So You Think Government Grants Don’t Fund Business?

Think Again

The overwhelming consensus out there is that grants are for education, for social aid organizations, art and possibly for help with bills. The point is made that there are no government funds for “for-profit” business endeavors, so don’t try. Either these people haven’t looked and have put their thinking cap away – permanently.

Think again.

If you visit any one of the many government funding web pages, you will find funding for-profit companies move in the direction the government decides it wants to fund. Two came up immediately. The first that came up today in searching were medical profiling services, something social services or community health/youth health centers can get as a contract. These centers could add to their current service and receive the government funding for adding this to their services. Not only that, these centers did not have to come up with the plan, they only had to respond to an invitation to upgrade their business, and apply.

The other that came up right away today was a government grant for any company involved in delivering internet services. They are looking for any of these companies to expand their range to include more rural areas. The funds were not meager, exceeding $250,000 per contract.

The company did not have to come up with and bid for an idea. The government has the funds available and any company that thinks it wants to and can expand to provide wider coverage, these companies will receive these funds. Not chump change. These are FOR-PROFIT companies getting funded to grow their company, and its income.

There are those who do not fit this picture. You may not own a company. So how can government grants serve your one-person “company”? I have a great story for you.

This week, I have been watching as my friend’s garage sale getting pulled together. It opened Friday for 6 hours and finished Saturday at 3 PM. The woman she hired to run the garage sale made it clear that her Estate Sale/ Garage Sale business is booming.

She said it was lucky, because she is currently employing her husband! after getting laid off from a 21 year career in publishing. Only 8 months ago her garage sale/ estate sale business was still just a hobby, and certainly not the the mainstay of the family.

She only began doing garage sales for people 2 years ago, and just for fun and a bit of money. She considers it to be just like “playing store”.

It now supports the entire family. She is able to turn my friend’s garage sale that would have probably made her $800 AT MOST into a handsome paycheck of $4500 in just 12 hours. Now I was the one who saw the “trash” as I deemed it, and and I SAW THE MONEY At THE END of the weekend. This really did happen!

OK. It must be said: these people do their homework. They look up the origin for every piece and research their value. She spends weeks cleaning, polishing and arranging the items for sale. Each album is looked over to see if it will play. The books are inspected. The silver and china is researched – on her new computer. They list the results right next to the product to show its current value.

She had applied for some help for her business. She needed what some call a micro-grant. What surprised me was how little it took to upgrade this hobby to a business. The difference for them in having this hobby go from an occasional income to a full blown business with serious income was very little. Small funds were adequate to upgrade what she does from a hobby to supporting the household. She required ESTATE SALE signs (apparently they get stolen regularly) and tables, an oxygen tank for balloons that guide people to her sale, and some help with her meager web presence. She said that most of her advertising is free (as in Craigslist) but she had been using internet cafe computers to get online and update her ads. The micro-grant helped her get a new computer so as to get the ads and her web presence up and fully functional.

The biggest problem she faces is disbelief. People do not believe her numbers. Having seen it with my own eyes (we were visiting for the weekend) I can see how she might run into people having to see to believe. Now that she has a solid web presence she can post “testimonials”. Some of the stories she has blew me away. She has picked up two new clients just over the weekend.

This is what I call economic stimulus plan. The results from the micro grant she got is outstanding. It helped a family remain afloat. This hobby-become-business IS the difference between this Austin-based family sinking and making it, making it really well.

The business has been doing so well that the mother and daughter just took ten days off to go on vaction as a reward for an enormous Estate Sale they just finished in their home town of Austin, Texas.
Dad stayed home to watch the NBA playoffs The college student son’s micro loan got paid off. All pistons are firing for this family, even in the midst of this economic downturn.

These grants are available. Obama has released funds in the economic stimulus plan signed into las in February. What is available is different than under the Bush Presidency. Think again and look into it.