Q: Where's the money to start or grow a business?

A: I think the need for money is not as important as having the time to look for the money. There are literally thousands of places you can search. So having the time to search is very important especially if you are looking for grants. There are grants for businesses out there. They are not as plentiful as other sources of funds for business, but they exist. I recently received a listing of 20-30 businesses that received grant money from the state of Maryland last year. They were both big and small businesses. The federal government also gives out grants to businesses. Congress recently passed legislation that gave more grants to airline companies. They already receive government grants to provide air service to small towns. The federal government also awards thousands of grants to businesses to work on new ideas. A Buffalo company recently received $200,000 to make a rodent repellant out of hot chili peppers. Would you know to ask for that? I wouldn't have.

Here are the major sources of business funding including grants, loans, venture capital, etc.

1) County or local government:
- Every state and local jurisdiction has funds to help businesses start or expand in their area. This money could be given to them by the federal government, the state government, or may be generated from local taxes or through grants. Be sure to check here first. Contact your local city hall or county government building.

2) State government:
- Every state definitely has money programs for businesses. And they also have a lot of other help for entrepreneurs. This is a must check place no matter what you want to do. A good starting place to see what your state has to offer is to contact your state office of economic development located in your state capital. Most also have decent web sites to get you started.

3) Federal government:
- There are over 100 federal money programs to help businesses and most of them are described in a book called The Catalog of Federal Domestic Assistance. This book is published by the U.S. Government Printing Office and is available in most public libraries. It describes over 1,000 government money programs and is the book I copy from when I write about federal government money. Remember, nothing in the government is copywrited, so it's okay to copy. You can also check it out online at http://www.cfda.gov.

4) Venture Capital
- There are thousands of venture capital companies in the United States and there are a number that are supported by government money. Sometimes these people are called angels because they give you money to get your idea off the ground. What they ask in return is to be some sort of partner. There are a number of books in the library that attempt to catalog these organizations. Your state office of economic development may be able to identify those that are active in your area. But don't stop there. Companies from anywhere in the world will invest in a good idea no matter where you are.

5) Government contracts:
- Most entrepreneurs don't realize that all they need is a contract to be in business and they may not have to spend their time looking for grants and loans to get their business off the ground. For example, if you want to start a small service company, like being a web designer or landscaper, a $100,000 contract worth of work would be a lot better than a $100,000 grant or loan. Remember, the ultimate objective of any business is to satisfy a customer, not to figure out how to get a loan or grant. There are thousands of government-supported offices all over the country that will help you get government contacts, and they're free. Contact your state office of economic development located in your state capital to get started on the search for this help. Also remember that the government has special set-a-side programs for small, minority and even women-owned businesses. The government actually considers businesses disadvantaged if they have less than $750,000 in the bank! You can also find Procurement Technical Assistance Centers at http://www.dla.mil/db/.

6) Non-Profit Organizations:
- There are many non-profit organizations that offer low-cost loans and even grants to entrepreneurs. Many of them get their money from government programs or from other non-profit organizations. The government has some programs that give money to non-profits who in turn give the money to entrepreneurs. These groups can be difficult to find because they are not organized as well as government sources. You can start by contacting your state and local government offices for economic development or your local public library. They're hard to find, but that usually makes them worth it.

7) Credit Cards:
- According to a study by the big accounting firm of Arthur Anderson, small businesses use credit cards to finance their business more than any other source of money. This can be a really dumb source of funds, especially if you are using what could be a typical credit card interest rate of 10-24%. So make sure you investigate all the other sources before you use a high priced card, or spend your time finding low interest rate cards.

(My books that speak to this subject best are "Government Giveaways For Entrepreneurs" and "Free Money To Change Your Life." The difference is that "Government Giveaways" has a lot more information about entrepreneuring only and "Free Money To Change Your Life" has a lot more sources of money and help for doing other things, like going to school or getting a better job. In addition you should have "Free Money and Help for Women Entrepreneurs" if you are part of the surge in female entrepreneurs. If women have to choose one, choose this one! We will also have available soon a CD-ROM with 50 successful business plans. Check the web site for availability.)

I hope this helps! Also check out www.FreeForVictims.Lesko.com for more resources!