Whether you’re planning to start your own business or you’re having trouble financing your startup, free money always helps. It can kick start your venture and give it that push which every entrepreneur needs. No matter which stage your business is in, if you don’t have any investors by your side then it can become a struggle. To add to the misery, you run a risk of going bankrupt. All successful businesses go through this dilemma. Either they get an investor and lose their control on the business or drown in debt.
Luckily, you won’t have to give up on your dream or empty your pockets. Let us guide you to your free money. So check below to find out how to get free government money for your business.
Also, check out: Making a Business More Efficient Through Lean Production
How to Get Free Government Money for Small Businesses
Find the Correct Grant Program
Grants are basically funds that are allocated by the government or various other entities to help out businesses. It doesn’t come with any conditions. So, you get to use that government money in any way you prefer as long as you’re using it for your business. Plus, you won’t have to repay it.
People often get confused between grants and loans, but there’s a huge difference between the two. When you take a loan from a bank, you have to pay the money back with interest within the allocated timeframe. But grants provide you with quite literally free money.
“What’s the catch?”
There are no real pullbacks when it comes to grants, but you should know about certain conditions before searching and put in the application for every grant you can find.
- Firstly, you have to search thoroughly for a grant that suits your business. A lot of the grants have existing pre-conditions which can be harmful for your business. You need to meet certain requirements to get the grant. Just do your research properly and be confident.
- Secondly, after receiving the grant you just can’t spend it on anything and everything. Many grants won’t allow you to spend the money on social media marketing or any other marketing strategies. You’ll have to use it for research and in the development of your product (R&D).
Apply for the Right Grants
Finding the correct grant for your business is only half the job. Grants can be difficult to find at times, if you don’t know where to look for. There’s also the added risk of getting scammed.
Here are some of the credible options:
- Grants.gov. is arguably the most reliable source available. But it can be a confusing task to find the right grant for your venture if you don’t have proper knowledge regarding grants. By just clicking on the grants database, you’ll get an in-depth idea. The website mostly provides grants for businesses that are related to science, health and tech. Even if you don’t fall under the criteria don’t hesitate to reach out to them and get more info.
- SBIR is also known as Small Business Innovation Research program is a well-known grant in the tech startup industry as it is designed for such businesses. The SBIR invests in businesses that use technology in the research and development (R&D) of their products.
- The federal and state government also allocates grants to startups that are local community based, but these grants are tough to attain because of bureaucracy. These grants are no less than hidden treasures. So, if you have the acumen, your business will thrive within no time.
- Coronavirus Small Business Grants: The U.S. Small Business Administration and various large corporations are providing coronavirus affected small-businesses with loans and grants that fulfill their requirement.
Work with the Government
The U.S government often reaches out to businesses that are having a positive impact on society and providing employment to the local community. This is done through contracts. So, grants aren’t the only viable solution you have for your money problems.
The Small Business Administration, more famously known as SBA, has listings of multiple government contract opportunities. Sometimes the requirements are harsh. But more often than not, your business will be eligible. There are also joint-venture contracts that are targeted towards collaborating with two or more businesses. This lets you broaden the target market of your product.
If you feel you’ll business will thrive under the government’s supervision then consider registering your business to any of the reliable government databases. This will allow you to stay in the loop. So, whenever a contract is offered, you’re one of the first few people to get notified. We also suggest getting in touch with the local clerk’s office to know more about such opportunities.
Pay Your Debt
Learning how to get free government money sounds amazing and it’s even more mouth-watering if you’re in a lot of debt. Most businesses when starting off, take loans from banks and loan-sharks. Eventually, the debt catches up to you and there’s nothing you can do but give up on your business.
If you’re going through a similar situation then reach out to your local government. Chances are they will offer you their help. Try talking to experts in your industry and start applying for grants. Once you get out of debt, your business will become profitable in no time. You just need to implement the right strategies.
Learning how to fund your business using the government’s money can be extremely effective for local businesses. As these businesses have the potential to provide employment to local communities. But funding your business from ground zero to the very top is almost impossible to do on your own, unless you’re sitting on a pile of cash.
The government aid will act as the base structure from where you can launch your business. With the help of grants and contracts, you can solve all your money problems and become a profitable business owner. Consider these methods so you don’t have nightmares about trees that grow money.
Don’t forget: How to Get Small Business Grants?