Your Questions About Business Online Services Group

Jere answers:

You stand a better chance of getting grants if you are planning to start a non-profit business.

It is hard to find grants to start a business. Unlike the myths that some perpetuate, federal government and even private foundations hardly give grant money for a for-profit business. And yes, grants mean PAPERWORK – lots and lots of it, that is why a cottage industry of grant writers was born.

Nonetheless, you can go to the Catalog of Federal Domestic Assistance (CFDA) http://www.cfda.gov and Grants.gov http://www.grants.gov – these are two sites created by the federal government to provide transparency and information on grants. Browse through the listings and see if you can find any grant that would support a for-profit venture.

Even if you buy books on “how to get grants” or list that supposedly has information on grants — all of them are mere rehash of what CFDA has, albeit packaged differently. But still the info is the same – hardly any grants for starting a for profit business.

Even SBA does NOT give out grants. From the SBA website http://www.sba.gov/expanding/grants.html…

“The U.S. Small Business Administration does not offer grants to start or expand small businesses, although it does offer a wide variety of loan programs. (See http://www.sba.gov/financing for more information) While SBA does offer some grant programs, these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance. These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments.”

Here is a listing of federal grants for small businesses. See if there is any available for individuals for starting a business — THERE’S NONE.
Http://12.46.245.173/pls/portal30/CATALOG.BROWSE_BENEF_RPT.show

Most of the federal grants are given to specific target groups with specific requirements (e.g. Minority business owners involved in transportation related contracts emanating from DOT – Grant#20.905 Disadvantaged Business Enterprises Short Term Lending Program

Grants are also often given to non profit groups or organizations involved in training or other similar activities (grant 59.043 Women’s Business Ownership Assistance that are given to those who will create women’s business center that will train women entrepreneurs

For private grants, you may want to check the Foundation Center’s Foundation Grants for Individuals Online. It’s a subscription based website ($9.95 per month) but their opening blurb only says that the database is ideal for “students, artists, academic researchers, libraries and financial aid offices.” Entrepreneurs are apparently not one of them, so I take it they also don’t have listings of private foundations who give grants to would-be entrepreneurs.

You can start your business with no money — but it will not be easy. But if you’re willing to work hard, and be creative and willing to learn, you can surely do it.

With poor credit, getting a low-cost loan from the Small Business Administration will not be an option. In SBA’s document “CREDIT FACTORS A POTENTIAL BORROWER SHOULD KNOW” http://www.sba.gov/financing/preparation/qualify.html you can qualify for an SBA loan if you have equity investment and collateral — which both means money. SBA wants to see that you yourself is invested in your business, so they want to make sure that you have money in your business as well. Without money, then you cannot be approved.

Here are some articles that can give you ideas of what to do when you want to start a business yet you do not have capital:

Starting a Business with Little Cash? Http://www.powerhomebiz.com/vol30/nocash.htm
10 Rules for Starting A Business on a Shoestring Budget http://www.powerhomebiz.com/vol70/shoestringrules.htm
No Money? No Problem! Http://www.entrepreneur.com/article/0,4621,288954,00.html
Seth Godin’s Bootstrapper Bible http://www.changethis.com/8.BootstrappersBible
How to Start a Business With No Money http://www.smbtrendwire.com/start-business-no-money/

I suggest you read the following books as well. Borrow them from your library or buy them from your favorite bookstore

– No Cash, No Fear: Entrepreneurial Secrets to Starting Any Business with No Money by Terry Allen
– Starting on a Shoestring: Building a Business Without a Bankroll by Arnold S. Goldstein
– The Art of the Start: The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything by Guy Kawasaki

Jere answers:

Starting a small business takes a lot of courage. But, as they say, courage does not pay the bills. To be successful – to stay in business – you need more than courage. You need a combination of hard work, skill, perseverance, and lots of luck.

Some things you need to consider:
– “How can I support my family while I build up by business?”
– “What are my abilities?”
– “Is there a market for the product or service I have chosen?”
– “How long will it take this business to reach the financial goal I have?”

You may want to read the article “How to Start a New Business Successfully” http://www.powerhomebiz.com/vol51/launch.htm , which lists six steps to launch a new business successfully:

1. Provide a benefit.
2. Determine the fit with your market.
3. Right timing is everything
4. Be ready to support your business
5. Develop a blueprint for success
6. Market, market, market

To give you ideas on what exactly do you need to start your own business, here are ten things you need to know before launching your own business “10 Things You Need to Know When Starting Your Own Home Business” http://www.powerhomebiz.com/052006/startingbiz.htm .

I recommend that you read the following books:

– What No One Ever Tells You About Starting Your Own Business : Real Life Start-Up Advice from 101 Successful Entrepreneurs
– Starting From Scratch: How To Start A Business When You Don’t Have Money
– If You’re Clueless About Starting Your Own Business and Want to Know More
– On the Move : How to Succeed and Survive As an Entrepreneur
– How to Make 1000 Mistakes in Business and Still Succeed

Sometimes, you would need advice and help as you navigate the process of starting a business. There are several places where you may be able to find a mentor:

Government Mentoring Programs such as SBDCs, which works with community colleges and local business development councils to offer mentoring programs http://www.sba.gov/sbdc/sbdcnear.html ; or the Women’s Network for Entrepreneurial Training http://www.sba.gov/womeninbusiness/wnet_roundtables.html
Volunteer programs such as SCORE http://www.score.org which is composed of mostly retired executives and entrepreneurs
Formal mentoring programs such as Athena Foundation http://www.athenafoundation.org/programs/globallinks.html , Helzberg Entrepreneurial Mentoring Program http://www.helzbergmentoring.org/HEMP/ , or The Aspen Institute MicroMentor Program http://www.micromentor.org
Professional organizations such as the National Women’s Business Council http://www.nwbc.gov/Mentoring/programs.html
Industry and trade associations
Local business groups, such as the chamber of commerce
Local chapters of business groups

Also, you may want to avail of low-cost courses that SBA or local counties offer in starting a business. SBA has free online courses that you may want to take on starting a business http://www.sba.gov/training/courses.html

Jere answers:

Most “businesses” of this type are scams. If they ask you for money to “join” their exclusive group of home mailers or to prove that you are “serious about wanting to succeed”, etc., then run away at top speed. Businesses that need legit help with mailing will pay YOU to help THEM; they won’t want you to pay them for the privilege of working with them. There are legit mail order businesses out there but you’ll need to do some research to weed out the scams. Good Luck.

Jere answers:

An online business should accept credit cards or even paypal. Does this business have that option? If they don’t i would be concerned. Also most online business have a customer service number, ask them for it. Ask them to provide an address a phone number, or even a business license number that you can check with a consumer watch group. Good luck!

Jere answers:

What you want is called Business Bartering. Here is a web site that lists 10 web sites that do this. You can also search online and find many sites offering this service. Http://www.toptenlinks.com/cat.php/Business:Barter