If you have a nest egg sitting in investments or a bank account, that's great: maybe it's a good source of business funding. First, however, ask yourself what you've been saving for. If it's sitting in a retirement savings account, you may be exposing yourself to tax penalties by withdrawing it early. In addition, contributing to retirement savings accounts can be tough during the first few years of a home-based business: That money may be worth more to you in terms of securing your retirement than it would help in launching your business. Also, take a look at how much your investment is worth. If, for example, it's in stocks that have lost value since you bought them, you'll be making that loss very real if you withdraw the money now.

You can also consider using the equity that you've built up in your home (that is, the difference between what your house is worth and how much is left to pay on your mortgage) as a source of funding — it's possible to take out a loan or second mortgage based on that equity figure. However, you have to understand the risks involved. If the business fails, and you can't come up with the money to repay the loan, you may be forced to sell your home in order to pay it back — or even worse, the bank could repossess your home.