Dear Sister Single Mom,
Welcome to Financial Help For Single Mom's, my blog dedicated to helping you rebuild your life. Since most relationships end over financial problems, it stands to reason that if you're recently suffered a separation, you probably have some money problems and financial help for single mom's is exactly what you need to get back on track.
Financial help for single mom's comes in many forms. Welfare assistance, scholarships for school, subsidized daycare, grants for starting a business and going to school, and so much more. There are so many options available, like legitimate work at home jobs, that just putting together a system for utilizing them all can be a job. So I've created this blog to try to help you organize and prioritize what you need to do.
I found myself a single mother during a financial crisis in my family. I was also pregnant at the time, and suffering from a severe case of postpartum depression following the birth of my first child. I was emotionally and financially distraught to say the least, and trying to find a job while pregnant was nigh on impossible, compounded by the fact that working would have taken a toll on my already weakened and fragile mental state. My first was only 22 months old and though I got subsidized daycare for him, the hours didn't mesh with any job, so I needed to find a way to earn an income. I found it by starting my own small online business. I now have approximately 20 websites that, altogether, earn a decent passive monthly income, and I provide several online services, such as writing and Virtual assistant work that give us extra money when needed or wanted.
If you have found yourself a single mom, struggling for financial help for single mom's and support and guidance, I am here to be your friend, mentor and guide. I will keep comments on this blog enabled so that you can always ask me anything you wish and I will reply. There are 5 steps you need to take toward achieving financial stability are located in the sidebar of this blog and they are:
1.) Sign Up For My "Financial Help For Single Mom's Newsletter." It's 100% FREE and I send you new information as I find it straight to your email.
2.) Get a FREE pre-paid credit card. Just fill out one page with your name and address, (no social security number or bank account information will be asked for.
3.)Get A Free CD on Government Grants, it's $2.29 for the shipping and handling, but the CD is free and it's also free to apply for grants.
4.) Get the Google Money CD, $1.97 for the shipping and handling. This CD will give you the solid foundation you need to learn how to make money with Google.
5.) Read my book "The Single Mom's Survival Guide." This book will give you a lot more than just 'financial help for single mom's.' It offers you emotional support, ideas on coping with the stress of being a single parent, pointers on where to get all kinds of free stuff for you and your family, and most importantly, ways to re-establish yourself and pick up the pieces after a break up. It even has a section on helping your kids cope with the split. You can download this book free HERE.
Showing posts with label grants for single moms. Show all posts
Showing posts with label grants for single moms. Show all posts
Saturday, March 14, 2009
Financial Help For Single Moms- Home Business Ideas
Here are some excellent businesses that you can start, operate and grow from your home. All these work at home businesses have the following desirable features:
**Low Startup Costs
**Ease of Entry
**High Income Potential
**Home Based and Operated
**Worldwide Sales Potential
**Residual, Recurring and/or Passive Income Potential
1. Consulting
A consultant is someone expert in a field who, for a fee, advises businesses or individuals on various matters of concern.
Many times we tend to feel that our knowledge, skills or abilities are nothing unique. However, many lack those same assets and would gladly pay us for our knowledge and services.
Although it is possible to make a living from consulting with individuals, the big money is in performing services for businesses.
Do you have knowledge of bookkeeping, accounting, tax or similar business matters? Some have made excellent money specializing in small business consulting.
Are you a computer hobbyist with business or internet experience? You could make money in web design, internet marketing, search engine optimization, or some other specialty.
Some lawyers have combined their legal experience with their love of the Internet and specialized in intellectual property and computer law.
2. Finding
A finder is someone who, for a fee, finds something needed by a business or individual. A finder`s fee is the amount paid to the finder for locating what was required.
Finder`s fees are paid for finding money (loans, equipment leasing, et cetera), equipment (mining, construction, et cetera), personnel, companies for sale, locations (fast food franchises, vending machines, et cetera) and just about anything else that people are willing to pay for.
Simply match sellers with buyers and you can earn finder`s fees.
3. Auctions
An auction is an event where items are sold to the highest bidders. An internet auction, online auction or e-auction is an auction where you can buy and sell items on the Internet.
Many thousands now make their living or fortune from selling products and services on eBay and similar auction sites. So can you!
4. Drop Shipping
Drop shipping is a method of selling products without stocking inventory yourself. When you make a sale you contact the manufacturer or authorized distributor who ships it to the customer with your invoice and shipping label. Advantages include no warehousing, shipping, or inventory costs.
5. Affiliate Programs
An affiliate or associate program is a method of selling products on the internet through commission sales. When someone you refer to a website buys, the company you are an associate of (or affiliated with) pays you a commission.
In many cases, it is also possible to make money from the efforts of people that you introduce to the affiliate program. You can also expand your product line by joining and promoting more than one affiliate program.
6. Webmastering
A webmaster is a an internet specialist reponsible for all aspects of web sites.
Areas where businesses need assistance include web site design, logo, banner or graphic design, web hosting, e-commerce, internet marketing, web programming, scripts, security, web site maintenance, copy writing, mailing list management, and many other areas.
7. Self-publishing
A self-publisher creates, produces, and sells information products. Information products may be in the form of books, booklets, videos, audio cassettes, compact disks (CDs), electronic books, files, databases, private websites, and other media.
The information products that you create are unique. You have exclusive control and ownership of your own products.
8. Instant Publishing
An instant publisher sells information products produced by someone else who grants them reprint (or resale) rights. Often self-publishers will sell such products to complement their own information products.
9. International Trade
International trade involves importing and exporting. Importing involves buying goods and services from suppliers in another country. Exporting involves selling goods and services to customers in another country.
10. Mail Order
Mail order is a method of conducting business through the mail. Goods and services can be sold through direct mail (and also via catalogues, magazines, newspapers, radio, television, web sites, and other media). Customers can order by mail or by other means (fax, telephone, internet, et cetera). Delivery of orders can be made by mail or alternative means (such as by courier for physical goods or by fax, e-mail, telephone, or electronic files for information).
**Low Startup Costs
**Ease of Entry
**High Income Potential
**Home Based and Operated
**Worldwide Sales Potential
**Residual, Recurring and/or Passive Income Potential
1. Consulting
A consultant is someone expert in a field who, for a fee, advises businesses or individuals on various matters of concern.
Many times we tend to feel that our knowledge, skills or abilities are nothing unique. However, many lack those same assets and would gladly pay us for our knowledge and services.
Although it is possible to make a living from consulting with individuals, the big money is in performing services for businesses.
Do you have knowledge of bookkeeping, accounting, tax or similar business matters? Some have made excellent money specializing in small business consulting.
Are you a computer hobbyist with business or internet experience? You could make money in web design, internet marketing, search engine optimization, or some other specialty.
Some lawyers have combined their legal experience with their love of the Internet and specialized in intellectual property and computer law.
2. Finding
A finder is someone who, for a fee, finds something needed by a business or individual. A finder`s fee is the amount paid to the finder for locating what was required.
Finder`s fees are paid for finding money (loans, equipment leasing, et cetera), equipment (mining, construction, et cetera), personnel, companies for sale, locations (fast food franchises, vending machines, et cetera) and just about anything else that people are willing to pay for.
Simply match sellers with buyers and you can earn finder`s fees.
3. Auctions
An auction is an event where items are sold to the highest bidders. An internet auction, online auction or e-auction is an auction where you can buy and sell items on the Internet.
Many thousands now make their living or fortune from selling products and services on eBay and similar auction sites. So can you!
4. Drop Shipping
Drop shipping is a method of selling products without stocking inventory yourself. When you make a sale you contact the manufacturer or authorized distributor who ships it to the customer with your invoice and shipping label. Advantages include no warehousing, shipping, or inventory costs.
5. Affiliate Programs
An affiliate or associate program is a method of selling products on the internet through commission sales. When someone you refer to a website buys, the company you are an associate of (or affiliated with) pays you a commission.
In many cases, it is also possible to make money from the efforts of people that you introduce to the affiliate program. You can also expand your product line by joining and promoting more than one affiliate program.
6. Webmastering
A webmaster is a an internet specialist reponsible for all aspects of web sites.
Areas where businesses need assistance include web site design, logo, banner or graphic design, web hosting, e-commerce, internet marketing, web programming, scripts, security, web site maintenance, copy writing, mailing list management, and many other areas.
7. Self-publishing
A self-publisher creates, produces, and sells information products. Information products may be in the form of books, booklets, videos, audio cassettes, compact disks (CDs), electronic books, files, databases, private websites, and other media.
The information products that you create are unique. You have exclusive control and ownership of your own products.
8. Instant Publishing
An instant publisher sells information products produced by someone else who grants them reprint (or resale) rights. Often self-publishers will sell such products to complement their own information products.
9. International Trade
International trade involves importing and exporting. Importing involves buying goods and services from suppliers in another country. Exporting involves selling goods and services to customers in another country.
10. Mail Order
Mail order is a method of conducting business through the mail. Goods and services can be sold through direct mail (and also via catalogues, magazines, newspapers, radio, television, web sites, and other media). Customers can order by mail or by other means (fax, telephone, internet, et cetera). Delivery of orders can be made by mail or alternative means (such as by courier for physical goods or by fax, e-mail, telephone, or electronic files for information).
Finding Additional Support for your Home Business
You might wonder although you really want to start a business, where could you find support for your home business when you have limited start up costs to begin a whole new business? There are many ways to work around this. Here are a few options you can consider.
Consider a loan from a family member. While all family loans are not created equal, you never know who will be your biggest supporter in your new business venture and would gladly loan you a small amount of money for your business start-up.
Investigate small business loans that cater to women and home businesses. Some grants are also available (and you don't have to pay them back!) You must be prepared to undergo credit and reference checks, attend business classes, and disclose financial aspects of your personal and business life.
Try and save in other areas of your life. Not a coupon person? Start using coupons and put the total amount you save with each grocery trip into a special "new business fund". Do you order takeout a couple times a week? Cut back to once a week or once every other week, and put that money into your "new business fund" too.
In addition to financing of your home business you need a bit of advice and tips to get you going. Operating your business without a computer will put you at an immediate disadvantage. They are simply too valuable as a time-saving tool. There are plenty of resources on the internet offering support for your home business. These provide handy information with tips and advice, ideas and many more….
You cannot be an expert on everything. Get assistance early from as many sources as possible. Talk to people who have similar experiences on doing a home business. Talk to your friends, family and who have succeeded in doing home business. Start networking now! The friendships and alliances you build now could become extremely useful in the future when you launch your business.
Seminars dealing with "special topics" have actually been around for decades, and are an older form of marketing and information exchanges. Seminars are simply a group of people coming together for the discussion and learning of specific techniques and topics. There are a wealth of knowledge usually, presented by many speakers at one time in one place. A lot of "learning" at one clip, with most material compressed into two or three days' worth of time.
So don’t put off starting your own home business - by investigating some of these alternatives, you may discover that you really can afford to start your own business!
Consider a loan from a family member. While all family loans are not created equal, you never know who will be your biggest supporter in your new business venture and would gladly loan you a small amount of money for your business start-up.
Investigate small business loans that cater to women and home businesses. Some grants are also available (and you don't have to pay them back!) You must be prepared to undergo credit and reference checks, attend business classes, and disclose financial aspects of your personal and business life.
Try and save in other areas of your life. Not a coupon person? Start using coupons and put the total amount you save with each grocery trip into a special "new business fund". Do you order takeout a couple times a week? Cut back to once a week or once every other week, and put that money into your "new business fund" too.
In addition to financing of your home business you need a bit of advice and tips to get you going. Operating your business without a computer will put you at an immediate disadvantage. They are simply too valuable as a time-saving tool. There are plenty of resources on the internet offering support for your home business. These provide handy information with tips and advice, ideas and many more….
You cannot be an expert on everything. Get assistance early from as many sources as possible. Talk to people who have similar experiences on doing a home business. Talk to your friends, family and who have succeeded in doing home business. Start networking now! The friendships and alliances you build now could become extremely useful in the future when you launch your business.
Seminars dealing with "special topics" have actually been around for decades, and are an older form of marketing and information exchanges. Seminars are simply a group of people coming together for the discussion and learning of specific techniques and topics. There are a wealth of knowledge usually, presented by many speakers at one time in one place. A lot of "learning" at one clip, with most material compressed into two or three days' worth of time.
So don’t put off starting your own home business - by investigating some of these alternatives, you may discover that you really can afford to start your own business!
Financial Help For Single Mom's- How To Finance Your Small Business Start Up
It all starts with a great idea, an idea that has probably been in your mind for a long time. You have the product sorted out, how you are going to deliver your service, where you are going to set up your office and how you are going to market your new business. But the stumbling block always seems to be the finance to get you going.
Finding the finance to get a small business off the ground is a major issue for any potential small business. Some new businesses lend themselves to very little start up capital because the main selling point is the owner’s skills and knowledge, for example consultants, web designers, PR specialists. Businesses which require stock holding, plant and equipment and other investment, face the real challenge of getting their start up finance together.
So what sources can you tap into to ensure your business gets off to a solid start?
Your Savings
The first port of call! If you have been in employment for some time then before going it alone you should hopefully have some spare cash behind you. Whether this be in the form of cash in a savings account or shares and unit trusts, this is a good start to your fund raising exercise.
You can be more focused in saving cash if you have had the goal of setting up your own business for awhile. Knowing you need to save to get your business off the ground will make sure you don’t spend your future nest egg on unnecessary items. Whilst a new Plasma TV or the latest DVD Recorder may seem to be an essential purchase, knowing that you have a business to set up in the future will be sufficient a deterrent to keep the cheque book firmly locked away!
Keep Your Job
Some business owners are lucky enough that during the early days of the business they can keep the day job while working on the business during the evenings and weekends. This has two benefits. Firstly, they are still earning thereby allowing more time to build up a cash reserve. Secondly, it’s an opportunity to test out the business to make sure there is a market. There are legitimate work at home jobs that can offer you some amount of freedom to pursue your business venture while still offering the security of a steady paycheck too.
Make sure that you can realistically keep both balls in the air at the same time otherwise you will end up doing justice to neither your job or your new business. The support of your family is also essential if you are to follow this strategy. They have to accept that what used to be ‘family time’ may have to take a back seat until you decide to concentrate on the business full time.
Family and Friends
These can be a useful source of finance for any start up. If you have harboured ambitions to run your business for some time, then many of your family and friends are already likely to know about your idea. You should therefore have an indication who is for it and who is against it.
If you haven’t shared your secret desire then it’s time to be slightly devious! If you are in the early planning stages start drip feeding your ideas to key people whom you think are likely to support you. Tell them your ideas, share your ambitions and goals and on a regular basis update them with your progress. The plan is to get them sold on you and your future business at an early stage.
Once you get to the point where you are ready to start asking for contributions hold an Investor Evening. Prepare a presentation outlining your plans, the business, the market etc. Show the potential investors what their return will be in recognition for supporting you.
Invite as many people as you can and promise an interesting and fun evening, Be bold at the very start; tell them exactly why they are there, so there are no misunderstandings. After you have done your presentation gather all the names of the people who may want more information or even a one-to-one with you.
Whilst this group are people who know you and so are more likely to trust you, don’t forget that you are developing a very different relationship which can quickly turn sour. Be prepared for rocky times!
Bank Line of Credit or Loan
Now you’re getting into the serious stuff! Getting support from a Bank for a new business is tough, as many entrepreneurs will testify. One sneaky way is to apply for an unsecured loan while you are still in employment. If you have planned things right you will know when you are starting up, so a few months before you pack your job in, apply for a loan based on your salary. However, make sure that you can comfortably meet the repayments. There is no grace period; you will be expected to pay back immediately, so your business will have to start earning very quickly.
The alternative is a business line of credit facility. There is no fixed repayment date, although they will be for periods from 6 to 12 months, and all you have to do is ensure that you keep within the overdraft limit. You will have to write a business plan to present to the Bank which outlines your idea and the business.
Mortgage or Equity Release
With the way house prices have been increasing over the last few years, the vast majority of people now have substantial equity in their homes. The cheaper alternative to a Bank overdraft or loan is a mortgage. The interest rate is lower and, as the repayments are spread over a longer period, the monthly repayment is less (although you will end up paying more interest in the long run).
The disadvantage of raising cash this way is that your home is potentially at risk. If meeting the monthly repayments is dependent on what the business can generate then a slow start could cause cash problems. So be very sure you can meet the repayments even during a lean period. Incedentally, if your break up has caused you to fall into financial disorder regarding your mortgage, make sure that you start the Loan Modification Process immediately, losing your home is the last thing you want to do right. Likewise, you can also sell your home for cash, if you were planning to move anyway.
Credit Cards
If you haven’t got any savings, can’t get support from family or friends, or a Bank loan or mortgage, then there are your credit cards! However, whilst it’s easy to draw down on your card, be wary! Credit cards are the most expensive form of debt.
They are ideal because all you may have to do is pay the minimum amount but card debt, as most people have found out, can be a long term burden. But, if you need a cash lump sum to kick start the business and you know you can pay it off within a few months, then it’s an alternative source of finance worth considering, if somewhat unorthodox!
Business Grants
Business grants are available for specific industries, sectors and reasons. Grant providers will usually only give a portion of your requirement, so they cannot be used to totally finance a start up. However, they can be useful in filling a funding gap.
Business Angels
A popular way to fund a business are Business Angels. These are people, usually retired or successful business people in their own right, who are looking for opportunities to invest in new businesses.
In exchange for an investment they will typically look for a shareholding in the business and some hands-on involvement. They will have a vast business experience and so are useful people to have on board. However, you will have to accept an element of loss of control but that needs to be balanced against your desire for funding.
Getting finance for your new business can be a challenge but there are a number of avenues to explore and so with dedication and focus you could soon be on your way to launching your own small business.
Finding the finance to get a small business off the ground is a major issue for any potential small business. Some new businesses lend themselves to very little start up capital because the main selling point is the owner’s skills and knowledge, for example consultants, web designers, PR specialists. Businesses which require stock holding, plant and equipment and other investment, face the real challenge of getting their start up finance together.
So what sources can you tap into to ensure your business gets off to a solid start?
Your Savings
The first port of call! If you have been in employment for some time then before going it alone you should hopefully have some spare cash behind you. Whether this be in the form of cash in a savings account or shares and unit trusts, this is a good start to your fund raising exercise.
You can be more focused in saving cash if you have had the goal of setting up your own business for awhile. Knowing you need to save to get your business off the ground will make sure you don’t spend your future nest egg on unnecessary items. Whilst a new Plasma TV or the latest DVD Recorder may seem to be an essential purchase, knowing that you have a business to set up in the future will be sufficient a deterrent to keep the cheque book firmly locked away!
Keep Your Job
Some business owners are lucky enough that during the early days of the business they can keep the day job while working on the business during the evenings and weekends. This has two benefits. Firstly, they are still earning thereby allowing more time to build up a cash reserve. Secondly, it’s an opportunity to test out the business to make sure there is a market. There are legitimate work at home jobs that can offer you some amount of freedom to pursue your business venture while still offering the security of a steady paycheck too.
Make sure that you can realistically keep both balls in the air at the same time otherwise you will end up doing justice to neither your job or your new business. The support of your family is also essential if you are to follow this strategy. They have to accept that what used to be ‘family time’ may have to take a back seat until you decide to concentrate on the business full time.
Family and Friends
These can be a useful source of finance for any start up. If you have harboured ambitions to run your business for some time, then many of your family and friends are already likely to know about your idea. You should therefore have an indication who is for it and who is against it.
If you haven’t shared your secret desire then it’s time to be slightly devious! If you are in the early planning stages start drip feeding your ideas to key people whom you think are likely to support you. Tell them your ideas, share your ambitions and goals and on a regular basis update them with your progress. The plan is to get them sold on you and your future business at an early stage.
Once you get to the point where you are ready to start asking for contributions hold an Investor Evening. Prepare a presentation outlining your plans, the business, the market etc. Show the potential investors what their return will be in recognition for supporting you.
Invite as many people as you can and promise an interesting and fun evening, Be bold at the very start; tell them exactly why they are there, so there are no misunderstandings. After you have done your presentation gather all the names of the people who may want more information or even a one-to-one with you.
Whilst this group are people who know you and so are more likely to trust you, don’t forget that you are developing a very different relationship which can quickly turn sour. Be prepared for rocky times!
Bank Line of Credit or Loan
Now you’re getting into the serious stuff! Getting support from a Bank for a new business is tough, as many entrepreneurs will testify. One sneaky way is to apply for an unsecured loan while you are still in employment. If you have planned things right you will know when you are starting up, so a few months before you pack your job in, apply for a loan based on your salary. However, make sure that you can comfortably meet the repayments. There is no grace period; you will be expected to pay back immediately, so your business will have to start earning very quickly.
The alternative is a business line of credit facility. There is no fixed repayment date, although they will be for periods from 6 to 12 months, and all you have to do is ensure that you keep within the overdraft limit. You will have to write a business plan to present to the Bank which outlines your idea and the business.
Mortgage or Equity Release
With the way house prices have been increasing over the last few years, the vast majority of people now have substantial equity in their homes. The cheaper alternative to a Bank overdraft or loan is a mortgage. The interest rate is lower and, as the repayments are spread over a longer period, the monthly repayment is less (although you will end up paying more interest in the long run).
The disadvantage of raising cash this way is that your home is potentially at risk. If meeting the monthly repayments is dependent on what the business can generate then a slow start could cause cash problems. So be very sure you can meet the repayments even during a lean period. Incedentally, if your break up has caused you to fall into financial disorder regarding your mortgage, make sure that you start the Loan Modification Process immediately, losing your home is the last thing you want to do right. Likewise, you can also sell your home for cash, if you were planning to move anyway.
Credit Cards
If you haven’t got any savings, can’t get support from family or friends, or a Bank loan or mortgage, then there are your credit cards! However, whilst it’s easy to draw down on your card, be wary! Credit cards are the most expensive form of debt.
They are ideal because all you may have to do is pay the minimum amount but card debt, as most people have found out, can be a long term burden. But, if you need a cash lump sum to kick start the business and you know you can pay it off within a few months, then it’s an alternative source of finance worth considering, if somewhat unorthodox!
Business Grants
Business grants are available for specific industries, sectors and reasons. Grant providers will usually only give a portion of your requirement, so they cannot be used to totally finance a start up. However, they can be useful in filling a funding gap.
Business Angels
A popular way to fund a business are Business Angels. These are people, usually retired or successful business people in their own right, who are looking for opportunities to invest in new businesses.
In exchange for an investment they will typically look for a shareholding in the business and some hands-on involvement. They will have a vast business experience and so are useful people to have on board. However, you will have to accept an element of loss of control but that needs to be balanced against your desire for funding.
Getting finance for your new business can be a challenge but there are a number of avenues to explore and so with dedication and focus you could soon be on your way to launching your own small business.
Financial Help For Single Mom's- A Small Business Can Help A Lot
Small business is a term that is used day-to-day. That is because in the past decade the rise of small business has been larger than in any other decade prior. This is largely due to the increasing number of services that are available to small business owners, to enable them to keep their business running.
There really isn't any guidelines for when the term small business is used, however it is simply defined as a business which has a small number of employees. How few employees is debatable, and the definition of when a business changes from a small business to a larger corporation varies both by country and industry. This number is generally less then 100 employees.
As mentioned before small businesses due to their nature, are in most times sole proprietorships, partnerships, or privately owned. Common in may countries, small businesses, are most oftenly related to: accountants, restaurants, guest houses, photographers, small shops, hairdressers, tradesmen, solicitors, lawyers, small-scale manufacturing etc.
Small businesses in often cases are located in private homes, for two main reasons. The first is because it is economical and in most cases convenient. The second reason is that there are several benifits with tax,etc for having your business in your home.
Running a small business is an exciting venture, and a great way to introduce yourself into the business world, and to gain business sense. If you are interested in starting your own small business, I would recommend having a talk with a local lawyer or accountant, who will be able to answer questions that are specific to your local area. Good luck with your new venture!
There really isn't any guidelines for when the term small business is used, however it is simply defined as a business which has a small number of employees. How few employees is debatable, and the definition of when a business changes from a small business to a larger corporation varies both by country and industry. This number is generally less then 100 employees.
As mentioned before small businesses due to their nature, are in most times sole proprietorships, partnerships, or privately owned. Common in may countries, small businesses, are most oftenly related to: accountants, restaurants, guest houses, photographers, small shops, hairdressers, tradesmen, solicitors, lawyers, small-scale manufacturing etc.
Small businesses in often cases are located in private homes, for two main reasons. The first is because it is economical and in most cases convenient. The second reason is that there are several benifits with tax,etc for having your business in your home.
Running a small business is an exciting venture, and a great way to introduce yourself into the business world, and to gain business sense. If you are interested in starting your own small business, I would recommend having a talk with a local lawyer or accountant, who will be able to answer questions that are specific to your local area. Good luck with your new venture!
Playing And Winning The Grant Game.
Depending on what kind of business you’re planning to start, you might be able to get a home business grant. These grants are usually government-issued. They are, effectively, ‘free money’ – as long as you use the money for what you say you’re going to use it for, you don’t ever have to pay it back. Even if you don’t think you would qualify for anything, you might be able to modify your business plan subtly so that you do.
Why Would They Do That?
The money is designed to encourage specific kinds of businesses – it will always be given to you for a very specific purpose. Also, grants almost never cover the full amount of whatever it is you want to do, leaving you to make up the rest yourself. Note that not all grants come from the government -- some are given out by charities trying to further a cause, or by local community organisations.
Areas commonly covered by grants include businesses that are exporting (every government wants exports to be more than imports), businesses that will provide training to their employees, businesses that are doing useful research and businesses that are providing services and jobs in places that are candidates for 'regeneration'. You may also be able to find extra support for environmentally-friendly businesses, and if you're a woman or a member of an ethnic minority then that could qualify you for a grant too.
Training Grants.
Grants for training are some of the best ones out there -- if you're planning to have any staff, you should really look into them. Basically, you get a grant towards the cost of sending some of your employees on a training course. This is good for you, as you can train your employees more cheaply, and they'll do a better job afterwards. It's good for them, as they learn new skills or improve the ones they have and improve their career prospects for the future. Finally, at least in theory, it's good for the economy, as there will be a greater diversity of skills available in the job market.
Research Grants.
If your business is trying to solve a problem or develop an invention, you might be eligible for a research grant. This can be especially helpful for covering the costs of things like patent applications. Watch out, though -- application for research grants is some of the fiercest out there.
Location, Location, Location.
Whatever kind of grant you're going for, the biggest factor in whether you get it will probably be where you're based. Grants tend to be locally-focused, and especially targeted in areas that are deemed to have a lacking economy. Since you're a home business, you might even find it worth researching what is available in each area, and moving home strategically.
It's Hard to Get a Grant.
Beware of anyone who makes grants look easy. There are all sorts of ‘grant agencies’ who want to take a fee, and ‘guarantee’ that they’ll get you a grant. They won’t – as with almost all things like this, never pay up front. However tempting their offer might seem, you should be applying for the grants yourself. This will generally involve submitting your business plan plus a letter of about 1,000 words saying why you should get the grant in question -- you can't really use the same letter for each grant. Pick what you apply for carefully, as it's a waste of time to apply when you don't meet the criteria properly.
If you want to make sure you're applying correctly, the best thing to do is to phone up the organisation offering the grant -- they'll usually be eager to offer help and advice. Still, don't be upset if you don't get chosen, as it might just be that there were more qualifying candidates than there was money.
Other Benefits.
Any grant you get is likely to bring you to the attention of some kind of agency or organisation who want to help you in other ways too. They might help you get onto courses if you're lacking any business skills, or even provide a mentor to guide you. You might think it all sounds a little silly, but believe me, when you run a home business you need all the help you can get.
Why Would They Do That?
The money is designed to encourage specific kinds of businesses – it will always be given to you for a very specific purpose. Also, grants almost never cover the full amount of whatever it is you want to do, leaving you to make up the rest yourself. Note that not all grants come from the government -- some are given out by charities trying to further a cause, or by local community organisations.
Areas commonly covered by grants include businesses that are exporting (every government wants exports to be more than imports), businesses that will provide training to their employees, businesses that are doing useful research and businesses that are providing services and jobs in places that are candidates for 'regeneration'. You may also be able to find extra support for environmentally-friendly businesses, and if you're a woman or a member of an ethnic minority then that could qualify you for a grant too.
Training Grants.
Grants for training are some of the best ones out there -- if you're planning to have any staff, you should really look into them. Basically, you get a grant towards the cost of sending some of your employees on a training course. This is good for you, as you can train your employees more cheaply, and they'll do a better job afterwards. It's good for them, as they learn new skills or improve the ones they have and improve their career prospects for the future. Finally, at least in theory, it's good for the economy, as there will be a greater diversity of skills available in the job market.
Research Grants.
If your business is trying to solve a problem or develop an invention, you might be eligible for a research grant. This can be especially helpful for covering the costs of things like patent applications. Watch out, though -- application for research grants is some of the fiercest out there.
Location, Location, Location.
Whatever kind of grant you're going for, the biggest factor in whether you get it will probably be where you're based. Grants tend to be locally-focused, and especially targeted in areas that are deemed to have a lacking economy. Since you're a home business, you might even find it worth researching what is available in each area, and moving home strategically.
It's Hard to Get a Grant.
Beware of anyone who makes grants look easy. There are all sorts of ‘grant agencies’ who want to take a fee, and ‘guarantee’ that they’ll get you a grant. They won’t – as with almost all things like this, never pay up front. However tempting their offer might seem, you should be applying for the grants yourself. This will generally involve submitting your business plan plus a letter of about 1,000 words saying why you should get the grant in question -- you can't really use the same letter for each grant. Pick what you apply for carefully, as it's a waste of time to apply when you don't meet the criteria properly.
If you want to make sure you're applying correctly, the best thing to do is to phone up the organisation offering the grant -- they'll usually be eager to offer help and advice. Still, don't be upset if you don't get chosen, as it might just be that there were more qualifying candidates than there was money.
Other Benefits.
Any grant you get is likely to bring you to the attention of some kind of agency or organisation who want to help you in other ways too. They might help you get onto courses if you're lacking any business skills, or even provide a mentor to guide you. You might think it all sounds a little silly, but believe me, when you run a home business you need all the help you can get.
How to Find Free Government Grant Money
Finding free government grant money can be time and labor intensive. Identifying the specific agencies and their purposes and specific subject areas can involve a lot of research work. Ads that claim the process is easy usually involve some sort of fraud and are untruthful. Government grant money will need to be answered for very specifically in today's world.
Free government grant money does actually come with at a price. It does not have to be repaid, but it does come with strict conditions and restrictions on how it is spent. There are usually strong sanctions involved when used improperly as it is to be used directly for the outlined project and within the objectives of the funding source.
Locating free government grant money for new and existing for-profit businesses is difficult. Typically, the free grant money is given to non-profit organizations that provide some sort of community social service function and benefit everyone. Despite this, it should be noted that there is still free grant money available from the government to entrepreneurs in competitive fields of business.
The U.S. government's grant.gov website would be the best place to look to find available free grant money. Here, you will be able to find and apply for competitive grant opportunities from all federal granting agencies online. The application and approval process is automated to improve the process. The site also offers a free sign up for notification of future grant opportunities.
The government's Catalogue of Federal Domestic Assistance (CFDA) is another source to find free available grant money. The CFDA.gov website lists government grants and assistance for homeowners, renters and even small business start-ups. Grant information is available by category, topic and key words. Eligibility requirements are listed for all grants to determine if you qualify for them.
Keep in mind while searching for free government grant money that it is not available in any specific area year-round. You must apply when advertised and meet a deadline if you want a chance to qualify for it.
Free government grant money does actually come with at a price. It does not have to be repaid, but it does come with strict conditions and restrictions on how it is spent. There are usually strong sanctions involved when used improperly as it is to be used directly for the outlined project and within the objectives of the funding source.
Locating free government grant money for new and existing for-profit businesses is difficult. Typically, the free grant money is given to non-profit organizations that provide some sort of community social service function and benefit everyone. Despite this, it should be noted that there is still free grant money available from the government to entrepreneurs in competitive fields of business.
The U.S. government's grant.gov website would be the best place to look to find available free grant money. Here, you will be able to find and apply for competitive grant opportunities from all federal granting agencies online. The application and approval process is automated to improve the process. The site also offers a free sign up for notification of future grant opportunities.
The government's Catalogue of Federal Domestic Assistance (CFDA) is another source to find free available grant money. The CFDA.gov website lists government grants and assistance for homeowners, renters and even small business start-ups. Grant information is available by category, topic and key words. Eligibility requirements are listed for all grants to determine if you qualify for them.
Keep in mind while searching for free government grant money that it is not available in any specific area year-round. You must apply when advertised and meet a deadline if you want a chance to qualify for it.
Alternative Venture Finance: Federal Grants and Loans
While most companies seeking venture capital initially think about angel investors and venture capitalists, a large alternative source of financing is federal grants and loans. The two largest federal grant programs are run by the Small Business Administration (SBA), and by Small Business Investment Companies (SBICs).
An SBA loan, regardless of whether it is a direct loan from the SBA, or, as is more common, a bank loan guaranteed by the SBA, is essentially a bank loan. The benefit of it versus a traditional bank loan is the rate. SBA rates are typically much less than traditional business loan rates.
In most cases, in a guaranteed SBA bank loan, the SBA guarantees 90 percent of the loan will be repaid to the bank. As such, banks are at much less risk than in most other loans, and are a bit more flexible with regards to who they offer these loans. However, the SBA usually requires the founders of the company to personally guarantee the loans, which makes them risky should the venture collapse.
Alternatively, Small Business Investment Companies (SBICs) are privately organized corporations that are licensed and regulated by the SBA. Small or emerging businesses which qualify for assistance from the SBIC program can receive equity capital and/or long-term loans from these companies. Essentially, these companies provide their own capital, which is supplemented by federal funds, to the companies they fund.
Interestingly, U.S. taxpayers benefits from the SBIC program as tax revenues generated from successful SBIC investments have more than covered the cost of the program. Likewise the program has created hundreds of thousands of jobs.
In summary, SBA and SBIC financing are viable alternatives to financing from angel investors and venture capitalists and should be considered in the capital raising process. Similarly to angel and VC financing, companies seeking SBA and SBIC financing need a strong management team and value proposition, and a highly professional and compelling business plan in order to raise the capital they need.
An SBA loan, regardless of whether it is a direct loan from the SBA, or, as is more common, a bank loan guaranteed by the SBA, is essentially a bank loan. The benefit of it versus a traditional bank loan is the rate. SBA rates are typically much less than traditional business loan rates.
In most cases, in a guaranteed SBA bank loan, the SBA guarantees 90 percent of the loan will be repaid to the bank. As such, banks are at much less risk than in most other loans, and are a bit more flexible with regards to who they offer these loans. However, the SBA usually requires the founders of the company to personally guarantee the loans, which makes them risky should the venture collapse.
Alternatively, Small Business Investment Companies (SBICs) are privately organized corporations that are licensed and regulated by the SBA. Small or emerging businesses which qualify for assistance from the SBIC program can receive equity capital and/or long-term loans from these companies. Essentially, these companies provide their own capital, which is supplemented by federal funds, to the companies they fund.
Interestingly, U.S. taxpayers benefits from the SBIC program as tax revenues generated from successful SBIC investments have more than covered the cost of the program. Likewise the program has created hundreds of thousands of jobs.
In summary, SBA and SBIC financing are viable alternatives to financing from angel investors and venture capitalists and should be considered in the capital raising process. Similarly to angel and VC financing, companies seeking SBA and SBIC financing need a strong management team and value proposition, and a highly professional and compelling business plan in order to raise the capital they need.
Subscribe to:
Posts (Atom)