Good afternoon friends!
Today I would like to talk about grants. About grants for the development of their own business, which the state provides to start-up entrepreneurs free of charge and irrevocably.
Irrevocably means that you do not need to return the money. The state gives them to you so that you, having implemented your business project, create jobs and regularly make tax deductions to the budget.
Free means that you do not have to pay commissions or interest for using the grant. This is not a bank loan or a private loan.
You say: “This is some kind of fairy tale! It doesn’t happen in life that they give money and don’t ask anything for it! ” And this is true. Indeed, free cheese is only found in a mousetrap.
Business grants—as attractive as they are—are not free cheese. You have to pay for this CHEESE.
And now I’ll tell you what.
TIME
The time you need to
1) take a course in the basics of entrepreneurship at a business school at the regional fund for supporting small and medium-sized businesses. As a rule, the duration of training is 48 hours.
2) form a complete package of documents required for filing a competitive application for a grant. The list of documents is specified in the Grant Procedure, which is usually posted on the website of the regional support fund or public authorities. You can read recommendations on preparing documents for obtaining a grant here.
3) provide confirmation that you have never previously applied to the fund or other budgetary organizations for subsidies, grants or other types of assistance related to running or developing a business
4) develop a business plan for your project, taking into account the requirements specified in the tender documentation for a grant. This is one of the most time-consuming activities for «beginners». After all, developing a business plan is not just writing about how successful your enterprise will be, because you will offer customers the highest quality product (service) at the lowest price. Developing a good business plan includes:
— calculation of the payback period of the project,
evaluation of the economic efficiency of the project,
– preparation and justification of the competitiveness of your product (service),
— market analysis,
– calculation of social and budgetary efficiency
And many more things you need…
There are many tutorials and seminars on developing a business plan. You can find the basic rules for preparing a business plan here.
Often, realizing how much time and effort it takes to write a business plan, many entrepreneurs turn to consulting agencies or experts to order its development. What you need to pay attention to if you decide to order a business plan, read here.
There is another easier and more reliable way. Order a business plan on our website.
Our specialists have really extensive experience in writing business plans for obtaining a grant. And in most cases this experience is successful.
As a result, the grant was received.
YOUR NERVES
It’s no secret that everything related to participation in competitions is always accompanied by stormy feelings and excitement. And participation in the competition for a grant, where the winner will be given 300 thousand dollars, is no exception.
Partial peace of mind can be found if you are sure that:
1) meet the requirements that are established for applicants for a grant.
Each region independently approves a list of requirements that an applicant for grants must meet. But regardless of the specifics of doing business in each individual region of our country, there are general principles for the distribution of grants for business development between start-up entrepreneurs:
— a grant can only be received by an existing business entity that falls under the definition of a small business representative in accordance with Federal Law 209-FZ,
– a grant can only be granted to a small and medium-sized business entity that has been operating for no more than one year at the time of application in the manufacturing sector or in the service market. As a rule, the state does not give grants for the implementation of a business project in the field of trade,
– the applicant for the grant must be a conscientious taxpayer and have no debts on taxes and insurance premiums paid to off-budget funds on the date of application,
— the number of jobs created (not counting the self-employment of the entrepreneur himself) must be at least one.
Regional bodies of local self-government, within the limits of their powers, can expand the list of these requirements. Therefore, it is very important to carefully read and study the Grant Procedure!
It should be noted that the applications of applicants for a grant are considered by collegial competitive commissions established under regional local governments or funds for the development of small and medium-sized businesses.
If you do not meet any of the listed requirements, the commission will not allow you to further participate in the competition.
2) Your business plan complies with the requirements and criteria set out in the competition documentation (in particular, in the Grants Procedure).
There can be only one advice here — carefully study the requirements and criteria. Check your business plan against them. If you doubt your competence, it is better to turn to professionals. In particular, you can order a business plan assessment from us.
3) You are well prepared to defend your business project.
As a rule, one of the stages of the competition for a grant is the public defense of a business plan in front of a collegiate competition commission. To protect the business plan, you are given from 5 to 10 minutes. Then the members of the commission can ask a few questions about the essence of the project, the calculation of the economic indicators of its effectiveness, or ask for clarification on the forecast of income and expenses.
In order for your project to be adequately presented to the members of the commission, the following recommendations should be observed:
— Speak clearly and confidently. It is hard to believe in a successful business project if its initiator talks about it listlessly and without enthusiasm.
— the speech should be brief, reflect the essence of your project, its goals and objectives. Pay special attention to the promotion of your product (service) and the effectiveness of the project.
Do not get carried away with the description of the production process, a detailed story about all the useful properties of your product (service), specific professional terminology. In small doses, all this is very useful: this knowledge emphasizes your professionalism and gives you additional weight in the eyes of the commission.
However, often «professionalism» goes beyond all reasonable boundaries, and the defense is reminiscent of the old joke about Vovochka.
“Daddy, why does it turn brown when you bite into an apple?” “The fact is, son, there are various chemicals in the apple. One of them is iron. So, when iron enters into a chemical reaction with oxygen in the air, oxidation is obtained …
“Daddy, who are you talking to right now?”
Detailed recommendations for preparing a speech to defend a business plan can be found here.
— The speech must be accompanied by a presentation. Visualizing what you are saying always helps to better perceive the information. The structure of the presentation and its content should reflect the main requirements and criteria for a business plan. How to properly prepare a presentation — you will learn here.
You can also trust professionals and order a presentation of your business project from us.
YOUR COMMITMENT
And most importantly, having received a grant, you assume certain obligations:
1) confirm the intended use of the grant funds
2) confirm the participation of own funds in the implementation of the project in the amount of at least 15% of the grant amount (the amount will be indicated in your contract)
3) create jobs in the amount specified in your business plan
4) provide accounting and tax reporting to local governments or a regional fund for the development of small and medium-sized businesses
5) pay taxes to the budget and insurance premiums to off-budget funds (PF RF, FSS, MHIF).
All these obligations will be assigned to you in the grant agreement.
It will also indicate the deadlines during which you will have to report on their implementation, and liability for their violation. And the responsibility, as a rule, is one — the return of the grant in full.
Be careful, fulfill all your obligations in full and on time — and then your grant will remain irrevocable!