Let’s face it; starting a small business can be expensive. There’s the old adage, “you have to spend money to make money.” This is a very true statement when it comes to starting any business venture. However, there are sources of money out there which can help you out. Finding funding sources takes a bit of determination and fortitude but it is possible.
One option to help you fund your small business is a grant. Contrary to popular belief, grant money is not available for small businesses directly from the federal government. Grant money is available through local state governments and private agencies.
Finding a grant which fits your needs can be a long, frustrating task, but if you stick to it, find the right one, apply and get the grant, it is free money for you to spend on your business. Getting a grant is well worth the time and effort!
Grant programs for small businesses are generally very specific in their requirements and award money only to companies which fit their requirements 100%. Many grant programs are available in fields such as education or medicine. The requirements to obtain a grant are generally based on one or more of the following factors; location, sales to date, years in business, business owner’s sex or race, and the purpose funding is needed.
Because finding a grant can be a very time consuming proposition, many small businesses need to consider if they can hire a consultant or someone familiar with the grant application process to complete the process for them. Another consideration is whether or not the time it will take to find a grant, and apply, will be worth the grant money in the long-run. Is the time better spent with marketing and selling your products than looking for and applying for grant money? This depends on your skills, your business and also on the money available in your specific area.
The best place to look for small business grants is the Catalog of Federal Domestic Assistance (CFDA). The CFDA contains thousands of grants from all government agencies and is available for free. You can find this catalog online and in your local library.
Competition for grants is fierce. You will be competing with many other businesses for a limited amount of funds. For this reason you will need to be 100% prepared and provide all of the requested information as soon as possible after a request from the grantor. Make sure that anything you send is complete and accurate. An excellent business plan for your business will likely be required and can go a long way toward showing the professionalism of your business.
Finding the right grant opportunity for your business is not simple and may take you a significant amount of time. However, the grant you receive may go a long way toward the success of your small business. Taking the time to research and apply may very well end up being worth your time and effort.
