.

“You always want to understand what restrictions the company is putting on you, especially if they’re asking a lot,” warns Challenger. They technically can’t restrict take your ability to move very much, however, because non-compete agreements have to be very specifically written and pertain to a specific time frame after you work for a company.

4. When to Avoid a Temp Job

If you’re interested in a temp job, but you can live off unemployment checks or have sufficient emergency savings, you may want to reconsider.

Some workers who on paper are considered temporary or contract workers have been at the same job for years. They’re known as permatemps, and they may go years without health, retirement and other benefits.

Challenger says he usually advises people not to take on part-time, temporary or contract work unless it has full-time potential, or unless it’s absolutely financially necessary.

“Usually taking a part time job deters people’s searches” for permanent full-time work, he says. “It’s important to think about whether the job has the potential of turning into a full-time job. Is it the kind of job you’d want to take full time?”

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Inquisitive entrepreneurs and small business owners can find inspiring insights and common sense answers from two industry pros on MainStreet.

Each week Dani Babb, a small business expert and the dean of Andrew Jackson University’s College of Business in Hoover, Ala., and Dr. John Rutledge, the chairman of private equity investment firm Rutledge Capital, offer their advice to scores of entrepreneurs and small business owners. They are also frequent commentators on Fox Business News.

This week they respond to a question from Mary from Arkansas about small business startup funds.

Mary: “How do I get money to start my business?”

Babb and Rutledge: Mary, there are many ways to get money to start your business!

Even though credit is tight there are still lots of options. The right source of money for each entrepreneur depends on the business, the amount of money needed and the potential return.

Try the Small Business Administration for starters. We always recommend that a business check into the SBA, which has a lot of options for individuals wanting to start businesses. They offer loans of up to $500,000 with 10% collateral under the new rules.

However, getting money these days isn’t as easy with tightening lending standards. If you do go the SBA route, be sure you have the business documents required by the SBA before you hit the bank.

If you’re starting a business as a sole proprietorship, you’ll need good credit. If your personal credit score isn’t so hot, Mary, consider creating a new LLC that will let you “start over” in many respects with regard to your financing options.

Another option is to BYOB, or be your own bank. Do you have an attic, closet or garage full of stuff you aren’t using? Many businesses, particularly online businesses, can be started with less than $5,000. Sometimes you can sell enough stuff on eBay (Stock Quote: EBAY) to start your new venture and avoid owing money to anybody. Do this before you approach other sources of capital—it’s always your lowest cost source of money. We helped a business owner two weeks ago that found more than $7,000 worth of “knick knacks” in her closest was able to get her online business started. In about three months she will have an e-commerce store!

Be careful when you approach family and friends. Many business owners say their first round of funding started with friends and family, and yours ma,y too. Those who are closest to you may be the best chance to raise capital; but its cost can be much more than the interest rate. To avoid family tensions, be sure to get an agreement in writing because even the best of businesses can be derailed rather quickly if family money issues come into play. Family holidays can become unenjoyable events. Keep business about business!

If you have a home with equity, you have yet another option—to take out a mortgage. There are a few ways you can do this. One is to get a home equity line of credit. The interest rate is usually variable but you can draw from the line as you need it. Another option is to take out a second mortgage on your home to finance your business, and a lot of people do. Usually, you’ll have the money up front, which means you will need to pay interest from Day One. Money is fairly inexpensive these days. Just be prepared to pay this loan back, whether your business is successful or not.

Credit cards are another option. More than 15% of businesses, including both of ours, started at least in part with personal credit cards. This is OK if you expect to be able to pay it back quickly or can lock in a good deal (a low rate for 12 months or longer) from the bank. If you have an LLC, be sure you take the credit cards out in the name of the LLC and use its employee identification number (EIN) instead of your personal Social Security number. But for startups banks will want a promise that you as an individual will pay off the balance, even if your business cannot.

Many people believe that venture capitalists (or VCs) are the answer. In fact, while VC money gets all the press, it’s not right for most simple businesses. VCs work with less than 1% of businesses and primarily invest in “bugs and drugs:” software, biotechnology, pharmaceuticals and green technology. The best way to get into this community is referrals from others who have received money from a VC. But chances are, if you are starting small and aren’t going green, you won’t get much help from these guys.

Finally, Mary, consider angel investors. Angels are usually local rich guys and gals who back early stage ventures for an ownership stake in your business. Angels invest their own money, unlike VCs. They want very high returns and the potential to earn five to 10 times their original investment within five years. Be cautious here: They will want an equity stake in your business or they will want you to have a plan to take it public. This may not fit your needs.

Good luck!

Further Reading

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