Quote:
|
Originally Posted by Halx
I'm currently drawing up a business proposal (or as my dad called it, a vision) that I hope to draw some interest with. My plan is a hard sell - not a guaranteed profit. I'm contemplating moving along the non-profit lines, but I first want to see if I can get some grants and perhaps some venture capitalists who have some extra money to throw around.
My question would be to those who know small business. What are some grants that I can apply for, and through who? Do I need a profit forecast to get started? How can I get anything like that if I don't have any business education and currently no capital to hire someone who does? Finally, are there any off-beat web resources that you would suggest?
|
If you're not planning on making a profit, most VC won't touch you with a 10 foot pole. They want a return on their investment for the most part, and considering most business plans have fluffed up numbers to start with, one that shows a loss over a five year span is not really looked upon favorably.
As for a nonprofit, keep in mind that they take lots of effort and you won't get much back - they're called "nonprofit" for a reason. What you need to do is to decide what exactly your goal is, and then go after specific grants. Most grants will come from the government (federal or state, although state grants have become increasingly rare with the current fiscal state of most governments) and from large charitible funds. Grant writing for the application is actually a very well-honed skills, and good grant writers are very sought after and paid well.
To get started, get a business plan and model down and in writing, then start assembling some numbers. There's a few terms to keep in mind, such as net income and cash flow (not the same thing). If you've got a CPA friend, start hitting them up for some help on putting the numbers together.
Most plans I've seen have a short (less than one year), mid-range (1-3 years), and long term (3-5 years) sections, and numbers to go along with those for all periods. Round your numbers to the nearest hundred.
If you have no cash, start hitting up friends with some biz exerience quickly, and see if you can swap services (if you do any web page design, you might be able to trade off).
Good luck, keep us updated.