How to find grants for a new business?

[Goochie]

I'm on the brink of starting up on my own, working initially from home improting goods from China and selling them on tho a friend who has the requirement but no means of sourcing in the Far East.

I'm based in the Midlands which, is probably classed as an area in need of a boost - it is in my mind anyway.

I understand that grants etc. are notoriously difficult to find - not because they're not available but because they're just damn hard to find!

Does anyone have any ideas on where to start looking?

I'm 29 so the Princess Trust is not an option.

I've already contacted my local Business Link who are going to get back to me later this week.

[Eric Mc]

Have you included the words "Climate Change" in your business activity?

[singlecoil]

You need to think about what their reasons might be for offering you a grant.

For instance, will you be creating any jobs? Especially manufacturing ones?

[Goochie]

I've looked at the carbon neautral loans but as I'll be working from home initially there's nothing there for me.

I wont be creating manufacturing jobs but because my friend will be able to save money on components costs, he will be in a stronger position to safeguard manufacturing at his company (also in the Midlands).

[singlecoil]

So what would you be spending the grant money on, what exactly would be its purpose.

I'd have to say it's not looking good for a grant, or even a loan (although loans can usually be got if you have some collateral).

[Stu R]

Business link were actually pretty decent for me in this respect (rubbish in most others though). I basically just gave them a copy of my business plan and sat down with the advisor for half an hour and ran through what we'd be doing. She took a few notes and identified a few areas we could apply for funding etc. Didn't bother taking it any further but it's probably worth hearing what they've got to say.

Sounds daft to say but there's far too many funding schemes out there, it's something that could really do with being better organised as it's a nightmare having to wade through them all.

[Dick Dastardly]

If you can change your business from "bringing stuff from China and selling it in the UK" to "selling stuff from the UK to China" then they'll throw money at you. A few companies I deal with receive money each month to help them promote their services abroad.

It's also a lot easier to get funding if you sell to businesses rather than consumers and easier again if, one you have the funding, you will be more likely to expand and create employment.

[Goochie]

Funding would be used to pay for tooling 3 products but the total for this would be less than £8k.

Whilst I could fund this myself, it is of course more cost effective if all or part of this can be found elsewhere. The tooling cost will be refunded by the factory once we reach a given quantity (which is around our 12 month projected usage).

However I'm hoping that this first order is the tip of the iceberg and once I've got the first product comign through for this particular customer, I can start to promote my services to other companies in the area. The aim being to help businesses reduce their costs by sourcing components etc. more efficiently. However, this may pose a risk to those currently employed by those businesses (if you can improt the same product cheaper, why employ a person in the UK to make it?).

[Audicab]

Business Link are a good place to start, we have received grants for attending exhibitions, IT projects and investment in infrastructure.

None of them were for more than £5k and on a 50:50 basis but every penny counts.

There is a lot of form filling to complete but could help.

[williamp]

Goochie said:

Funding would be used to pay for tooling 3 products but the total for this would be less than £8k.

Whilst I could fund this myself, it is of course more cost effective if all or part of this can be found elsewhere. The tooling cost will be refunded by the factory once we reach a given quantity (which is around our 12 month projected usage).

However I'm hoping that this first order is the tip of the iceberg and once I've got the first product comign through for this particular customer, I can start to promote my services to other companies in the area. The aim being to help businesses reduce their costs by sourcing components etc. more efficiently. However, this may pose a risk to those currently employed by those businesses (if you can improt the same product cheaper, why employ a person in the UK to make it?).

You've made quite a lot of assumptions there. With most Grants, you need to prove that the project would not succeed without it. The fact that it would be easier with a Grants doesnt cut it (its tax payers money, afterall). And you have already said you can do it yourself. At the latter stages of grant application, they'll discover this and you wont be awarded anything. You can "hide" the fact that you can succeed without it, but its hard work

The exception to the norm is "R&D Grants", for which there are many and a lot are now around carbon effeciency. these dont necessarally have to work, but usually allow a company to change to a more innovative/cleaner/greener process or solution.

Also, in the grand scheme of things, £8k isnt a lot of money. And proving you need a grant can take up a lot of time and effort- in some cases, more then £8k of your time. Hence there's no point in you going through the application process. A lot of grant providers look very closely at your business model, and will probably say that with effeciency savings you can make an £8k saving.

Fianlly, you are talking about paying it back. A grant is a gift of money, subject to rules and is only subject to "claw back" if you havent met the criteria (ie you got a grant for plant and machinery, but decided to spend it on a new car intead). As you are looking to pay it back, you would be better off with a loan, ratehr then a grant. There is something called the Loan transition fund in the midlands which might suffice

whereabouts are you? For the west mids, have a look here http://www.advantagewm.co.uk/

For the east midlands, try www.emda.org

There's also grant finder:
http://www.grantfinder.co.uk/

But they will probably tell you what I've just told you.

Fianlly, have a look here:

http://www.ginem.co.uk/

Growth investment network. A netork of private companies and individuals who might invest.

Hope this helps

[mattviatura]

You're having a giraffe, getting a grant out of this government is not going to happen unless you're an ex-convict or soemone who might otherwise suffer discrimination.

[Gibson70]

OP, have you tried your local council to see if you're eligible for a grant? They will want to see if you will be able to provide jobs and what you will do with the grant money......

Just a thought....

Edited by Gibson70 on Monday 15th March 15:30

[Jasper Gilder]

Go to Business Link - s decent business adviser can really help and the form filling isn't that painful

[maser_spyder]

Hi Goochie,

I'm now back from my (rather long, sorry) holiday.

I'll give you a shout on this, there might be some leeway with China on the moulding front if you're buying enough of them.

[dilbert]

Audicab said:

Business Link are a good place to start, we have received grants for attending exhibitions, IT projects and investment in infrastructure.

None of them were for more than £5k and on a 50:50 basis but every penny counts.

There is a lot of form filling to complete but could help.

Without casting any aspersions, isn't that the problem.

Government spending money to get businesses to attend exhibitions. For the government it's great when things are pants. It gives the illusion that things are better than they are.

There is no reason a business would refrain form exhibiting at a suitable exhibition, save for the one where they don't have any money.

I'm surprised there aren't businesses that from to look like businesses at exhibitions, for the purposes of netting government grants.

Clearly the worse things get for everyone, the more successful the programme appears.

To me this is not survival. This is bleed your competitors dry. It's money I couldn't accept, because of it's fundamentally corrupt Labour mentality.

Edited by dilbert on Monday 15th March 16:42

[S1M VP]

OP.
PM me and I will send you some email addresses and names of the guys who you should speak to re grants at AWM. These are the guys who you send your application to and will help fund r&d or NLT research, but it'll be 60/40 or 50/50
you won't get a grant to fund something you could yourself.

[Doofus]

OP
I have a chap who will find relevant local, national or European grants for your business. This is what he does for a living, and I've had some good results from him in the past.

He charges a success fee.

PM me if you're interested.

PJ

ETA: In general, grants in the Midlands tend to be linked with employment. If you're not employing anybody (particularly anybody unskilled), grants are even harder to secure.

Edited by Doofus on Tuesday 16th March 20:36

[Goochie]

maser_spyder said:

Hi Goochie,

I'm now back from my (rather long, sorry) holiday.

I'll give you a shout on this, there might be some leeway with China on the moulding front if you're buying enough of them.

Thanks Nic - Current esitmate is around 2,000,000 pcs a year.

[maser_spyder]

Goochie said:

maser_spyder said:

Hi Goochie,

I'm now back from my (rather long, sorry) holiday.

I'll give you a shout on this, there might be some leeway with China on the moulding front if you're buying enough of them.

Thanks Nic - Current esitmate is around 2,000,000 pcs a year.

There's leeway.

[elster]

When I was doing some work at Amazon I noticed a series of books listing all available grants in the UK annually.

I will have a look and see what it is called. It is a big book though.