Federal Small Business Grants

November 4, 2010

Federal small business grants are designed to encourage and help Americans launch a new business venture or expand an existing one. To increase your chances of success in both running a small business and in being awarded a government grant there are several steps that you can take to help in both endeavors. Devoting extra time into planning, research and finding the right resources are the key steps to financial and business success.  It is also important to avail yourself of all the free professional help and advice that is available along the way. The one thing that all successful companies both large and small have in common is that they took the time to complete each step of the process. Some of the most important factors to consider before you are ready to apply for any of the many federal small business grants out there are:

• Create a business plan.
• Get as much free professional advice as you can. This should also include any free seminars and courses offered through local community centers and services.
• Make certain that the location of your business (including a business that is run out of your home) complies with all local zoning laws.
• Research all possible sources of financing including state, corporate and federal small business grants.
• Decide on the legal structure that your business will take such as a partnership, sole proprietorship, nonprofit, corporation, etc.
• Register your business name with the appropriate government office.
• Contact your state revenue agency to obtain a tax identification number and register for both local and state taxes.
• Obtain any permits and/or licenses you might need in order to conduct your business.

All the steps listed above including relevant financial information will in some way form part of your business plan. Both lending institutions and grant agencies will require a completed business plan as part of their application package. You should always be prepared to revise any business plan as circumstances warrant and as your business grows or when there are changes in the market. This is an important factor to keep in mind since each grant proposal will be for very specific projects each with their own parameters. The review panel of any granting agency needs to see that you understand the goals of the project and that your business meets all the criteria necessary to follow the project through to completion.

Putting together a professional business plan can at first seem overwhelming but remember that there is an abundance of free information to help you with each step. Of course finding all the federal small business grants that match your business’s skills and experience can be difficult unless you know where to find the right grants. This step is extremely important however since there are so many different agencies and government departments that offer grant opportunities in a wide selection of categories. There is no point in wasting valuable time searching through lists of grant proposals for research and development projects in the telecommunications sector when your expertise lies in programs for disadvantaged youth.

It is also important to be aware of the many grant scams and how to avoid them. Always keep in mind that no one can guarantee that you will be awarded free government grant money and no legitimate granting agency will ever contact you personally with offers of free business grants.

Government Grants to Start a Business

November 2, 2010

Starting and running a business is becoming a popular means for many Americans to gain stability and control over their financial security, especially through today’s tough economic times. Unfortunately, it is the financial aspect that often puts a hold on the ability to launch a new business. There are a number of ways that the federal government can help those who aspire to become successful entrepreneurs. It is often a little known fact that there exists a wide array of government grants to start a business. The federal government recognizes the positive impact that small business plays in both the state and local economies. With this in mind they routinely set aside large sums of money to encourage the growth of small business in every state.

The types of grants that are made available by the government should be an important consideration during the planning phase of any new business venture. Having specific skills and experience in any one of the categories that government grants fall into can greatly increase your chances of being awarded government grants to start a business in your state. One of the main reasons that people have so much trouble finding these grant opportunities is because although they are initiated by the federal government, it is through state and local agencies that they are made available to the public.

Before seeking any type of funding it is important that you determine how much money you will need and exactly what it will be used for. The best way to do this is by creating a business plan as any lending institution or government granting agency will want to see one as part of their application process. Once you have a business plan you can begin searching for grants that match your company’s skills and expertise. This process will help to narrow your search so that if your experience lies in the field of education for example you will not be wasting time wading through pages of grants that are designed for technology research and development projects. Once your search for grants leads you into the area that matches your business it is relatively easy to revamp or alter your existing business plan to meet the specific requirements of a particular grant proposal. It is important to understand that any business plan should be considered a work in progress and should be changed as your business grows, to reflect changes in the market or when applying for specific government grants to start your business.

Completing a grant application form exactly in the manner that is described by the granting agency is extremely important. Incomplete applications or ones that are received after the application deadline will automatically be rejected by the reviewing committee. Always be truthful and make certain that every space is filled in. In the case where a particular question does not apply to you simply fill it in with an N/A. If the grantor has asked for a one page handwritten summary, one that is typed can also cause your application to be rejected.

This process may be time consuming but when you consider that government grants to start a business are funds that never have to be paid back, it is well worth the time that you put into it. The biggest time saving factor in finding the right grant is of course, knowing where to look. Equally important are having a completed business plan and avoiding the many grant scams that offer guarantees of free government money, or ones that charge a fee for filling out grant applications.

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