If You Think Getting Free Small Business Grant Money Is Easy, You Better Read This

by Herb Wills

These days, the old saying "It takes money to make money" has never been more true. Whether it's 50 bucks or $50 million, your new trigger-up will cost you something. But how can you tell what kind of funding is vital and how measurably of it you will need? Here are the most frequently traveled paths to a bunch of different pots of gold. (1) Family and friends. (2) Bank Loans. (3) SBA loans. (4) Venture capital. (5) Angel funding. Note that grants are not one of the five most frequently mentioned options. Very few businesses are entirely funded by parties other than the entrepreneur. According to an article in Wall Street Journal's Startup Journal, about half of all small businesses finance their formation or expansion with credit cards, according to a survey by the National Small Business Association and Arthur Andersen.

There are very few grants available for starting or expanding a business unless the business involves research and development or high technology. Hundreds of grants have caveats, such as:

1. They are available only for a specific group of people. Mainly: Research and development for high technology, biotechnology, military products and energy related products, and grants for people who will locate their business in a poor area and employ the people who live there.
2. Government grants can be applied for only when they are announced in the Federal Register, or only during a small window of time once a year.
3. You often have to furnish a personal guarantee (putting your house on the line) and/or take on responsibility for raising 10-30% of the finances from your own sources (e.g. savings, loans from relatives).
4. You can explore the SBA's list of Federal Grant Resources, but you'll soon realize that most grants are not available for the typical business.
5. You often have to report on your use of the money, or follow particular rules.

Be organized. You'll need a good business plan and the accurate numbers to show that what your're proposing should work. Especially in the realm of government grants, be prepared with numbers relating to cost of insurance, other funding sources you have or are seeking, and ways in which what you propose will meet Uncle Sam's goals.

FedBizOpps.gov is the single government point-of-entry (GPE) for Federal government procurement opportunities over $25,000. Government buyers are able to publicize their business opportunities by posting information directly to FedBizOpps via the Internet. Through one portal - FedBizOpps (FBO) - commercial vendors seeking Federal markets for their products and services can search, monitor and retrieve opportunities solicited by the entire Federal contracting community.
The default speed for borrowing from friends-and-family is 14%, says Asheesh Advani, owner of CircleLending, which manages private loans; he is also author of "Investors in Your Backyard" from the Nolo do-it-yourself book series.

If you are searching for money to start a new business here are some suggestions.

Current Government Small Business Grant offerings:
03/05/2007 Minority Business Enterprise Center (Ohio and New York) Department of Commerce 1180002052007
08/18/2006 Micro and Small Enterprise Trade-Led Growth Program Peru USAID-Lima USAID-BRAZIL-EG-06-001-RFA
02/01/2007 Small Business Innovation Research CSREES USDA-CSREES-SBIR-000100
2/15/2006 Outreach and Assistance for Socially Disadvantaged Farmers and Ranchers Competitive Grants Program CSREES USDA-CSREES-ICGP-000261

Be aware! Finding the Grant Source is only the first stage. Be sure and get experienced help. Writing the grant application proposal will be the most essential thing that you do. Successful grant writing involves the coordination of several activities, including planning, searching for data and resources, writing and packaging a proposal, submitting a proposal to a funder, and follow-up. Good Grant Writing Software will be an vital tool in your quest for your Minority Grant.

Small Business: What Are Your Options For Start Up Capital

by Deanna Mascle

You have to spend a buck to make a buck, and starting a company proves that rule. Often, people looking to open a business need to invest in some start-up equipment or consumables and those items can be costly. The long term shows promise, but having a solid foundation to open your business is important. So just what are the options for finding enough funds to get your company off the ground?

Your first and easiest source of start-up funding may logically be your friends and family. They know you, your dreams, goals and ideas, and they know how motivated you are to carry out the plans that you've surely told them about already. However, entering into a business relationship with friends and family isn't always a good idea. These people won't be able to be objective about their contribution and may only be providing you money based on personal feelings. Money and emotions should never mix. In addition, finding other sources of investors that are experts in the field may prove to be more useful, as these individuals can provide you with advice and counsel for your business.

Before accepting money, be sure to have a frank discussion on what will happen if the business fails. Be sure that you have a backup plan for repaying loans. Friends often say, "Don't worry about it; pay me back when you can." In reality, if your company fails, your friendships could be damaged by your inability to pay. Finally, if you do accept loans or donations from friends and relatives, be sure to document them as if they were from strangers. Should you later decide to seek venture capital or bank loans, those officials will want to see a paper trail.

Private investors are another option. Venture capital operations tend to deal with more established companies, but "angels" are often willing to take a chance on a brand new startup. However, an angel is not a smiling benefactor waiting to rain down money as a gift. Angels are shrewd investors who expect a solid return on their investment. A well-crafted business plan and excellent negotiating skills are absolutely required to secure funding from an angel.

Bank loans are another possibility. However, banks absolutely demand a solid paperwork trail. They are generally reluctant to invest in brand new businesses unless they are backed by impeccable personal credit. Even then, you must be prepared to demonstrate hard numbers as opposed to projections. Signed contracts from customers, a lot of collateral, and a willingness to forgo your own salary can all help to convince a bank.

Do not overlook creative means of financing your new venture. In many cases, you can start operations on a shoestring, and gradually build your company by re-investing your profits. This works best for companies that require little or no inventory and are, at least initially, run from a home office rather than a storefront. You may be able to tap into your retirement fund for startup capital. Credit cards are an option, but should be used sparingly. Talk with the Small Business Administration about their financing programs. Matthew Lesko's "Free Money" books offer a compilation of funding sources ranging from the common to the obscure. With a 90 day money back guarantee, the books are definitely worth a look.

Raising start up capital can be difficult. However, by looking creatively at the problem, writing a sound business plan, and considering every available source of funding, it is possible to find the money for almost any new business venture. Patience and a sense of humor are invaluable.

Small Businesses Are Held Liable In ID Theft Cases

by Antwoine Harris

Employers Have Liability In ID Theft Cases

If you put 100 people in a room and ask “Have you or do you know of anyone that has been a victim of identity theft?” Probably 90 to 100% of the room will raise their hands. This crime consumes an annual total of 10 million individuals. The cost of businesses and consumers range in the billions of dollars.

Let’s look at the cost of a traditional business if one of their employees becomes a victim. The average time spent by a victim to clear up this situation is 600 hours. How much of this time is spent during work hours? Unfortunately credit card companies and credit repositories are not open 24 hours a day. So victims are forced to take time off from work or try to spend all of their free time at work making telephone calls and worrying. This also makes employees very unproductive, which also can be a major cost to the company.

Laws to protect consumers

In order to slow down this epidemic, laws have been passed to protect consumers. These laws govern the protection of employees’ personal information in the workplace. We have all heard of the HIPAA Laws which regulates the use of medical information because we have to sign a statement at our private doctor and local hospitals. What about the F.A.C.T.A Law or the Gramm-Leach-Bliley Law? These are similar laws for other businesses which carries major fines as well as jail time for business owners and corporate executives if personal information is compromised?

These laws adhere to all companies even if you only employ one person. A small business owner can be devastated if they ever experience a computer breach or have a dishonest insider that jeopardizes personal information. Recently a Radio Shack in Texas was caught breaking these laws by dumping customer information into a dumpster. This usually happens when employees are not properly trained on the dangers of identity theft.

This is just one of many companies that have exposed the identities of consumers through employee mistakes, dishonest insiders and computer breaches . Millions of consumer and employees identities have been exposed in the last few years. Some companies such as BJ’s Wholesale and Choice Point have received huge fines for these breaches.

What should employers do?

Employers have to understand that this crime is becoming an epidemic and criminals are becoming smarter. The best thing for a small business owner to do is learn about these laws and get in compliance. The Federal Trade Commission has published a book titled Protecting Personal Information A Guide For Your Business. This book explains the steps to take to get in compliance with these laws.

There are other companies that will assist small businesses with protecting the person information of their employees. Companies, such as Pre Paid Legal Services Inc., have trained associates that come in and train your employees as well as help with your written plans and appointment of a security personnel. These Independent Associates do this for businesses at no cost to the employer.

Be proactive with the fight of this crime. Employees will be grateful knowing that their employer cares about the well being of their families. The small business will also show a “Good Faith Act” toward protecting the personal information of employees and customers. It is a win/ win for everyone.

Small businesses are in need of effective marketing and advertising.

by Kathy Mcgoldrick

90% of businesses in America do not have the savvy to survive and thrive on the internet. Evidence indicates that there are more than 11 million searches by small and medium businesses on the internet for marketing, advertising and promotion assistance. There are twenty-five million businesses that need advertising and marketing.

What if there was a system that would revolutionize the way these small businesses could attract more customers using the internet? What if the system and training was offered by one of the leading experts in online marketing?

Finally there is a solution to the problem for these small businesses. There is a program called Promo Black Box that provides highly advanced advertising and marketing software and executive training at “average Joe” affordability.

The main components are live webinars and site conversion tools. Some of the features include, pay per click advertising, web design, where to get free advertising, correct use of key words and much more. The site conversion tools are downloadable software that will adapt the verbiage of the web page to each customer’s keyword search. The auto-responder is becoming a more popular feature for communication with prospects and clients and article submissions are a great way to create publicity for any business or product.

There are many ways in which the internet can be utilized for building a business and when done correctly the potential for a small business to gain global impact is an exciting idea. Promo Black Box is a tool that small businesses can take advantage of in order to expand to new heights.