The Importance of Research Before Business Grant Applications

Starting a small or home based business involveshave employees.
making a lot of decisions before starting up, weighingThe next piece of research is market assessment.
options and informing yourself. Some of this isWhat's the market like for your goods or services?
obvious, like digging around for market demographics,How strong is it? Who will buy it, and why, and for
the strength of the local economy and similar. Somewhat secondary or primary purposes? Are there
of this is less obvious when applying for grants -services you can add to the sale of a good to
there's a lot of digging to be done before you canimprove the value, or a good you can acquire cheaply
get a business started.to sell with a service or bundle with a service as a
First, do the research on what sort of business youpromotional item? Are there any untapped needs, or
want to start, and make sure it's appropriate to yourneeds that you can combine multiple segments
region. There isn't much call for downhill ski trainers intogether to meet in a new way? What's your
Miami Beach, for instance. If you're entering acompetition like and what are they doing?
crowded field, you'll want to make sure your offeringAssessing needs and what the audience and
stands out from the crowd.customer base wants is a critical step in analyzing any
You'll also want to look at regional and nationwidebusiness case.
trends for this sort of business. Are sales up orAnswers to these questions and more can be gotten
down? Is there a clearly identifiable reason whythrough SCORE, which is a program put out by the
they're up or down, and reasons to predict aSmall Business Administration. SCORE is the Service
continuation of the current trend, or its reversal?Corps of Retired Executives, and is made up of
(One of the best ways to make money is to start aentrepreneurs who have retired, but volunteer their
business at the end of a downturn in a given markettime to give consults to new businesses starting out.
segment, come out with a well received product, andListen to them - particularly their stories about
sell it to an acquisitions hungry company looking tomistakes. Mistakes are costly, and are lessons
make it into that segment.)learned. Learn from the mistakes of others, as you
If you're doing manufacturing, you'll want to look atlack the time to make them all yourself.
how raw materials get in, what environmentalAnother place to look into answers to these
regulations you need to look out for, laborquestions are mentorship programs, particularly in
restrictions, warehousing and packaging and similar -technical fields, like printing. Talk to the people who
this will become a fixed item on your expenses, onehave been in the business - a lot of them will be
that recurs monthly, so take the time to comparisonquite happy to help you set up and take over the
shop now. Moving is never fun or easy.jobs they don't want to be bothered with anymore,
When it comes to production, and providing services,the smaller accounts that require more work than
you're going to need an accurate assessment of howtheir payoff justifies with their higher overhead.
much time it takes to do things. One of the bigOnce you've got answers, it's time to tally up
places where new businesses fail is that theyexpenses and the balance sheet. Look at the money
undervalue the time of their founders; when you'reyou'll need, generate a very pricey estimate of three
short on capital, sweat equity looks very tempting.months of operating expenses, including your own
There is a time, however, where it's worth it to paysalary, and see what funding sources are available.
someone else to do things, and an absolute limit onDon't forget to advertise; it's how customers find
the growth of your business if you choose not toyou!