If you're looking for a way to fund your bookkeeping startup, this article is for you.
Fast Capital 360 explains that the government and private institutions often give grants across the country that can help start your bookkeeping business.
What is the best part about these types of grants? You don't have to pay them back!
This article, written by Biz Central Help for The Marketing Department, talks about grants, which businesses can apply for, and how to find them. Read on to learn how you can take advantage of this free money.
Get a Leg Up with Business Funding
There are many different grants available. Some are state or industry specific. Be sure to read the details about each grant to confirm whether your business will qualify. Here are some of our favorite sources for grants you can use to fund your startup.
The Economic Development Administration
The US Economic Development Administration provides grants, resources and technical assistance to communities throughout the US to support economic growth and encourage entrepreneurship. Each state's branch helps local businesses find financing, grants, secure locations and more. You can use their database to find resources near you.
Warrior Rising was founded to help empower veterans in business. They provide opportunities for US military vets and their immediate families to create businesses with grant money.
Grants for Minorities
Lending Tree, an online loan marketplace for various financial borrowing needs, posted a blog highlighting 16 grant sources for minority businesses.
How Do I Improve the Likelihood of Getting a Grant?
A well-written and detailed application can be the determining factor in whether you receive a grant. If you need to study up on grant writing or business consider going back to school. Online programs offer business degrees (and degrees in many other fields) and allow you to complete the coursework at your own pace.
The internet is a great resource for finding additional small business grants. There are many helpful government databases and nonprofits to search through. The start of your research should be Grants.gov. The Small Business Administration's website, in addition to a ton of great resources for new small businesses, also has a section dedicated to grants.
Check Your Credit Report
Before applying for any business grant, it's important to check your credit report. Your credit score is a key factor in determining whether you'll receive approval for funding. If you have bad credit, it could affect your ability to get a grant. That's because lenders use your credit score to assess your risk as a borrower. The higher your score, the lower the risk you pose to lenders. That's why it's so important to make sure your credit report is accurate before applying for a grant.
By checking your report, you can identify any errors that could be dragging down your score. Fixing these errors could improve your chances of getting approved for a business-related grant.
Consider Your Bookkeeping and Accounting
When applying for a grant, it's important to make sure you have some financial stability. Trendintech article notes it also helps if your business is organized and has an accounting process in place, as this will show your seriousness and help you as the company grows. Obviously, if your intention is to start a bookkeeping business, accounting will be second nature! That said, you still need reliable apps and software to stay organized. Remember: paper is the past.
There are many options available for bookkeeping and accounting software — some more complex than others. Look for software that integrates across workflows and enables you to track and manage many aspects of your clients the business, such as inventory, payroll, and run advanced reporting statements.
Consider an LLC
When you're launching a bookkeeping business from the ground up, finding grants for your startup is just the tip of the iceberg. As you begin your search, don't forget to work on your business's organization. Besides setting up proper accounting measures, consider registering your business as an LLC.
This designation is perfect for small businesses, and it offers a few key benefits, such as personal asset protection and tax advantages. You can learn more about how to start an LLC when you look for online guides with detailed instructions. Like any process involving legal documents, it is always best to consult with an attorney.
These resources and tips are intended to help you source funding for your bookkeeping business launch. Check into them all, research what's required for applying for a grant, and address any problems with your credit score and the likelihood of success rises substantially.
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