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Business Grants
by Jeff Cohen
Depending on what kind of business you’re
planning to start, you may be able to get a home business grant.
These grants are usually government-issued. They are, effectively,
‘free money’ – as long as you use the money for what you say
you’re going to use it for, you don’t ever have to pay it back.
Even if you don’t think you would qualify for anything, you
might be able to modify your business plan subtly so that you
do.
Why Would They Do That?
The money is designed to encourage specific kinds of businesses
– it will always be given to you for a very specific purpose.
Also, grants almost never cover the full amount of whatever
it is you want to do, leaving you to make up the rest yourself.
Note that not all grants come from the government. Some grants
are given out by charities trying to further a cause, or by
local community organizations.
Areas commonly covered by grants include businesses that are
exporting (every government wants exports to be more than imports),
businesses that will provide training to their employees, businesses
that are doing useful research and businesses that are providing
services and jobs in places that are candidates for 'regeneration'.
You may also be able to find extra support for environmentally-friendly
businesses, and if you're a woman or a member of an ethnic
minority then that could qualify you for a grant too.
Training Grants
Grants for training are some of the best ones out there --
if you're planning to have any staff, you should really look
into them. Basically, you get a grant towards the cost of sending
some of your employees to a training course. This is good for
you, as you can train your employees more cheaply, and they'll
do a better job afterwards. It's good for them, as they learn
new skills or improve the ones they have and improve their
career prospects for the future. Finally, at least in theory,
it's good for the economy, as there will be a greater diversity
of skills available in the job market.
Research Grants
If your business is trying to solve a problem or develop an
invention, you might be eligible for a research grant. This
can be especially helpful for covering the costs of things
like patent applications. Watch out, though - application for
research grants is some of the fiercest out there.
Location, Location, Location
Whatever kind of grant you're going for, the biggest factor
in whether you get it will probably be where you're based.
Grants tend to be locally-focused, and especially targeted
in areas that are deemed to have a lacking economy. Since you're
a home business, you might even find it worth researching what
is available in each area, and moving home strategically.
It's Hard to Get a Grant
Beware of anyone who makes grants look easy. There are all
sorts of ‘grant agencies’ who want to take a fee, and ‘guarantee’
that they’ll get you a grant. They won’t – as with almost all
things like this, never pay up front. However tempting their
offer might seem, you should be applying for the grants yourself.
This will generally involve submitting your business plan plus
a letter of about 1,000 words saying why you should get the
grant in question -- you can't really use the same letter for
each grant. Pick what you apply for carefully, as it's a waste
of time to apply when you don't meet the criteria properly.
If you want to make sure you're applying correctly, the best
thing to do is to phone up the organization offering the grant.
They'll usually be eager to offer help and advice. Still, don't
be upset if you don't get chosen, as it might just be that
there were more qualifying candidates than there was money.
Other Benefits
Any grant you get is likely to bring you to the attention
of some kind of agency or organization who wants to help you
in other ways too. They might help you get onto courses if
you're lacking any business skills, or even provide a mentor
to guide you. You might think it all sounds a little silly,
but believe me, when you run a home business you need all the
help you can get.
# # # # # SolveYourProblem.com : 2007
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