You have embarked on an exciting journey! Congratulations and best wishes. I'm real excited for you
because you are now a member of a very special community! The Entrepreneurial community!
One option for the new start up business looking for financing could be grants.
Grants are outright funding primarily for research and development. They are generally made available
more often than not to charitable or non-profit organizations. However, there are a number of sources
offering grants for other purposes as well and this will require new start business owners to have a
lot of patience and perseverance in wading through the offerings to find the one that will work for them.
Not Dependent on Results
Grants are very advantageous because they do not require that you actually succeed at the process that
originated the grant. You do have to provide information on how the money was used and what the results
were and there is no penalty for failing to accomplish the original goal of the grant proposal.
Grants do not necessarily require that you provide business plans so are easier to work with typically
than a venture capitalist would be.
And Grants do not impose on your new business processes either so you aren't dependent on someone else's
decision on how your business is to be run as would be the case with venture capital investment.
Grants proposals are typically very specific in the qualifying scope so tend to be very time consuming.
They require quite a bit of research.
There's no guarantee that you will receive an approval and funding even after investing all your time
and money getting the proposal just right.
There are many resources available to anyone willing to spend some time researching the marketplace
and this site alone: Government Grants
will give you enough on grants to satisfy your interest for quite a while.
Basics on Grant Application
Before applying for a grant of any kind, make sure you read the RFP (request for proposal) thoroughly
to understand what is being asked.
Also, make sure you find out what the grant awards have been in the past for this organization.
Find one or two previous successful recipients of grants from this organization and ask them what
helped them get the grant accepted and funded.
Another step that will help tremendously is to contact the organization and get more information
about their request and approval process and any other relevant information that would help your
grant be more favorably viewed.
Once you have reviewed the proposal make sure and make doubly sure that this is something you want
Are you just doing this to see if you can get the money but have no intention of following through
with your commitment? This may not be a good idea. You still have to show that you did a good job
of delivering on your commitment.
Another area to consider is your ability to do the job your proposal to this organization stated.
This is known as feasibility.
On this you will also need to determine if you are able to compete favorably with the many other
proposals that are being submitted at the same time as yours.
Although your submission does not require a business plan, there will be a lot of information in it
that is almost a duplicate from your business plan.
Things such as key staff and leadership, proposed budget, capacity, administrative staff, and so on,
are all items found on a business plan.
So, whether or not you are planning on applying for a grant at some point in the future, remember,
you still need to get that business plan going.
Conclusion on Grant Proposals
In the final analysis, grants, like everything else in life require some effort to acquire but are
definitely worth going after. Where else would you be able to get the financing you require so that
you can get your new start business off the ground?
However, don't go into this just because you are desperate to get your new start up business rolling.
Be patient. There are other ways to get your financing.