Small Business Articles
Simple Steps To Finding Small Business Grants
February 18, 2009
If you’re excited to start your own business and ready to build your business as big as it can be in any economy; you’re part of a small breed of Americans that see the potential out there for a small business owner and choose to go out and get it. You may have everything it takes to be a successful entrepreneur, but the one thing that can stop nearly any business, even a low cost home business, in its tracks is money. Not having the proper startup cash to get off the ground will keep you from ever opening and not having enough to get through the first six months of operation can bring your business to a halt during the slower months. Fortunately there are a few options out there to help virtually anyone from any economic position be able to start and sustain a small business, and these business opportunities a world of relief for qualified small business owners.
Everyone has heard of small business loans, and while they are great for the average business, if you could qualify for a grant and get the money for free, why wouldn’t you? Grants for small businesses are typically handed out for two reasons: to start a small business or to expand a small business. Keep in mind with both of these types of grants that even though you may get enough money to cover the cost of startup for your business, you still need to account for the first six months of operation, so that you can keep your business afloat. Another key point to keep in mind when starting the grant process is that there are currently no federal government grants for small businesses, so the type of grant you will be eligible for will vary greatly from state to state. This doesn’t mean that you need to move to a different state to start your small business, it just means that if you are in a state where you do not meet the requirements for a grant, your best option may be to seek a federal loan from the SBA, which is generally a much easier route for first time business owners that to go through a bank.
Before applying for a grant from your state, take a close look at your state’s requirements and what kind of grant programs they offer. Some programs may target brick and mortar small businesses, but not be available for work at home businesses, while others may be geared towards first time small business startups and not applicable to franchises. There’s no point in starting down the long process of applying for a grant, only to realize that you don’t qualify. Secondly, you will most likely want to hire the services of a consultant who is familiar with your state’s grant process and who will either do the lion’s share of the work for you, or be there to answer questions as you go through the process. If you will be doing the work of applying on your own, bear in mind that the grant process will take a lot of time, both in preparation and in waiting for approval, so it’s important not to place all your eggs in one basket. What I mean by this is that if you are trying to start a new business for the first time and have decided to try to start it with a grant, you may want to explore other funding options while you are waiting for approval. Round up a group of investors who are interested in your business and fill them in on your grant process. After the long wait, typically one year, if you get the grant, you can keep the investors around to help fund the ongoing operation until the business becomes profitable, but if you don’t get the grant, the investors will be able to help you still pursue your dream.
The grant process can be long and difficult, and for some it may be too much hassle to deal with, but for many entrepreneurs, the prospect of working a little harder to have the government pay them to start their own business will be well worth the effort. Whether starting a work from home business, a franchise small business or something new and unique that no one has ever seen before (and therefore, no bank would likely be interested in lending for) a small business grant may be your best bet. To get started, simply visit the website for your state’s department of commerce. Most states will have all of the proper information readily available on the web, however if you have trouble locating the information for your state, check out grants.gov and you’ll find more information that you would ever need about the grant process, grants available in your area and the easiest ways to apply and start heading down the path of a small business grant.
If you’re excited to start your own business and ready to build your business as big as it can be in any economy; you’re part of a small breed of Americans that see the potential out there for a small business owner and choose to go out and get it. You may have everything it takes to be a successful entrepreneur, but the one thing that can stop nearly any business, even a low cost home business, in its tracks is money. Not having the proper startup cash to get off the ground will keep you from ever opening and not having enough to get through the first six months of operation can bring your business to a halt during the slower months. Fortunately there are a few options out there to help virtually anyone from any economic position be able to start and sustain a small business, and these business opportunities a world of relief for qualified small business owners.
Everyone has heard of small business loans, and while they are great for the average business, if you could qualify for a grant and get the money for free, why wouldn’t you? Grants for small businesses are typically handed out for two reasons: to start a small business or to expand a small business. Keep in mind with both of these types of grants that even though you may get enough money to cover the cost of startup for your business, you still need to account for the first six months of operation, so that you can keep your business afloat. Another key point to keep in mind when starting the grant process is that there are currently no federal government grants for small businesses, so the type of grant you will be eligible for will vary greatly from state to state. This doesn’t mean that you need to move to a different state to start your small business, it just means that if you are in a state where you do not meet the requirements for a grant, your best option may be to seek a federal loan from the SBA, which is generally a much easier route for first time business owners that to go through a bank.
Before applying for a grant from your state, take a close look at your state’s requirements and what kind of grant programs they offer. Some programs may target brick and mortar small businesses, but not be available for work at home businesses, while others may be geared towards first time small business startups and not applicable to franchises. There’s no point in starting down the long process of applying for a grant, only to realize that you don’t qualify. Secondly, you will most likely want to hire the services of a consultant who is familiar with your state’s grant process and who will either do the lion’s share of the work for you, or be there to answer questions as you go through the process. If you will be doing the work of applying on your own, bear in mind that the grant process will take a lot of time, both in preparation and in waiting for approval, so it’s important not to place all your eggs in one basket. What I mean by this is that if you are trying to start a new business for the first time and have decided to try to start it with a grant, you may want to explore other funding options while you are waiting for approval. Round up a group of investors who are interested in your business and fill them in on your grant process. After the long wait, typically one year, if you get the grant, you can keep the investors around to help fund the ongoing operation until the business becomes profitable, but if you don’t get the grant, the investors will be able to help you still pursue your dream.
The grant process can be long and difficult, and for some it may be too much hassle to deal with, but for many entrepreneurs, the prospect of working a little harder to have the government pay them to start their own business will be well worth the effort. Whether starting a work from home business, a franchise small business or something new and unique that no one has ever seen before (and therefore, no bank would likely be interested in lending for) a small business grant may be your best bet. To get started, simply visit the website for your state’s department of commerce. Most states will have all of the proper information readily available on the web, however if you have trouble locating the information for your state, check out grants.gov and you’ll find more information that you would ever need about the grant process, grants available in your area and the easiest ways to apply and start heading down the path of a small business grant.
