Business Grant
A Business Grant is money that somebody (usually the government, but sometimes also a foundation or an individual) donates to somebody else who wishes to either establish a business, or grow one that already exists. Grantors usually target Business Grants towards a particular group of individuals (Women, Hispanics and so on) because the Grantor would like to encourage more members of that group to be in business. Sometimes a particular type of business (for example pre-school play-school) may be targeted too.
When you read this article, you will discover ways to identify a Business Grant opportunity that is good for you, and how you could use it to further your business interests. Why take money out of your own pocket, when you could get a cash-flow injection by submitting an application for a Business Grant?
The reason why most new firms fail is that they run out of money. This is often because while their suppliers will not give them credit yet, their customers also will not pay them anything until they have done the work. This results in money out before money comes in – when this problem hits you, you will quickly learn what cash flow is all about. Lack of positive cash flow has also prevented many a promising business from expanding to the critical mass that it needs to achieve. The American government understands this harsh reality, which is why it has put various schemes in place to assist disadvantaged people to grow their business.
Whichever one you choose to apply for you will come up against the same reality – play the rules of their game or they are likely to ignore your application. This translates into two things:
- Do not apply for a Business Grant for which you do not qualify – if they want female African-Americans and you are not one of these then look somewhere else for your Business Grant.
- Do not hassle State Officials by handing in an incomplete or untidy application, or doing anything else to irritate them. They hold the cards to your Business Grant and to your future, so buckle up and do it their way.
Specialist Programs
- Every American State has its own business goals – things that it would like to see happen in its jurisdiction. Keep a weather eye out when you watch the news on television, and follow up when you see something of interest. You do not have to be living in a particular State to apply, but will have to locate your business there if your application is successful. You could also just wander into the office of the State Commercial Department, or speak to your local representative. You’ll find some great ideas to get you started here: http://usgovinfo.about.com/od/moneymatters/a/hotprospects.htm
- Use what you already have. For example, the government would like to see more females in business, so, if you are a female, you actually have a slight advantage.
- State and government contracts are another way to generate extra income while you wait for your Business Grant to come through. In fact, the American Government is committed to placing a portion of their orders with small firms, especially where they are owned by disadvantaged people: http://usgovinfo.about.com/od/moneymatters/a/contractmain.htm
Writing Your Application
You need to do the following things right if you are to stand a chance of getting a Business Grant, as opposed to having your application filed away in the trashcan:
- In the first instance, you need a proper Business Plan that describes your objectives, and why you need a Business Grant to succeed.
- The second piece of the paper chase that you need is a well-founded application form, together with all the other documents that the grantor wants.
Remember, first impressions count and your application will sit in a pile of similar documents submitted by other hopefuls. Make sure that your application looks good at first sight, and provides the official with everything that they need. Why rush things and irritate people, when with a little effort that could be on your side from the first page onwards.
If you need money for business purposes and quality in principle for a Business Grant, then you really should apply for one. See the resources on this page for sources for Federal Grant Money.
