How To Get Grants For New Businesses

Starting out with a new business, being your own boss, and deciding how the company is run it can all be very exhilarating. Till the time the question of funds crop up. While loans and venture capital are still the most popular ways of funding a new business, you can also consider applying for grants.

What is a Business Grant?

A business grant is provided to a business or a proposed business after it fulfills certain criteria. It works very much like a commercial loan, except for the fact that you need not repay a business grant. Because the business grant does not burden you with issues like repayment and interest, the competition for these grants is fierce. They are harder to get than loans, and take longer to sanction, since a committee scrutinizes your application first.

Who Offer Business Grants?

Private organizations, business groups and government institutions provide business grants. In the US, though the federal government does not provide direct grants for small businesses, state government and many private organizations help out new businesses by providing grants.

Who is Eligible to Receive Business Grants?

For small business grants, almost all kinds of privately run businesses with less than 30 employees qualify. Whether you run a day care center, photocopying business, or retail from home, you can apply for a small business grant. The only eligibility criteria are that you must be above 18 years of age and a US citizen or resident. You need to submit a well-written business proposal in order to get a grant sanctioned, since you have to convince the grants committee about the feasibility of your business.

How Much Is The Grant Amount?

Typically, a business grant for new businesses, especially small businesses, can fall anywhere from $500 to $50,000. If you are starting a new business, you can get more.

How to Write a Business Proposal:

A business proposal is crucial if you want to avail the benefits of a grant. A business proposal details how to plan to run, organize and get fund for your business. You need to mention how much money you will need, how much you hope to earn through your business, what kind of business model you will follow, how many people you will employ, insurance policy, business failure planning and other information. If you have no prior experience in running a business, then you may want to consult a small business advisor while drafting a business proposal.

Entrepreneurship is vital to the economy of any nation, which is why governments and private institutions provide grants to dedicated people who want to make a success of their new business. If you are keen on making your new business a hit, then there should be no problems in getting your grant application approved. In order to locate a suitable grant, and for drafting a business plan, you may need to consider a small business expert who can guide you.

Role Of Business Brokers In Selling A Business

Role of business brokers in selling a business is more important than buying a business. However, there are people who do not understand the importance of the role of business brokers when they decide to sell their business. Irony is that some people are happy with giving more time to the selection of a coffee machine rather than to choosing the right business broker. This is a big mistake on their part and can result in not only the loss of money and time but also sometimes resulting in inability to find any buyers.

Here are some points to consider when you choose the business broker for selling your business. However, it is not possible to get a broker who has all the qualifications yet you must look for experience, knowledge, reliability and compatibility with you.

Reliability:
Reliability is essential because the role of business broker in selling a business is very important. How can you judge whether a particular business is reliable or not? The best method is to contact the references given by the business broker. They are in the best position to tell about how the business broker performed the deal. Ask them whether they are satisfied with the role of business broker or not. Also, make sure that the business broker you are going to hire has the capability of taking the transaction to the end and can follow up.

These references can also give you indications regarding the price they got for selling their business. Could they get the price they were expecting? Also, ask them about the consistency of the business broker with the plan charted out in beginning. They can also tell about the level of knowledge the broker has and his capability of providing the right advice. One very important question that you can ask is if need be would they like to hire the same broker again or not. The answer to this question can help you in taking decision quickly regarding hiring the business broker for selling the business.

If the business broker you are going to hire for selling the business belongs to the association of brokers then this is a point in his favor adding to his reliability. This is because the Associations such as International Business Brokers Association apply very strict ethical rules. Similarly, you can gauge the level of the knowledge by asking some questions. The business broker should not only have completed formal education to perform his job perfectly, but also need to keep himself informed about the changes in the particular industry.

Finally, a tip regarding experience of the business broker you are going to hire. If the business broker has ever owned a business then he is a better choice than the others who never run any business.

Role of Business Broker in Buying a Business

Role of business brokers in buying a business is very important. In fact, buying a business is more popularly called buying process. This entails that buying a business requires several steps to be performed, particularly if this is your first experience of this kind. Buying a business is not a small decision and you cannot take it lightly. Educating and preparing yourself for this process is very essential as you are putting a big amount of money at stake.

Only 10 % of People Complete the Process:
Importance of the role of business broker in buying a business further increases with the fact that 90 % of the people who start their search for buying a business give up without making the final deal. The biggest reason seems to be that people do not understand in advance that this process is so much involving. Most of these people who leave the task without completing it are the first time buyers. Frustration because of making one after one crucial decisions force them to abandon the project.

Hiring a professional Business Broker is always Useful:
Buying a business is a rare opportunity for the most of the people in their lives. It is always useful to hire the services of an experienced and professional business broker who can help you to go through the overall process of buying a business smoothly. Here are some examples of how a business broker can help you.

A business broker with his experience of the industry is right person to tell you that how much amount of money you can afford for this purpose. By having a proper understanding of your financial goals he can guide you that which type of business will be best suitable for you. Moreover, a business broker is the best person to guide you about the geographical location. He can provide you the names of the businesses that are available for sale in addition to gathering the and also evaluating the information regarding these businesses. Role of the business broker in buying a business is not only limited up to all this. He can structure the offer for purchase, manage finances for you and can close the deal.

Most of the business brokers prefer talking personally to the people. So in the very first meeting with your business broker, let him know what is the period you have set for completing the deal. Also tell him about your expectations from the business in question. Tell him clearly about the availability of the finds and how much cash is readily available. Role of a business broker does not end here. It can also help you in managing the finance from third party if need be.