How to Apply for Grants to Start a Small Business

Every individual with a new product idea and a belief in his work ethic wants to start a small business. The barriers to small business ownership are high for the average person because of production costs, payrolls and taxes. However, you can obtain money to turn your idea into a successful product when you apply for small business grants through the government or private organizations.

Instructions

Difficulty: Moderately Challenging

Start a Small Business With Grant Money

1. Consider the Small Business Innovation Research and Technology Transfer grant programs for your new business. These federal grant programs dole out nearly $2 billion in funds to businesses with a focus on developing technological solutions to common business issues. The Small Business Administration promotes these grants actively on its website, as it is an important initiative intended to improve IT infrastructure on a large scale (see Resources below).
2. Formulate a hypothetical budget that combines your funds and potential grant money. The use of a simulated budget helps grant organizations choose worthy candidates based on financial need and their potential use of grant money.
3. Define your company's goals with a clearly written statement of purpose. This initial statement should be included on the opening page of the application, establishing the overarching goal of your company.
4. Provide schematics, reports and information on future projects that will be influenced by grant money. For example, a software development company could submit plans for new data-processing software in the hopes of getting a research grant from a private provider. Grant reviewers, who see your attention to detail and commitment to a product, may be inclined to provide grant funds.
5. Compile an updated contact list before you apply for a small business grant. Start the contact sheet with your top-level employees and include additional contacts who can provide details on supplementary materials in the application.
6. Submit your grant applications to a rigorous review process before you apply for funds. Send non-sensitive application materials to friends, family and colleagues to clear up grammatical errors. The final review process should be an extensive reading session with your staff aimed at correcting problems specific to the company or industrial sector.

Tips & Warnings

• Develop an honest budget and list of funding needs during the grant application process. Your small business will need grants in the future for new product lines or research endeavors. If you give an assessment of your funding needs that is accurate, you gain the trust of valuable grant organizations.