How to Get Grants to Open a Business
Opening a business takes courage, skills, intelligence and proper financing. Although you may have 20 years worth of leading experience in an industry or the most revolutionary product of the century, you won't get very far in business unless you first have money to invest in it. Getting funding is a necessity for business ownership. Even wealthy individuals are not well advised to place personal assets as business collateral.
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Instructions
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Write a business plan. That's always the first step in getting money for a business. That's true for gaining grants, as well as other forms of financing. The business plan should include: the name of your business; the mission statement of your business; the potential for success in one-year increments up to five years, then in five-year increments for projected success; the ways in which the business is going to meet an unmet need currently in the community (or world at large if it's an Internet business); and other crucial facts.
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Seek a mentor from the Small Business Administration (see Resources). Aside from also helping your complete the business plan, the mentor can assist you in finding the right grant for your business. Even if you don't wish to seek a mentor, you can use its official Website to find individuals, organizations and companies who are willing to give grants to hopefuls wanting to open a business. Some even specialize in granting funding to minorities or women. Take advantage of any grant you might qualify to receive.
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Try your luck with the Catalog of Federal Domestic Assistance. You'll find grants for businesses there (see Resources). The best strategy is to print out the catalog. Apply to as many as possible, always providing thorough information on your business, as well as your business plan.
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See if you qualify for any of the 10 grants offered by the Department of Justice (see Resources). Although this will be less common for a for-profit business, see if you fit into any of the criteria.
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Register at the Federal Commons. The website offers "Find. Apply. Succeed." That's what you can do with one of its business grants. Register with the website, and apply for the grants that can help your business get truly off the ground. You can apply online and even check the status of an application--all over the Internet. You will, however, need to have all your business information close at hand.
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Check with your local library for a database of philanthropists (if it's a non-profit) and investors for your business. Write a cover letter with a summary of your business plan to every lead you find. You're going to face a lot of rejection. It's hard to get people--or companies--to part with money, but you increase your odds with every submission you make.
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Tips & Warnings
Don't quit your day job until your business gets off the ground. Unless you have savings or are independently wealthy, it's dangerous to place all of your expectations into a business. A huge percentage of businesses fail in the first year, and you don't want to be left without a backup plan.
