Writing A Business Plan for Business Grants

Some claim that business grants are everywhere; some claim they are as rare as a trout tooth. The truth, dear Watson, lies somewhere in between.

"Business grants are everywhere!"

If you have done so much as a single search for "business grants", you have most certainly discovered those web sites that proclaim, "They're here -- in my directory. Satisfaction guaranteed, m'am."

Yuk. I can hear the carnival hawker in the echo.

And it's not just one site that makes such claims. No, it is many sites that make this claim. One gives your money back if you send in a reject letter from an agency you applied to; another says you are buying "soft goods" that can't be returned. No matter. It's all the same pitch.

"Business grants are nowhere!"

When I found one site that claimed that business grants are a fantasy, it was actually a relief. Wow, an honest person.

Well, this person may have been honest, but she hasn't done her homework.

"There are business grants to be had." (This is my voice)

They are not growing on trees, but they are there. Consider, for instance, these scenarios:

Scenario No. 1

A brilliant scientist wants to team up with a university, use their Ph.D. fellows to do research, and pin down the gene for one particular type of cancer. She has good credentials and high hopes. Where can she get a grant to start her company?  

Answer: The U.S. National Science Foundation may indeed have something. (If the company proceeds to make this discovery, it is still able to sell stock, take in investors, or sell the patents. In short, it can still be profitable.)

Scenario No. 2

An experienced pre-school teacher sees a tremendous need to provide pre-school care for children in a low income area so their parents can go to work in a new plant being built nearby. Where can she go to get a grant to start her business?  

Answer: The U.S. Dept. of Education is a good bet. The local county or state government might have money available, too. Even the new company being built might chip in with space and supplies. (If the company proceeds to be very successful, and even lucrative, it can still open more branches, franchise, or expand. In short, it, too, can still be profitable.)

Scenario No. 3

A second generation Indonesian business person sees the devastation in her homeland caused by the tsunami. With her business contacts and experience, she knows she can help re-build her country. Where does she go for a grant?  

Answer: USAID probably has $20 million or so on hand for just such a project. In fact, as I write this, that is exactly the situation. (This is not a "profit making" venture. However, somewhere in the $20 million grant, she will of course pay herself, and will be able to lay a strong foundation for a future business.)

Are these three examples just aberrations? Emphatically, NO -- there are LOTS MORE where these came from. There are a number of grants directories on the market. I recommend this grant directory. It is pretty comprehensive and will help you put together your proposal.

The New Wave of Grants For Start Up Businesses

At last business grants seem to be coming into their own.  There are several new organizations that are spear heading grants for those who would not otherwise qualify for any type of assistance.  In particular check out these:

Kiva.  Kiva has been around for a while, and now offers loans to US based entrepreneurs as well.  Both start up and existing businesses qualify.  While these are not technically business grants, a reasonable business plan can land your company a loan that it might not get otherwise.

100 Urban Entrepreneurs.  Three brilliant, successful entrepreneurs founded this organization with the goal of helping 100 minority business get start up funding with business grants that were never before available to them.

Lighter Capital.  This is actually a small business loan to unusual types of companies, but the terms are so generous that it works like a grant.

Keep an eye out.  Spiffy up your business plan.  Other companies are beginning to form to fill this much needed void for business grants.

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