The process of raising capital funds to start up a business can really seem frustrating at times. You want to get the funds as quickly as possible, and not get slowed down along the way. This is sometimes not the way it happens. So, how can you find ways to get your funding without having to stress out too much?
Take a look at Small Business Innovation Research Grants, or SBIR grants. These are government grants that can be used when starting up a new business. The government has priorities set in place for these research funds. Companies that are a good match for these research areas may be able to receive the grants to help them with their business.
The SBIR program is great because it provides money that does not have to be paid back later on down the road. It is meant for businesses that are innovative and for-profit. Business owners can get the funding without having to worry about diluting their business equity. This is really a lot better than other loans out there because there is really not an obligation to pay it back, unless the development work is not done on time and within the set budget.
SBIR funds are usually given out in phases. There are two particular phases. The first phase gives money, up to $100,000, for businesses to first test the feasibility of the idea that they have. This is really great for those entrepreneurs that are pursuing a business that they are really unsure about.
If recipients of Phase 1 money are successful, they can get money from the second phase at times. This is money up to $500,000 that can be used to actually bring their products or services into the market. If technologies help to improve the general public, then you may get your money faster than you would otherwise.
The SBIR program admins are usually supported by technical advisors. These advisors know a whole lot about technical areas, and they will want to make sure that you have done your research ahead of time. They evaluate the likelihood of your business becoming successful before they grant you the money that you apply for. With this in mind, you will want to make sure that you have a strong business plan in place.
If you want to improve your chances of getting these government grants, you will want to make sure that you look into the program and learn the ins and outs so that you seem knowledgeable. You might want to consider researching other companies that have made use of these grants. You should talk to the companies and see how they can assist you in your preparation for applying for these grants.
Another great benefit of the SBIR program is the fact that you are able to get extra capital which can help you have a better appeal to lenders and other investors when it comes time to get even more money for your entrepreneurial dreams.