Top 10 Ways to Get LGBT Grants for Small Businesses
Starting your own small business is challenging enough. But getting an SME running for an LGBTQ or gender queer entrepreneur can be a momentous challenge.
This is because of the ongoing discrimination faced by the LGBT community and how microaggressions in the lending and business sphere in general may hamper one’s opportunities.
Challenges of LGBTQ Entrepreneurs
Gender
This is probably one of the first challenges which any business owner can face. According to StartOut lesbians are less likely to get funding on the basis of sex alone.
Race
In 2020, the most affected were African American business owners. Female black entrepreneurs have it even harder to secure grants. The number of Black women business owners has grown since 2007, yet most venture capital grants are purportedly given to white male applicants.
This is why institutions such as the National LGBTQ Chamber of Commerce stand to create more opportunities for minority groups in the gender queer category.
In general, lesser opportunities for the LGBT can lead to homelessness and poverty for many of it’s members.
That said, here are some tips which members of the lesbian, gay, bisexual, and transgender queer community can use to improve their chances of securing funding for their own SME’s.
10 Tips to Get LGBT Business Grants
1. Microlenders
There are organizations which offer microloans for small businesses. These are usually given to minority-owned enterprises. AO fund is an example of a grant giving institution. These have loans which start at $300 and they focus on owners who may not have the opportunity to use traditional credit rates.
2. Angel Investors
You may also turn to angel investors these are private investors or seed investors who may help out small business owners if they are not yet ready to receive grants from traditional funding institutions.
3. StartOut
StartOut is a nonprofit organization for many entrepreneurs. And it offers many resources including investors. Premium membership, however is required to increase your outreach and further advertise your business plans to interested prospects.
StartOut also provides tutorials to it’s clients and it helps LGBT business owners find access to capital.
4. Online Lenders
There are also plenty of online lenders these days whose loans are generally faster than relying on government grants.
Take a look at reputable companies like OnDeck and find out if any of their packages are appealing. Online loans are fantastic if you are operating in a locale which is generally not LGBT friendly.
5. Get NGLCC Certified
One of the many ways to impress lenders is to get secure by the NGLCC. It’s a great idea to obtain the extra merits which go with the NGLCC.
You can also network and explore with other fellow business owners and gender queer members and through this, your certification shows that your business is solvent and ready to start.
6. Join your local LGBT business chamber
Standing together with your local business chamber gives you opportunities to fast track your connections with financial institutions, and it also gives you numerous educational opportunities.
The NGLCC has over 50 affiliate chambers in the United States. Find out how you can get involved and you can start your journey towards authenticating your small medium organization.
7. Join others in conferences
It’s a great idea to join small business and startup conferences. While you can’t expect to rake in any capital right then and there, you may open up to new ideas and new sustainable ways to get started with your venture.
You can never market yourself enough. So attending these conferences and programs can serve a profitable purpose in your access to gaining LGBT capital.
8. Crowd funding
Crowd funding can be an excellent option if you have a project which can be used as a service or an end user product for a group of people.
If you’re crowd funding a restaurant for example, the people who shell out money can be considered incorporators and are immediately VIP customers.
9. Request money from friends
This may seem unconventional if you’re thinking about a loan, but if you have a group of supportive friends and family members, why don’t you ask them to float you a grant!
This is way better because they may come up with zero interest agreements but are privileged to certain perks once your small business gets up and running.
10. Fund it using your own income
It’s practical if you can come up with a way of saving up yourself. You fund the initial startup and acquire the resources and tools for your small business yourself.
If your company is supported mostly through your own savings, you are totally independent and it is within your full control on how you manage it once you start your practice.
How to Make the Most Out of your LGBT Business Grant
1. Income taxes must be reported
If you earn about $600 in income, you are required to file income taxes. You must file 1099-MISC if you are an independent contractor and you earn non-wage-based income and form 1040.
if you are earning as an independent contractor. You can avoid penalties from the IRS by staying on top of taxes and you effectively legitimize your LGBT business by observing best practices.
Read - How you can prepare for tax season 2022
2. Online marketing and community support are vital
You must be active in your online marketing and your general marketing strategies. A business can only gain solvency and profitability if it is actively supported within the community. Prior to launch and once your business has taken off, you must ensure that you actively reach out and seek support.
3. Create a payroll period
It's good to standardize your payroll. Create a payroll practice and use it. If you're hiring contractual workers, you may pay them weekly. If you have regular employees, then you can compensate them biweekly. Pay periods depend on the pay grade of your employees and the intervals you choose.
4. Generate pay stubs
If you're self-employed you must create a pay stub. It serves as your invoice. And you also need to create pay stubs for employees.
There are different rules per state whether you have to print pay stubs or not, but in general, it's a great practice to record your income so that you can stay on top of taxes.
CONCLUSION
Members of the LGBT community or other minority groups may not be as easy as those who are purportedly privileged.
Taking the steps however, to networking yourself and collaborating with like minded people are small business practices which everyone can benefit from. Use it to leverage the power of your business and stay active with your marketing together
