Many years ago, businesses could start and grow with minimal
funding. Many worked from home in their spare time, or from very cheap
and primitive rental accommodation. These operation relied on the hard
work, ingenuity, native wit and relentless drive of the owners to see
them build into something profitable and reliable. The requirements of
governments and society were far fewer than today.
Contemporary society places many expectations and restrictions on new enterprises starting up. Typically location, risk, working conditions and future consequences are some of the many categories in which today's entrepreneurs find themselves enveloped. Putting in place all the systems and actions required to cope with the many demands and restrictions of laws and regulations, and of social expectations, creates a considerable burden. This is the greatest for a small business, where everything is the responsibility of a very few individuals, perhaps only one or two, at the outset.
These are some of the reasons why startup costs today are orders of magnitude greater than fifty or a hundred years ago. So while the attractions of the freedom, creativity and open-ended opportunity are as great as ever, the funds required to take a business from its beginning through to profitability are very often beyond the resources of the individuals involved.
For the business owner who wants to retain full control of the operation, obtaining funds must not involve diluting the owner's authority over business decisions. This rules out taking in a wealthy partner (if indeed one can be found!). There are few remaining options besides looking for loans or grants. In following either of these paths, there are some requirements in common.
In either case, whoever assesses the merits of the application for funds will need to be convinced that the proposal sets forth a good use of money to be allocated. There are always competing claims against which this application must prevail. The lender wants to know that the business will succeed well enough to pay the rate of interest required, and to repay the funds within the agreed time frame. The grant administrator must be convinced that funds are put to effective use, in agreement with the aims of the granting body. A business plan must be presented; one which is convincing as to the nature and quality of the business, its viability in the circumstances of the time and location, its profitability, and the likelihood that it can weather the possible winds of change or even storms of economic disruption which occur from time to time.
Government grants typically have quite specific requirements as to the nature of the purposes for which they are given. These will be much narrower than just to be profitable. The applicant must pay close attention to these and ensure that the proposal makes clear that they will be satisfied.
In general, the approved purposes for Government Grants will be in the areas of not-for-profit organisations, or businesses that are pioneering or developing some technique or technology that can be seen to have positive benefits for the wider business community, or society at large.
If a business looking for funding can satisfy these requirements, then the extra work involved in seeking out these Grants and satisfying their conditions is offset by the benefit of obtaining money free of interest payments, and of the need to repay the capital amount. A careful and detailed assessment will reveal when this is the case. The Grant Application can then become a highly appropriate and beneficial exercise.
Contemporary society places many expectations and restrictions on new enterprises starting up. Typically location, risk, working conditions and future consequences are some of the many categories in which today's entrepreneurs find themselves enveloped. Putting in place all the systems and actions required to cope with the many demands and restrictions of laws and regulations, and of social expectations, creates a considerable burden. This is the greatest for a small business, where everything is the responsibility of a very few individuals, perhaps only one or two, at the outset.
These are some of the reasons why startup costs today are orders of magnitude greater than fifty or a hundred years ago. So while the attractions of the freedom, creativity and open-ended opportunity are as great as ever, the funds required to take a business from its beginning through to profitability are very often beyond the resources of the individuals involved.
For the business owner who wants to retain full control of the operation, obtaining funds must not involve diluting the owner's authority over business decisions. This rules out taking in a wealthy partner (if indeed one can be found!). There are few remaining options besides looking for loans or grants. In following either of these paths, there are some requirements in common.
In either case, whoever assesses the merits of the application for funds will need to be convinced that the proposal sets forth a good use of money to be allocated. There are always competing claims against which this application must prevail. The lender wants to know that the business will succeed well enough to pay the rate of interest required, and to repay the funds within the agreed time frame. The grant administrator must be convinced that funds are put to effective use, in agreement with the aims of the granting body. A business plan must be presented; one which is convincing as to the nature and quality of the business, its viability in the circumstances of the time and location, its profitability, and the likelihood that it can weather the possible winds of change or even storms of economic disruption which occur from time to time.
Government grants typically have quite specific requirements as to the nature of the purposes for which they are given. These will be much narrower than just to be profitable. The applicant must pay close attention to these and ensure that the proposal makes clear that they will be satisfied.
In general, the approved purposes for Government Grants will be in the areas of not-for-profit organisations, or businesses that are pioneering or developing some technique or technology that can be seen to have positive benefits for the wider business community, or society at large.
If a business looking for funding can satisfy these requirements, then the extra work involved in seeking out these Grants and satisfying their conditions is offset by the benefit of obtaining money free of interest payments, and of the need to repay the capital amount. A careful and detailed assessment will reveal when this is the case. The Grant Application can then become a highly appropriate and beneficial exercise.