Beginning a new business is a very exciting time, but determining how the startup will be funded is not always as exciting. Small business owners may not always have the proper funding to support their new business themselves, but aren’t looking to take out a loan. Loans acquire interest as time goes on, which can be a large burden, but business startup grants do not. Grants do not acquire interest or have to be repaid, and they can be received through multiple sources.
Business funding may be obtained through the federal and state governments, local groups, and private foundations. Each source of funding may have different qualification requirements, so when completing some research, it is important to determine which outlet would be the best fit for your small business.
A majority of federal business startup grants are geared to those who are completing new research, developing new technologies, and those with involvement in renewable energy and/or agricultural-based companies. State governments are often looking to fund small businesses that can help boost economies within their state. This can be done based on the location of the business and its willingness it create new jobs in underprivileged areas, entice new industries, and repurpose old buildings to help revitalization. Local and private groups that are giving business funding are looking for small businesses that are going to achieve similar goals to those given on the state level. For some startup businesses, the best option for them may be the process of relocating their business, which helps their chances of receiving business startup grants, and helps boost a new local community.
Business startup grants require tedious and time-consuming research, so it may be in the owners best favor to have a detailed business plan available prior to completing any applications. Having a strong business plan will help the grant judges to know what your businesses mission and goals are, as well as seeing what your future plans are. It may be in your best interest to have a professional writer review the business plan, or assist in writing the plan, so that receiving a business startup grant may be more achievable. If a small business owner is concerned with what kind of grant options are available for them, it would be in their best interest to check out the sba.gov website. The Small Business Association website provides a tool that determines if a small business is eligible for a federal grant or not. This can help determine which source would be in a business’s best interest to begin looking for business funding through.