How to Find a Grant to Fund Your Startup
Derek Goodman
Derek Goodman
If you’re trying to get a new business off the ground, one of the biggest questions looming over you is: how to secure funding? Especially if you are starting off with limited capital but hope to avoid getting bogged down in debt, figuring out how to finance your business can feel like a major conundrum. One solution to this problem is to seek out grants and other programs that offer funding for small businesses. There is a vast number of such programs out there, catering to different types of businesses and to select demographics, so see what programs you might qualify for. You may even be able to launch your startup debt-free.
Should you start your business before you have funding?
If you’re worried about the expenses of getting your business off the ground, you may want to seek at least some additional capital before taking the initial steps of making your business official. However, having a properly formed and registered business may make it easier for you to qualify for certain grants. Additionally, if you are registered as an LLC, this limits your personal liability for debts you incur. It can also protect your personal assets should your business be involved in an accident or a lawsuit. It’s a good idea to register as an LLC either sooner or later, due to the advantages it offers, including additional tax savings. Use a formation service to register LLC in Illinois at low cost and without a lot of administrative hassle.
Do you qualify for a government grant?
There are two general types of grants small business owners can consider: those offered by the government and those created by private funders. You can easily search online on a single database for different types of government grants you may qualify for, according to category, eligibility, agency, and more. So for instance, if you go to “category” and check “arts,” you will find a variety of grants for your arts-related business ventures. You can also find out what grants you are eligible for depending on locale, demographic, and more.
What private grants are available?
Both corporations and nonprofits often offer grants and funding for various enterprises. Generally, these are specific to certain types of businesses. So you should look for grants that are exclusive to the kind of product or service you are offering. You may also qualify for certain private grants based on your identification in a demographic. Some grants are available, particularly for women-owned businesses. There are grants for business owners of color, grants for veteran-owned businesses, and grants for entrepreneurs in a given region.
How can I apply for a grant?
Yes, there are a lot of programs out there, but both government and private grants can be extremely competitive. It’s a good idea to read up on how to stand out in the grant application process. This process alone can often be a good deal of work. For one thing, you should provide a comprehensive business plan as part of your application, and it’s important to follow directions meticulously. Leaving out even one detail, or failing to follow instructions, could get you weeded out. Missing the deadline will also likely disqualify you. Take a look at applications from those who have won grants in the past and learn from them. Also, consider taking a class on grant writing.
The work that goes into grant writing may feel tedious, especially if you are uncertain about your success, but this is actually valuable labor for your business, as it will help you to plan more effectively. The grant writing process offers you a chance to put together a practical blueprint for your company that you will be able to refer to, no matter how you end up being funded. If you’re a small business owner with an interest in the Chicago film scene, check out the information and resources at The Chicago Cinema Collective.
Image via Pixabay
Should you start your business before you have funding?
If you’re worried about the expenses of getting your business off the ground, you may want to seek at least some additional capital before taking the initial steps of making your business official. However, having a properly formed and registered business may make it easier for you to qualify for certain grants. Additionally, if you are registered as an LLC, this limits your personal liability for debts you incur. It can also protect your personal assets should your business be involved in an accident or a lawsuit. It’s a good idea to register as an LLC either sooner or later, due to the advantages it offers, including additional tax savings. Use a formation service to register LLC in Illinois at low cost and without a lot of administrative hassle.
Do you qualify for a government grant?
There are two general types of grants small business owners can consider: those offered by the government and those created by private funders. You can easily search online on a single database for different types of government grants you may qualify for, according to category, eligibility, agency, and more. So for instance, if you go to “category” and check “arts,” you will find a variety of grants for your arts-related business ventures. You can also find out what grants you are eligible for depending on locale, demographic, and more.
What private grants are available?
Both corporations and nonprofits often offer grants and funding for various enterprises. Generally, these are specific to certain types of businesses. So you should look for grants that are exclusive to the kind of product or service you are offering. You may also qualify for certain private grants based on your identification in a demographic. Some grants are available, particularly for women-owned businesses. There are grants for business owners of color, grants for veteran-owned businesses, and grants for entrepreneurs in a given region.
How can I apply for a grant?
Yes, there are a lot of programs out there, but both government and private grants can be extremely competitive. It’s a good idea to read up on how to stand out in the grant application process. This process alone can often be a good deal of work. For one thing, you should provide a comprehensive business plan as part of your application, and it’s important to follow directions meticulously. Leaving out even one detail, or failing to follow instructions, could get you weeded out. Missing the deadline will also likely disqualify you. Take a look at applications from those who have won grants in the past and learn from them. Also, consider taking a class on grant writing.
The work that goes into grant writing may feel tedious, especially if you are uncertain about your success, but this is actually valuable labor for your business, as it will help you to plan more effectively. The grant writing process offers you a chance to put together a practical blueprint for your company that you will be able to refer to, no matter how you end up being funded. If you’re a small business owner with an interest in the Chicago film scene, check out the information and resources at The Chicago Cinema Collective.
Image via Pixabay