Start a Grant Proposal Writing Business

Non-profit agencies and many other organizations are always in need of grant funding. As long as there are agencies in need of funding by public and private sources, there will always be an opportunity for careers in grant writing. While some agencies use in-house grant writers, it is often more feasible and cost-effective for agencies to employ the services of an outside contractor who is an expert in the field and has experience writing winning proposals.

Instructions

1. Write a business plan. Your business plan should include details of your background and experience, and what qualifications you have to run a business. Don't worry if you don't have experience in business management. Take stock of your skills and experience from previous positions that you've held and determine how some of those skills might translate to running a business. Your business plan should also include a basic outline of your fees, how you plan to acquire clients, a summary of overhead costs you expect to have, and any other basics of how you plan to run your business.

2. Determine if you will need funding, either in the form of a business loan or funds from another source. Typically, a grant writing business has low overhead costs and can even be run out of your own home. You might want to start out by running your business from home in order to keep your initial costs down, but you can consider moving into office space once your cash flow is consistent. The most funding you will probably need is to cover your living expenses and marketing costs. It's a good idea to have enough money set aside to cover living and operating expenses for the first six months that you'll be in business.

3. Choose a name for your business. You can operate under your own name if you choose, and you wouldn't be required to take any additional steps to claim that name. You can also operate under your surname and a description of your services, such as "Smith Grant Writing," without having to register the name. If you choose to create a different name for your business, you'll have to file to register your business name with the state in which you operate.

4. Decide on a legal structure for your business. If you're going to be working by yourself, you might choose a sole proprietorship. You could also choose to form a corporation or an L.L.C. Another option is to work with a portable employer of record organization, which can eliminate the need to set up a formal business entity and offer other benefits, such as back-office management. There are various advantages and disadvantages to the different structures, and it's advisable to speak with a business attorney for advice on which structure makes the most sense for you.

5. Obtain business insurance. Every business should carry general liability insurance. As a grant writer, you might want to carry Errors and Omissions Insurance. E&O protects you in the event that a mistake you made in a proposal or an omission of information is determined to have caused a detriment to a business you were working with. If you've chosen to work with a portable employer of record, you may be covered under their insurance policies already, so it's a good idea to check into what coverage is offered through various companies.

6. Set up a bookkeeping system. You can use accounting software, such as QuickBooks, or you can hire an accountant to keep track of all your expenses and receipts. Whatever you choose, you should consult an accountant to seek advice about the best way to keep track of your information to avoid hassles at tax time. Decide on a method that you'll use for invoicing your clients. You may also need to file quarterly taxes since you're in business.

7. Start marketing your services and working for clients. You should have a professionally designed logo and business cards, and it may be useful to have a website. You can choose to advertise your business, or you can use your existing network of business contacts to get your first few clients. Once you've worked for several clients, you'll have a solid track record of winning proposals, and you'll generate new business by word of mouth.

Tips & Warnings

• If you choose not to seek the advice of a professional attorney and accountant, you could be missing important details that could get you in trouble with the IRS. Spending a few dollars up front could save you a great deal of money and headaches later.