The great thing about government grants for small business compared with loans is you do not have to pay the grants back! This is a huge benefit for anyone interested in funding a business.
This is also why so many entrepreneurs try to secure grant money for their start ups.
Actually, finding a grant that will fit your needs (and for which your business might qualify) is not that hard.
There are tons of great resources out there, some of which you can get to from my website, below.
The real problem is not finding a suitable grant, but in actually getting it.
The fact you do not have to repay grant money makes them all the more competitive.
Do not worry, though.
There is a lot of support for business owners who are interested in grants.
To actually get a grant, though, you have to be prepared, just as you would need to prepare yourself if you were approaching an angel investor.
Here are some steps that will help you, if you follow them.
Probably you will want to start your grant search at the state level.
Get on the Internet and find websites from the state you live in that address grants.
Better yet, call! Getting hold of the right individual can save hours of searching on the Internet.
For federal grants, check out the Catalog of Federal Domestic Assistance.
Just as you would prepare a business plan for a bank loan or an individual investor, you will need to do the same thing to prepare for applying for grants.
You will need a reasonable projection of cash flow over the next five or so years.
When you write your business plan, make sure you do not just look at the world through rose colored glasses.
Plan for emergencies, and for everything costing at least 20 to 30% more, and taking twice as long to do .
If you are serious about this, you will want the help of an accountant and lawyer.
More about this is Part II.