standing eight count
I recently submitted a business plan for a small business idea that I've been kicking around for a while to a seemingly legitimate not-for-profit grant organization. I had already created a solid business plan months prior when attempting to go to the bank for a loan, but was denied. After searching Government links for alternatives, and not finding any, I was thrilled to find a organization that seemed legitimately interested in helping potential entrepreneurs get their idea off the ground.
The process seemed fair enough. I submitted an application and was then linked up with someone who would offer me advice in developing my plan. It turned out the 'advice' over the phone was free, but that they also offered consulting services to 'fine tune' my plan...for a fee. A pretty hefty fee. I declined, as I was very confident in the plan I had already developed, and would only really need to add a few more details to it.
After weeks of hard work, and nearly doubling the length of my plan, I submitted it by the due date, and awaited word from them.
I immediately got a letter, dated the same day as my submission, that in order to qualify for the grant, I would need to submit a number or due diligence items to prove 'matching funds' and my 'preparedness'. This seemed fine, if a bit discouraging, as once again, I was being confronted with more red tape and obstacles where none had previously been visible. However the real red flag was the request for a credit bureau report. What would my personal finances have to do with my business idea? If I could prove I had the money set aside to show 'matching funds' and was willing to promise said funds would be used for the business, why would they need a credit check?
Suddenly, my excitement and optimism was replaced with a sinking feeling of suspicion and apprehension. I'm not comfortable sharing personal information in general, at least when it comes to numbers and other 'real' information. A blog is one thing. Sending my financial records over the internet to a organization that I've never interacted with outside of a few e-mails and a phone call is another.
So with the deadline fast approaching, I decided to continue on with the due diligence items. I secured a considerable 'loan' from a family member to act as 'matching funds'. I drafted a signed undertaking committing said funds to the business, and even contacted my financial adviser at the bank to secure a letter stating I was indeed in possession of adequate funds.
But I wasn't ready to commit to the credit check.
Instead I did a little digging.
I did not like what I found.
Turns out, there are many, many complaints from former applicants who feel as if they were duped by, essentially, a scam. We're talking well over 50. Some of my own suspicions were mirrored in some of the comments. It seems, the deck is truly stacked in the houses favour in this instance (as it usually is). Suffice it to say, with only a few days before the deadline to submit my due diligence info, I have come to the conclusion that there is probably a 0% chance I will be awarded the grant. A part of me is curious, having already submitted my plan, to see what their response will be should I submit most of the due diligence items...but there is no way I am sharing my personal information with them.
So, it seems, my dream (one of many) will have to remain just that. I am extremely proud of the plan I put together, and in all honesty, this organizations guidelines did help me improve on the plan I already had. So there's that. But ultimately, to come this far, only to learn it's a dead end so close to the finish is extremely disappointing...and further cements my feeling that the little guy really is up against it when it comes to business. I'm not going to let this kill the dream...but consider this one mighty body blow from the big, bad enemy to this plucky underdog.
The process seemed fair enough. I submitted an application and was then linked up with someone who would offer me advice in developing my plan. It turned out the 'advice' over the phone was free, but that they also offered consulting services to 'fine tune' my plan...for a fee. A pretty hefty fee. I declined, as I was very confident in the plan I had already developed, and would only really need to add a few more details to it.
After weeks of hard work, and nearly doubling the length of my plan, I submitted it by the due date, and awaited word from them.
I immediately got a letter, dated the same day as my submission, that in order to qualify for the grant, I would need to submit a number or due diligence items to prove 'matching funds' and my 'preparedness'. This seemed fine, if a bit discouraging, as once again, I was being confronted with more red tape and obstacles where none had previously been visible. However the real red flag was the request for a credit bureau report. What would my personal finances have to do with my business idea? If I could prove I had the money set aside to show 'matching funds' and was willing to promise said funds would be used for the business, why would they need a credit check?
Suddenly, my excitement and optimism was replaced with a sinking feeling of suspicion and apprehension. I'm not comfortable sharing personal information in general, at least when it comes to numbers and other 'real' information. A blog is one thing. Sending my financial records over the internet to a organization that I've never interacted with outside of a few e-mails and a phone call is another.
So with the deadline fast approaching, I decided to continue on with the due diligence items. I secured a considerable 'loan' from a family member to act as 'matching funds'. I drafted a signed undertaking committing said funds to the business, and even contacted my financial adviser at the bank to secure a letter stating I was indeed in possession of adequate funds.
But I wasn't ready to commit to the credit check.
Instead I did a little digging.
I did not like what I found.
Turns out, there are many, many complaints from former applicants who feel as if they were duped by, essentially, a scam. We're talking well over 50. Some of my own suspicions were mirrored in some of the comments. It seems, the deck is truly stacked in the houses favour in this instance (as it usually is). Suffice it to say, with only a few days before the deadline to submit my due diligence info, I have come to the conclusion that there is probably a 0% chance I will be awarded the grant. A part of me is curious, having already submitted my plan, to see what their response will be should I submit most of the due diligence items...but there is no way I am sharing my personal information with them.
So, it seems, my dream (one of many) will have to remain just that. I am extremely proud of the plan I put together, and in all honesty, this organizations guidelines did help me improve on the plan I already had. So there's that. But ultimately, to come this far, only to learn it's a dead end so close to the finish is extremely disappointing...and further cements my feeling that the little guy really is up against it when it comes to business. I'm not going to let this kill the dream...but consider this one mighty body blow from the big, bad enemy to this plucky underdog.
posted by neil at 3:39 AM
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