Growthink Blog

How to Find Grants - The ONE Website You Need to Know About


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The sky is falling. The sky is falling. While that's the news the media is telling us everyday, it's not necessarily all true.

While the economy is clearly not doing so well, there is still tons of money available to organizations via loans, investments and grants.

In fact, with regards to grants, last year more than 75,000 U.S. foundations gave $45.6 billion to organizations and individuals, according to Foundation Growth and Giving Estimates: Current Outlook (2009 Edition). That's $45.6 BILLION!

Do you want a piece of that money? Well, if you do, there is one site that you MUST visit: FoundationCenter.org.  Right on FoundationCenter.org's homepage you can start searching thousands of foundations that provide grants. You can even search by factors such as your zip code and market sector to zero in on the most appropriate grants for you.

But, before you rush to give FoundationCenter.org a try, you need to know the one key fact about private grants that no one seems to tell you. Foundation grants are only for non-profit organizations.

So, if you are a non-profit organization, you should definitely stop what you're doing and go to FoundationCenter.org to see what grants might be available to you.

I know what you may be thinking right now...How does this help me? I'm running or starting a for-profit business.

I gotcha.  And fortunately, there are also billions of grant dollars available for you too. However, getting these dollars is a bit more tricky. Your business needs to be in certain sectors. You need to know where to look. You need to know how to apply and the secrets to making sure your application succeeds.

To answer these questions and make winning grants for your business a whole lot easier, my team and I just completed Growthink's "Step-by-Step Guide to Raising Capital for Your Business from Grants."

The guide is focused on teaching for-profit businesses how to raise capital via grants.  Growthink University members have already been sent their copy of this special report. Others can learn more and download it today by clicking here.


Grants for Your Business: An Exciting Truth Amongst Lies & Misinformation


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As you may have figured by now, I'm on a quest to help all business owners and entrepreneurs get funding for their businesses.

I believe that all entrepreneurs who are willing to invest their time and their lives into starting a new or growing an existing venture should be given the opportunity to do so. Clearly, their business concept must be viable, their business plan must lay out a pathway to success, and they must invest the resources in learning how to raise capital. But once these conditions are satisfied, I find it very saddening when entrepreneurs put in a solid effort but are still unable to raise the capital they need.

In my quest to solve the eternal funding issue, my team and I have been working on really figuring out an elusive form of capital: grants.

Grants, as you may know, are given to thousands upon thousands of companies each year totaling billions of dollars. Furthermore, they don't need to be paid back. So, on the surface, grants are a really interesting funding source for businesses. As you can imagine, when we started putting together our report entitled the "Step-by-Step Guide to Raising Capital for Your Business from Grants," we were really excited.

But, the excitement faded a bit when we learned about all the lies and misinformation there is out there regarding grants. Let me tell you the two that frustrated me the most.

Myth 1: Grants are offered to businesses owned by women, minorities and the disabled. This statement is 100% FALSE. In fact, NO grants are set aside specifically for small businesses run by women, minorities and the disabled; all grants from the federal government are open to a multitude of groups which include these businesses.

There ARE loans and government contracts reserved for women, minorities and the disabled, but NOT grants.

Myth 2: Grants for businesses are available from both the government (federal, state and local) and private and public foundations.

This too is false. The truth is that with few exceptions, grants offered by private or public foundations are NOT available to for-profit businesses. They are exclusively reserved for non-profits.

There is a silver lining here however. While we have found all the misinformation discouraging, we have uncovered that billions of dollars ARE given to small businesses each year via federal, state and local government grants, and more importantly, we've uncovered the formula that entrepreneurs and business owners can use to gain these dollars.

My team and I have been hard at work finishing the "Step-by-Step Guide to Raising Capital for Your Business from Grants." The report is now available, and you can download it here.

What is an Emerging Company?


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Over the years, descriptions, or "boxes," for various type of privately-held companies like "middle market," "venture-backed," "startups," "small and medium-sized enterprises (SME's)," to name a few, have been tossed around so much as to obscure and confuse their original meaning and intent.

This is highly unfortunate, as it creates opaqueness and inefficiency in an asset class already plagued with too much of both.

Let's leave the official classifications aside for now and focus on developing an identification process for the kinds of private companies that are worthwhile for the growth investor to consider for their portfolio.

At Growthink the catch-all term we use for the private companies we like best is "emerging." It does not suffer from "commentary fatigue" as do private equity and venture capital, and it effectively carves out the large mass of startups and small businesses destined to stay small.

Webster defines "emerging" as follows:

1. To rise from an obscure or inferior position or condition
2. To rise from or to come out into view
3. To become manifest
4. To come into being through evolution

Let's elaborate on these definitions in the context of an investable company.

1. To Rise From an Obscure or Inferior Position or Condition: Emerging companies are, in their most common and interesting form, small and obscure. Microsoft and Google were once just a small group of programmers and were deep under-the-radar. And if you were invested in them then, your life changed dramatically for the better as they emerged. Less famously but still extremely lucrative were companies like the below that emerged to significant exits for themselves and their investors:
  • About.com: acquired for $410 million by the New York Times
  • Advertising.com: acquired for $435 million by AOL Time Warner
  • Affinity Labs: acquired for $61 million by Monster Worldwide
  • AllBusiness.com: acquired for $55 million by Dun & Bradstreet
  • Aruba Networks: IPO at a $1 billion valuation
  • Club Penguin: acquired for $350 million cash (and possible $350 million earnout) by Disney
  • FraudSciences: acquired for $169 million by PayPal
  • Glu Mobile: IPO at a $371 million valuation
  • Last.fm: acquired for $280 million by CBS
  • Mellanox Technologies: IPO at a $579 million valuation
  • Orbital Data Corp.: acquired for $50 million by Citrix Systems
  • Overture: acquired for $1.63 billion by Yahoo!
  • Photobucket: acquired for $300 million by Fox Interactive Media
  • Speedera Networks: acquired for $130 million by Akamai
  • Skype: acquired for $2.6 billion by eBay
  • The Generations Network: acquired for $300 million by Spectrum Equity Investors

2. To Rise From or To Come Into View: Emerging companies are often ones that have fallen on hard times and are seeking to "rise from" their current distress via turning around and restructuring their businesses. The banking and real estate sectors are right now treasure troves of fantastic distress and turnaround opportunities, as are arenas like publishing and the automotive industry.  As adversity intensifies, so does emerging opportunity.

3. To Become Manifest: Here we need Webster's help again - to become manifest, or to be "readily perceived," or to be "easily understood or recognized." Emerging company businesses are SIMPLE businesses. They make things or provide services, and sell them for more than they cost to make or deliver. And every quarter and every year, they just "chop more wood" and "carry more water," and thus drive revenue and earnings growth. It usually isn't fancy nor often even terribly interesting. But it almost always is easy-to-understand and recognizable in the company's financial statements. An important note here is that emerging companies, contrary to popular belief, are usually NOT venture capital-backed companies. Why? Because they don't need to deficit finance their businesses because they are cash flow positive. In fact, the very sign that a company needs outside financing (see GM, AIG, et al.) is often the best sign that it is NOT an emerging company because they can't make any money. 

4. To Come Into Being Through Evolution: This is perhaps my favorite because it references the essence of any business - the talent of its people and the quality of its corporate culture.  The best emerging companies are always run by a group of hard-working, thoughtful, creative, persistent, and fantastically committed owner-operators. They devote their lives to their businesses for multiple, non-contradictory motives. They want to offer true value to the marketplace with their product and service offerings. They want to leave a legacy via building enterprises of lasting value and character. And they want to make a lot of money. Accomplishing these 3 objectives in a big way involves a lot of trial-and-error and a lot of figuring out all of the ways not to invent the light bulb. While popular business culture is fascinated with the "golden boy entrepreneur" stories (i.e. Microsoft and Google), these are much more the exceptions than the rule. Far more common are stories like Amazon, Kinkos, The Body Shop, Outback Steakhouse, or even Wal-Mart and Hewlett-Packard - companies that had reasonably long gestation periods, and a lot of slow or no growth periods, before evolving to successful forms. And then continuing to evolve as market and competitive conditions dictate.

If you are a fundamental investor, look for the above qualities in companies you are considering for your portfolio.  Look for them quantitatively with the key metric of operating cash flow growth (everything else is subject to accounting whim) and look for them qualitatively in the mindset of management and in the tenor of the corporate culture.  If both the numbers and the business tone align and you can get in before the whole world knows about it, then you have yourself a money-maker.  Or, another way of saying it, an emerging company. 

5 Tools to Improve Your Productivity, Creativity & Efficiency


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We could all use tools to increase our productivity, creativity and efficiency. Below are five tools that I have either been using for years, or just adopted, that have helped me, as I'm sure they can help you too.

1. 99designs.com

99designs is a site that I was recently turned onto and it's really cool. If you need a great logo designed for your business, this is the way to go. Before I tell you how it works, let me tell you about the old way of getting a new logo. The old way was to first look at several designers' portfolios to see which one had created logos that you liked. Then you would hire one designer. Next you would write down and give them your design specifications. Then, you would hope that they came back to you with a solid design, or one that was good enough that with a few tweaks could be improved.

Needless to say, the process took a long time, and more times than not (I say this from lots of experience) produced less than optimal designs.

Now, let me tell you how 99designs.com does it. First, you post a design brief, which is easy to do since the site leads you through some questions.

Next, you set your budget (amounts generally range from $100 to $600). Then, designers from around the world submit design concepts to compete for your business. During this process, you can rate the designs and provide feedback to help the designers deliver what you want. In the final step, you choose the winning design and pay the designer the amount you set, and the designer sends you their completed design (along with copyright to the original art work).

So the key points are 1) you don't have to spend hours finding designers and judging portfolios, 2) you don't pay anything (except the $39 fee to 99designs.com) until AFTER you see the design you want, 3) you get lots of designs to choose from, at least one of which is usually great (the higher your budget the more designs you get; for $300 you can get up to 100 submissions usually).

2. PDF995


PDF995, located at pdf995.com allows you to transform any document (e.g., Word file, Excel file, web page, etc.) into a PDF document. Best of all, there's no cost to download it. I used to use the official program from Adobe, but it's expensive and constantly crashed my computer.

I often use PDF995 to convert Word files to PDF files. This usually makes the file size smaller and ensures compatibility for whoever wants to view the file. It is also good for copyright protection (makes it harder for others to copy your work). I also use PDF995 a lot for converting web pages into PDF files. A lot of times I come across web pages that I want to reference later. Sometimes I bookmark them, but oftentimes the page may change. So, I PDF the page and file it away so I can access it whenever I want in the future.

3. Firefox Plugins

For those who have not yet tried the Firefox browser, I highly recommend it. Not only is it very fast and stable, but there are tons of plugins that make it more productive. A few plugins that I use are MeasureIt (allows you to quickly measure the dimensions of anything on the web page you are visiting), ColorZilla (allows you to click on any pixel on the web page to see its precise color) and FireShot (allows you to quickly take a screen shot and manipulate it (e.g., crop out sections; add comments; save file).

These are just the tip of the iceberg. Here is a full directory of Firefox plugins: https://addons.mozilla.org/en-US/firefox/

4. Bubbl.us

A mind map is a visual diagram used to represent words, ideas, tasks, or other items linked to and arranged radially around a central key word or idea. Creating mind maps are great for mapping out new projects or ideas, particularly if they are not linear. For example, if you want to create a new ebook, you may start with the word ebook in the center. Then you may draw a line to "creation" which will then have sub-sections for research, writing, etc. Another sub-section of the word ebook would be marketing, which would then have its own sub-sections. Etc.

My frustration with mind mapping is that, while easily done using pen and paper, I prefer a digital copy so that I can distribute it to my colleagues and/or modify it over time. And traditionally, creating mind maps with programs such as PowerPoint, took forever.

Enter Bubbl.us, a new online tool that allows you to create, save and modify mind maps REALLY easily. Give it a try. You'll be amazed at how easily it works and it's totally intuitive to use. And currently there are no fees.

5. Springwise.com


The final tool I'd like to tell you about today is Springwise.com. Springwise has created a network of 8,000 "spotters" from around the world who "scan the globe for smart new business ideas, delivering instant inspiration to entrepreneurial minds." On the site, you'll learn about businesses like Wonderpizza, a pizza vending machine developed in Italy, and Dogtree (dogtree.com.au), an Australian social network that helps dog owners find playmates and walking friends for their dogs.

Springwise is great for inspiration and brainstorming. It gives you unique concepts and ideas that can really get your creative juices flowing.

I hope you can use these tools and ideas to help you and your business. If you have any comments or questions, or want to post your own tips to help your fellow entrepreneurs, please add them in the comment section below.

Idealistic Capitalists


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Investing in startups and emerging companies is the process of identifying and backing the entrepreneurs and executives with the best ability to move efficiently and profitably from ideas to execution, and then from execution back to ideas and then back to re-focused execution. And finding those that do so on all aspects of their businesses -- marketing and sales, operations and finance.

The entrepreneurs to avoid are those overly focused only on ideas or only on execution. Those focused only on ideas often let the desire for the perfect negate the doable.  They don’t quickly and rigorously subject their ideas to the rumble and tumble of the marketplace. Here we are referring to the great idea person that never gets around to actually executing upon an action plan. 

On the other hand, those entrepreneurs focused on just execution, while at some levels far more effective than the ideas set, are often too slow to react to changing technological, marketplace or competitive conditions. They often define their value offerings so narrowly that they miss adjacent opportunities. Classic examples of this include IBM defining themselves as a computer hardware as opposed to a technology solutions company in the 1980s, thereby ceding the operating system software market opportunity to Microsoft. Or the traditional phone companies in the 1990’s not leveraging their huge patent portfolios to profit in the emerging mobile communications and Internet marketplaces.

Contrastingly, the best entrepreneurs and successful executives are constantly finding the balance between ideas and execution. They are masters at what we at Growthink like to call, “The Business of Ideas.” They are both creative and task-focused, but not too little or too much of either. They make plans and they work them, but they are not slaves to them. They understand that great businesses are inspired by ideas, but their success is counted in cash.  They are, in essence, “idealistic capitalists,” believing that the best ideas, the best products, and the best services make the most money.

Entrepreneurs running businesses like these are few and far between for sure. But when it all comes together, legends are born and fortunes are made.


Effort is Everything


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Stanford psychology professor Carol Dweck in her book "Mindset: The New Psychology of Success," addresses the fascinating issue of why some people and companies achieve their potential while others equally talented and positioned don't.

The key, interestingly, is not ability.

Rather it is whether ability is viewed as something inherent that needs to be demonstrated or as something that can be developed and increased over time, through persistence and experience. Incredibly important for entrepreneurs is the corollary idea to this -- namely that if you take on the belief that ability can and must be developed (as opposed to being something that you either are or are not born with) that great strides in performance are possible.

This "effort effect" is really a key success metric for emerging and middle market companies. In today's globally competitive, fast-changing marketplace, great companies are built not simply via aggregating talented teams, but via aggregating talented teams and creating a corporate culture that rewards thoughtful risk-taking and "learning on the fly" -- thoughtfully incorporating market and competitive feedback into managerial decision-making processes.

Another way to think of the Effort Effect is that business in the 21st century is not a place for resting on one's laurels, resume, or past successes. Rather, it is an increasingly global, level playing field where individuals and companies can rise from the humblest of circumstances, and via effort and imagination, rise to compete and win on the grandest of stages.

And make themselves and their investors a lot of money in the process.


Seeking Alpha


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The overriding body of statistical research conducted over the past 30 years shows that the vast majority of all venture, private equity, hedge, and mutual fund manager's investment return performance is worse than that of the market averages.

Stepping back for a moment, one should really be struck by how absolutely amazing this fact really is.

Think about it - here are some of the highest-paid and theoretically smartest people in the world, and yet if you take their advice you will most likely have a below-average performing investment portfolio. A famous feature in the Wall Street Journal for many years had a cross-section of well-regarded investment analysts pick stocks head-to-head against a monkey and a dartboard.

And this randomly-generated portfolio did, on average, appreciably better than the portfolio assembled by the top-shelf analysts.

Now, once-upon-a-time in a more innocent age, these results could be taken in an almost light-hearted manner. Overall stock market performance was generally good enough to overlook the reality that the huge infrastructure of Wall Street brokerages, analysts, and commentators essentially added no value. Over the past 25 years, there was so much money to be had by all as the investment management industry grew from a relatively quiet backwater to the behemoth that it is today, institutional and individual investors did "well enough" to not rock the boat on this issue.

As an aside, I think the main reason for the relative quiet has been that the investment industry has always been truly the ultimate old boy's club. Pension fund managers, the family office guys, the analysts at the big wirehouses and those that ran mutual and hedge and venture and private equity funds all traveled (and still do) in the same social circles. They all went to the same Ivy League colleges. Same golf clubs. Same charity banquets. It has been, for a long time, a nice, lucrative, relatively low stress, insider's game.

But the event of the last 6 months have taught us that those days are over. And from the perspective of believing that entrepreneurs and the operators of companies, and not financial intermediaries, should get the lion's share of a capitalistic economy’s financial rewards, it is about time.

We here at Growthink, as any regular reader of our contributor columns know, are not interested in being sideline commentators or market prognosticators. We'll leave that to the talking heads. Rather, we focus our effort in identifying, in investing in, and in helping startups and emerging companies grow and prosper. Why? First, because we believe that entrepreneurship is by far the greatest force for positive social and economic change in the world today. And second, because in modern, efficient markets, it is ONLY via investing in these companies that investors can consistently earn alpha returns.

Startup and emerging company investing, when done right, offers a unique combination of both value and trading-based fundamentals. Value-based because entrepreneurial companies, on average, offer a far higher probability of revenue, asset, brand, and cash flow growth than larger enterprises.

And trading-based because the equity in these companies can be bought in highly inefficient markets. These inefficiencies are two-fold. First, these companies trade in inherently lopsided markets - there are always a lot more sellers of startup and emerging company equity than there are buyers of it. 

Second, because there are so MANY of them - more than 500,000 new companies in the U.S. coming on-line every month (startups) and more than 2.2 million firms with between 5-100 employees (emerging companies), the savvy, hard-working investor can consistently achieve significant information advantage in diligencing these deals.  

So, to seek alpha, turn off CNBC. Put down the Wall Street Journal. Or, chuckle-chuckle, tune out Washington. Entrepreneurial America has, and will continue to be, your best bet. And in the process of making a lot of money, you just make help change the world for the better. Enough said.


The Role of Outliers in Emerging Company Investing


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The world of successful startup and emerging company investing is one of outliers.  Winning big requires identifying the "needle in a haystack" company that becomes big and famous.  And  to do so while they are small and fledgling.  The biggest investing fortunes of our era have been made by the early investors in Google, in Amazon, in Apple, in The Body Shop, in Kinko's, and will be made in current high-flying startups like Digg, LinkedIn, Twitter, and Simply Hired, among others.

These companies are outliers.  They beat or are beating the statistics that show that over 90% of all new businesses don't make it one year, that 70% of those that remain don't make it 10 years, and that less than 2 out of 10 achieve exits that make money for their investors. 

Here is the rub, though.  Companies like The Body Shop and Kinkos, when they hit, are so incredibly wealth-producing that they more than make up for the significant majority of companies that do not get to profitable exits for themselves and their investors.  The central rule of startup and emerging company investing is that to win you MUST have one or a few BIG successes in your portfolio.   And by big success, we mean it in the context of Fidelity's famous Peter Lynch, as in a "10-bagger" -- or a return of more than 10x on your principal investment.

So how to get these winners in your portfolio? A heavy influence on my investment philosophy is Nassim Nicholas Taleb, and pecifically his groundbreaking economic and philosophical masterpiece, The Black Swan.  Taleb's 2 main theses as they apply to our investment space are as follows: 1) That all huge early-stage investment successes are, by their very nature, fundamentally unpredictable "outlier" events, and 2) through the cultivation of humilty in the face of this randomness does investment wisdom spring.

So a few cautionary notes. 
First, imbibe deeply the overwhelming evidence that nobody, not Bill Gates, not Steve Jobs, not Sergei Brin, not Jim Kramer, not Kleiner Perkins, not Sequoia Capital, not Genentech, not the sellers at AIG of collateralized debt obligations, not the Federal Reserve Chairman, and certainly not your friendly neighborhood financial advisor can predict the future with any true level of certainty.

Secondly, run, don't walk, away from those who purport that they can or have because this reveals them as being either naive or disingenuous, and usually both. The road to investment hell is paved by those who, through the simple law of averages, got lucky in predicting last month's price of gold, or of oil, or the Dow, or interest rates, or Las Vegas real estate, et al -- and then again, either naively or disingenuously, confused and/or promoted this luck with predictive ability. 
As Warren Buffett once famously noted, if there are a 1,000 stock pickers, the law of averages are such that, every year, 10 of them will show once-in-a-century return performance.  In short, take to heart that past performance is absolutely not indicative of future results and that big negative outlier events -- like the banking and real estate collapses of the past year -- can wipe out decades of investment return in just a few short months.

And to "get in the game" of startup and emerging company investing, approach it, as Taleb would say, with a "fractal" approach.  Expand your perspective beyond the usual investment suspects -- the Dow and big NASDAQ companies -- and look for the following qualities in your investment choices:  Companies with the aforementioned Peter Lynch "10-bagger" potential and ones which, because of the "micro" factors that determine their success, have return dynamics that are uncorrelated with the stock and bond markets as a whole.  Not a hard and fast rule, but the vast, vast majority of companies with these characteristics have high technology and intellectual property-based business models. 

Keep these few thoughts in mind and you will be head and shoulders above the average investor in doing the kind of deal-picking that puts a life-changing deal in your portfolio.

Naming Your New Company or Product


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I recently read a great blog post, from a company called The Name Inspector, about how to name your company or product. Whether your goal is to raise capital or gain the interest of partners or customers, the names of your company and products are critical.

In fact, when we first launched Growthink a decade ago, we started with the name BestBizPlan since we initially focused just on developing business plans. Realizing that we would expand beyond business planning, we changed the name to Growthink to reflect our desire and skill sets in helping entrepreneurs and business owners in growing their businesses via planning, capital raising, marketing, strategy and more.

The Growthink name has a better connotation and helps client, prospective clients, partners and employees better understand and relate to our mission. While I cannot attribute our company's success solely to our name, it certainly has helped us.

So, here are the ten ways for you to create great company (and/or product) names as suggested by The Name Inspector:

1. Use Real Words: These are names that are simply repurposed words. (e.g., Adobe, Amazon, Fox, Yelp)

This category also includes misspelled words (e.g., Digg (dig), flickr (flicker)) and foreign words (e.g., Vox (Latin 'voice').

2. Use Compounds: These names consist of two words put together (e.g., Firefox, Facebook).

3. Phrases: These names follow normal rules for combining words (but are not compounds) (e.g., MySpace, StumbleUpon).

4. Use Blends: Blended names have two parts, at least one of which can be recognized as a part of a real word (e.g., Netscape (net + landscape); Wikipedia (wiki + encyclopedia)).

5. Use Tweaked Words: Tweaked word names are derived from words that have been slightly changed in pronunciation and spelling - commonly derived from adding or replacing a letter (e.g., ebay, iTunes).

6. Use Affixed Words: These are unique names that result from taking a real word and adding a suffix or prefix (e.g., Friendster, Omnidrive).

7. Use Made Up or Obscure Origin Words: These names are generally short names that are either completely made up, or, since their origins are so obscure, they may as well have been made up (e.g., Bebo, Plaxo).

8. Use Puns: Puns are names that modify words/phrases to suggest a different meaning (e.g., Farecast (forecast, fore -> fare), Writely (rightly, right -> write))

9. Use People's Names: using a general name or the name from a personal connection (e.g., Ning (a Chinese name), Wendy's (founder Dave Thomas' daughter's nickname)).

10. Use Initials and Acronyms: names derived from the first letter of each word in the longer, more official name (e.g., AOL (America Online), FIM (Fox Interactive Media)).


The American Reinvestment and Recovery Act of 2009


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This is the first article in our “Bottom Line” series focused on the $787 billion plan, where we analyze the spending bill's significance as a stimulus for U.S. entrepreneurs and emerging businesses.

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The figures are mind boggling.  A few billion dollars there, $50 billion there.  And how about the $165 million from the Troubled Asset Relief Program (TARP) that made its way to the executives of bailed-out AIG in the form of bonuses?  The unprecedented amount of public funds being spent to save and spur the economy through recent programs certainly includes a bunch of life vests for those failed companies that are “too big to fail,” but what about for the Entrepreneurial Economy?  


The American Entrepreneurial Economy includes 550,000 new businesses started every month.  It includes the emerging market:  the 2.2 million firms in the US with between 5 and 100 employees.   These are almost all private companies and most are less than 15 years old.   According to the US Small Business Administration (SBA), small businesses (those with fewer than 500 employees) make up 99.7% of all US businesses, account for 50 percent of the gross national product and create between 60 and 80% of the net new jobs each year.  Entrepreneurs are confident – often stubborn – risk takers who take on personal debt so they can follow their dreams of launching new businesses.  They collectively make up the American business engine that largely drives innovation, invents new products, and creates new jobs.   

We at Growthink work with these companies and business owners everyday and have assisted almost 2,000 in the past 10 years.  Due to their impact on the US economy, we sure expect to see incentives for entrepreneurial companies in the stimulus plan, in addition to the $200 billion doled out to some of the largest financial institutions in the US. As a country, we don’t need to “bail out” emerging businesses in the sectors that will drive the economy – young firms that are working to improve healthcare, producing energy efficient products and developing environmentally-friendly pesticides – we need to spur them on.

We are following the distribution of stimulus funding closely.  This means we’ve had to spend countless hours trying to figure out what’s in the plan and who’s getting what – the plan is about eight inches thick and leaves most of the funding details to the various governmental agencies that oversee specific sectors.  It’s been no easy task.  Just because the federal government is giving away an unprecedented amount of money in a record amount of time to save the economy doesn’t mean that it’s not being given away by the same bureaucratic system that existed before the stimulus plan.

In our “Bottom Line” series on the stimulus plan, we’ll focus on just that:  What’s the plan's bottom line for the Entrepreneurial Economy?  During the Series, we’ll provide concise descriptions of the business opportunities in various sectors and provide insight into how to receive funding.   We’ll also provide honest feedback on the results of the program from the perspective of the entrepreneurial community.  

So far, we’ve come across reasons to be optimistic.  The plan includes programs for entrepreneurial sectors and includes promising opportunities for innovative, growth-oriented firms, such as:

  • More than $60 billion dollars in funding, grants and tax credits to promote energy efficient and renewable energy programs and products;
  • $7 billion to extend broadband services to underserved communities;
  • A focus on alternative sources of energy;
  • Almost $20 billion for healthcare technology;
  • $1 billion for a “Health & Wellness” Fund;
  • More than $15 billion for research and upgrading research facilities focused on key areas of innovation, such as climate change, biofuels, disease control and prevention, and technology innovation; and:
  • Enhanced and streamlined programs through the SBA.  


We’ve also seen some early outcomes that give us cause for concern.  Of course, there were those AIG bonuses, luxurious private jets flown by executives from failing automakers to beg Congress for bail-out money, and the hundreds of billions of dollars given to the firms that helped get us in this mess in the first place.  And hucksters, of course, have recently populated email spam folders with promises of stimulus funding in return for credit card information. 

But we’ve also seen frustration on the front lines when we’ve spoken and worked directly with leaders of promising businesses in those targeted sectors.   How do I apply for the funding?  Am I eligible?  Where do I even find the information?

Of course, part of the confusion and a lack of clear information are inevitable – current systems to notify businesses of the methods to access these funds are inadequate for such a surge in new programs.  But the confusion is largely due to the same complaints that start-ups and small businesses have expressed about government “support” programs for decades:  It’s difficult to even figure out what’s available and how to apply for the resources, and continues to be in the age of the Internet.  

During the next two weeks, we will provide those answers on a sector by sector basis.  No fluff, no platitudes, just the Bottom Line for your business.    

 

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The next article in our Bottom Line Series will focus on stimulus funds available for entrepreneurial companies in the healthcare sector.  


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"Business Plan
SHORT-CUT"

If you want to raise capital, then you need a professional business plan. This video shows you how to finish your business plan in 1 day.

CLICK HERE
to watch the video.

"The TRUTH About
Venture Capital"

Most entrepreneurs fail to raise venture capital because they make a really BIG mistake when approaching investors. And on the other hand, the entrepreneurs who get funding all have one thing in common. What makes the difference?

CLICK HERE
to watch the video.

"Brand NEW
Money Source?"

The Internet has created great opportunities for entrepreneurs. Most recently, a new online funding phenomenon allows you to quickly raise money to start your business.

CLICK HERE
to watch the video.

"Old-School Leadership
is DEAD"

"Barking orders" and other forms of intimidating followers to get things done just doesn't work any more. So how do you lead your company to success in the 21st century?

CLICK HERE
to watch the video.

Blog Authors

Jay Turo

Dave Lavinsky