Do you believe in the saying, “You reap what you sow?” This old adage may mean nothing to other people but it is definitely one of the best dogmas any business owner could ever have.
Of course, it is a well-known fact that no business can start making money without investing some money first. You need to invest money on securing licenses. You need money to establish your business, from the planning down to the last details. And even if your business is already established in the market, still, you will need money to invest in your new product or in developing a new technology.
In fact, in the United States alone, statistical reports show that most businesses spend more than $100 million just to build up and introduce a new “consumer product” or more than $200 million to embark on and launch a new “pharmaceutical product.”
Now you know why businesses revolve on money. There can be no other tool that is as important as money in the business world.
Hence, if you do not have all these money to start and develop your business, you can never see your business grow. The saddest part is that you can never achieve financial stability.
So if you are having some problems in funding your new business idea or product expansion concept, it is best to find good financial sources.
Generally, most business owners will run to their family, relatives, or friends to get financial backups or investments. Others would turn to financial institutions such as banks or lending companies.
As much as these things can help you fund your new project, these sources are inadequate, or they can charge you with higher interest rates, which, in turn, will put your business on a financial risk if neglected.
For this reason, additional financial help is necessary. Why don’t you try having the government fund your invention? Government grants are one of the most common and efficient financial alternatives you can get. Even if it needs a lot of documents or paper works, the support you will obtain is still beneficial on your part.
Why the Government?
The government is willing to support those businesses that continuously evolve into a more progressive industry by developing and entertaining new industrial and technological concepts. The government seeks to help those businesses that, in spite of the limited resources, can still develop innovations and launch them in the market without hesitation.
By doing so, the government believes that ideas like these can, likewise, help them develop and expand the country’s economy. That is why the government is willing to help those kinds of businesses.
In the United States, the government devotes approximately $70 billion yearly in subsidizing development and research projects. Both the state and federal government are very dedicated to promote and cultivate inventive projects in the country.
For this reason, the U.S. government had created various assistance and programs to finance the growth of “new technologies.”
Among the many government programs, the Small Business Innovation Research or the SBIR is one of the most commonly employed services because it mainly focuses on the small businesses.
Through the government’s Small Business Innovation Research Program, small businesses are encouraged to delve into their technological capabilities.
With this program, the government supplies the enticement to small businesses to make money on their moneymaking schemes. In doing so, competent small businesses become part of the country’s research and development (R&D) field. Thus, state-of-the-art improvement or invention is motivated.
The government, likewise, benefits from these innovations as it gains industrial and consumerist atmosphere. This happens when the government is able to reach its particular development and research needs.
Through this program, the government grants financial support as much as $1 billion in a year to small business in the country.
Although the SBIR is a general funding program of the government, each department in the U.S. government has their own SBIR program. The allocated amount may also vary depending on the allotted budget of the funding agency.
For example, the Department of Defense has a specific Small Business Innovation Research Program specifically dedicated to small businesses that have R&D projects. Most of the small businesses that they support are those that have R&D projects catered to the needs of the Department of Defense. The Department of Defense’ can allocate up to $850,000 annually for the early-phase R&D.
If you are a small business with an emerging technological research and development project, make your business plans now and seek the help of the government for additional financial support. Protect, preserve, and boost your invention through the government’s funding R&D programs such as the SBIR.