Sounds like you are off to a good start with your home business and congrats on that. I know it can be frustrating not having your business to the point you think it should be and often times you are going to feel that way. So just hang in there and do not give up on your dream.
I would not look at financing to get into a retail location unless your cash flow could support it. I would suggest setting up a corporation if you have not done so yet. A corporation will help to separate out your personal assets, credit, and liabilities from your business. You will also want to do a business plan and a funding plan simply because "if you fail to plan you plan to fail". The best way to determine what your cost are is by doing some forecasting and SCORE has some free financing worksheets you can download from their website. The rule of thumb is that you need enough working capital to get you to the point of profitability and the worksheets can help you determine how much that may be.
If your vendors/suppliers have given you terms then you are off to a great start on building out your business credit profile and again hopefully you did this under a corporation.
Once you have good cash flow, fixed your personal credit, and have a solid business credit profile they you are ready for financing.
I hope that helps and let me know if you have any questions or help.
Erik Salmon, CCFC
I am interested in keeping up with the direction you decide to take this. I know a lot of people who rushed to get a physical location and later regretted it. I think there is a lot of emotion tied to the idea of having a brick-and-mortar location somehow implies that I am successful. This can be very dangerous to your cash-flow and it sounds like you are off to a wonderful start working out of your home. Do you think that having a storefront will generate more than enough extra revenue to cover the associated costs? Could you further develop your online strategy to bring in additional revenue without the extra costs? It sounds exciting and I hope that 2012 is a breakthrough for you!
I just realized that I did not address your actual question. Financing a brick-and-mortar operation is a challenge. I tried to do a similar thing a year or so back and failed to find the necessary funding. The ROI is typically just not there for angel investors as they are hoping to leverage technology to see a 10X increases if things go well. The suggestions above about applying through the business and not as you the individual make sense, but I am sure that any traditional lending institution (i.e. a bank) will want a personal guarantee. Using your suppliers to provide some financing through "Net 60" terms and the such will be very helpful if at all possible.