Grants are one of the best ways to get the funding needed to start a new business. They can be rather difficult to get because they are considered “free money”. Grants have no interest and are non-returnable but have a number of strings attached. To obtain a grant the business owner needs to be able to convince the awarding body that they deserve their support. This means filling out a bunch of applications and providing any requested information.
Business owners should know what type of grant they are looking for before they start the application process. A business owner can apply for a grant at numerous locations including charities, community foundations, commission offices, development agencies, or even local government branches. Each has there own pros and cons and should be thoroughly researched by the grant applicant. The acceptance of grants is usually decided upon four factors: location, size type of organization, and project purpose.
The location of the business’s activity is very important when it comes to seeking a grant. If the type of company asking for a grant is not favored in the area than it will most likely be denied. For example, business owners that are looking to settle in areas that have a high unemployment rate and considered disadvantaged will have a higher chance of obtaining a grant because a new company would have a positive outcome. Most of the time creating more business is favored. However, if their are a handful of businesses offering the same thing in one area it will be more difficult to obtain a grant.
Grants may only be available to businesses of a certain size. Depending on the area those offering grants may be looking for a company that is still growing with a small number of workers. Others will be looking for a well-established company with many employees. This goes hand in hand with the location of where the business is looking to break ground and should be researched before applying for a grant.
Although grants are available for every type of business imaginable, there are some types of organizations that are more favored than others. For example, if a business owner is trying to get a grant in a big city they are more likely to accomplish their goal if they are focused on tourism, transportation, or technology. The business must be appropriate for what the area needs.
The most important factor for a new business is their purpose and plans for the future. Being able to show a yearly plan that dictates training, improvements, importing, exporting and development will be greatly beneficial to those seeking a grant. Being clear what the grant money is going to be used increases the chances that a grant’s application will be passed. It should be noted that businesses that also include their plans to be environmentally friendly have a greater chance of being awarded a grant.