Sunday, January 6, 2008

Grants – A Good Option For Small Business Funding

Money rules in the business world. Even if you have great idea, it can not be brought to fruition until or unless you have money to back it. Forget the start ups, even well running businesses especially small ones run into rough weather if their funding life line suddenly dries up. One route that you can use to get the money you need is to look for a business grant. These grants are available for financing small businesses if you satisfy certain criteria.

Here are some great tips to getting that grant approved.

1) Find out if there is any grant available in your area. Your local grant agency, local council economic development officer are good source to do that. Some business in the same line of business can also give you required information.

2) Find out the reason for your funding requirement, whether it is for working capital, to meet running expenses, or some capital addition. This is important because grants won’t be provided for general running costs, they will support a specific outcome.

3) To avail grants one has to satisfy quite strict selection criteria such as age, gender, ethnicity, unemployment or to those having a specific purpose such as research and development or innovation. If your idea doesn't fit into it don't try to force it. You can always go for Small Business Funding provided by banks and other lenders.

4) Do make personal contact by phone or ideally meet the grants officer personally. Whatever you do don't just send in your application cold. Find out your idea is suitable and it is worth applying in the first place.

5) Prepare a thorough business plan to bring with it but make sure it stands out from the crowd. Most importantly you will need to present a thought provoking vision, a passionate commitment, clear benefits and robust cash flow forecasts.

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