7.06 – Finding Free Money (mention 15% of sales grant money)
Sometimes, if you’re lucky or smart, you can get some of the money you need for free. This section covers how to cash in on government grants, how winning a contest can earn you substantial funds, and how to harness the power of crowdfunding.
Getting A Grant
Unlike debt, which you have to repay, or equity, which requires a return for the investors, grants and awards from the government or the European Union are often non-refundable. Though they’re frequently hard to get, grants can be particularly valuable.
Almost every country has incentives to encourage entrepreneurs to invest in specific locations or industries. For example, the USA offers Green Cards (work and residence permits) to several hundred immigrants each year who are prepared to invest sufficient funds to start a substantial business in the country.
Grants often come with conditions, such as needing to locate in a specific area, take on employees, or find matching funding from another source. Many grant schemes operate across the UK and are available to businesses that satisfy the criteria. The location of your business can be crucial, as some grants target specific areas, especially those with social deprivation or job creation needs.
For the most up-to-date information on available grants, visit Grants Online.
Winning money
If you enjoy publicity and like a challenge, look out for business competitions to enter. Business competitions, like national lotteries, are somewhat of a hit-or-miss affair. However, one thing is certain: if you don’t enter, you can’t win.
More than 100 annual awards take place in the UK alone, aimed at new or small businesses. These competitions are mostly sponsored by banks, major accountancy bodies, chambers of commerce, local or national newspapers, business magazines, and the trade press.
Government departments may also have competitions to promote their initiatives for exporting, innovation, job creation, and more.
The nature and amount of the awards change from year to year, as do the sponsors. Looking in the national and local press, particularly the small business sections of The Times, Daily Telegraph, Daily Mail, and The Guardian, and on the internet, should connect you with competition organizers.
Money awards constitute about 40 percent of the main competition prizes. Most cash sums are less than £5,000, but a few exceed £10,000, and one British award is for £50,000.
The consulting company Boost claims to be the world’s first and largest awards entry consultancy. Boost can help your team or organization enter and win the right business awards. They offer a useful directory of awards such as The Queens Awards for Enterprise and the SME National Business Awards. One notable award is The eBay for Business Awards, which offers one lucky winner up to £20,000 to boost their business, along with a bundle of marketing support. Access Boost’s directory of around 80 UK business awards at Boost Awards List.
By exploring these options, you can find opportunities to secure free money to support and grow your business, giving you a financial boost without the burden of repayment or equity loss.
