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  1. #1

    Goverment funding for a new business

    Hello, i am a partner or a small web hosting company trying to get off the ground. The thing is, we both have full time jobs that we need to live and can't put enough time into our business because of it.

    We live in Canada and i'm just wondering if anyone here was in the same situation, and if so what was the outcome? We are thinking we might be able to get funding from the goverment to pay our salaries until we can afford to pay ourselves but we're not sure how to go about it. If anyone has and suggestions please post, i know we could have a good thing going here if we only had the time.

    Thanks / / : Interested?

  2. #2
    Government i mean, it's early hehe. / / : Interested?

  3. #3
    Join Date
    Jul 2002
    i duno how things work in canada, but something like that would be extremely difficult here in the states. that is unless u have some major connections.

  4. #4
    Join Date
    Jul 2002
    wow wouldn't it be nice if you coud go to the government and say"hey guys, um listen I'm starting this business, and well it may not work ya see, but then maybe it will, the problem is I wont know until I try and of course initially I wont be getting many sales, because I'm an unknown quantity, so what I was thinking, if it's okay with you, um could you see your way clear to, just pay my wages for bit? I mean I'll pay it back, one I promise! All you gotta do is give me some money while I try this experiment out, you know just enough to live on, pay bills etc. Oh and um if it's okay don't tell anyone else because then everyone would come to you and ask for the same thing, so lets just keep it betwwen us huh?"

    The answer I would mostly get is "yes dear, here is the unemployment forms you need to fill out"

    No offense, but why on earth would the government fund you while you started a business? Sure through dedicated schemes and incentives, where you have to apply and undergo interviews and provide business plans and revenue projections etc. You will probably get a business mentor of some sort as well. But just off the cuff, why would they pay you a wage so you can start a business? If that Canadian government does that, Canada is about to experience an immigration boom

  5. #5
    "where you have to apply and undergo interviews and provide business plans and revenue projections etc."

    That is what we want to do. Reseller, there is money available for this in Canada and i am wondering if anyone here has received any.

    I have a full time job (where i am posting this from) but am going part time in a week or 2 so i can spend more time on our business. If i can get some funding, even if it's little and has to be paid back, i could use it and would have no problem paying it back once we get going.

    Any Canadian web hosts have some suggestions?

    Thanks! / / : Interested?

  6. #6
    Join Date
    Nov 2001
    Toronto, Canada
    I have my business in Canada, but I didn't try to get any help from the government, but what I heard the government helps you out to start your small business and if you can prove that your business project will be working and its going to be pofitable, also if you provide a full study of you project I think you will some money from govenment, but if you got a lawer he can helps you out with this.
    BTW which city you are in?
    Good Luck

  7. #7
    Join Date
    May 2002
    Edmonton, Canada

    Depends on your age. When I'd started my first business 8 years ago I was just under 21 and able to receive government funding if I'd wanted. Basically they provide you with anywhere from 10-150k after scrutinizing your business plan.

    Be very-very careful with the Gov't getting involved. The second you have a major partner, hidden or not, you lose 100% control of your business. I believe Gov't money is a no interest loan for 5 afters after which you start paying, could very well be they sell your loan to a bank at that point.

    Hope this helps,


  8. #8
    Thanks for the info guys.

    I know that with some help we can come up with a decent plan to prove that we will be profitable so i guess it's time to get moving on it. Thank's for the good wishes, they go right back to you

    Just curious, if you don't mind me asking, how many customer's do you have? If you are making a living from your companies, how long did it take to get to that point?

    Thanks again!

    (host911 i am from NS) / / : Interested?

  9. #9
    Join Date
    Nov 2001
    This reminds me of those late night infomercials where they say you can fund any idea you want with little or no paper work simply by asking Uncle Sam. If it were that simple, the government would be bankrupt a long time ago as everyone would be taking them for all they are worth.

    "Joe Billy got 600,000 dollars to start a Barber Shop in New York." Image how much you can get!
    Dan Ushman
    Co-founder & CMO
    SingleHop, Inc.

  10. #10
    Join Date
    Jul 2002
    Isn’t the government already owing a few billion?
    AIM: Chris24HS
    24 Host, Coming Soon….

  11. #11
    If you are starting up a reselling business how much startup capital do you really need? It can't be all that much since it is usually a monthly fee and then you need to pay xx for each client, which you charge them more than that anyway. It isn't like you need to buy all your servers and pay huge connection fees for your business.

    So what do you need, a grand or two? If that?

    I wouldn't bother with the government for small amounts of money anyway. I would first maybe just see about a small loan at a local bank, you will find a better chance at getting some money that way, especially dealing with smaller amounts IMO.

  12. #12
    Join Date
    Oct 2001

    First off, welcome to the biz

    2ndly, I know there are hosts here dont do this as their full time job. You dont need to have a TONE of free time to get a hosting company off the ground.

    My suggestion is go with Dialtone or any other company that offers RELIABLE support 24/7 and monitoring - which is the most important - they will watch your server 24/7 and fix it when it goes down (costs some $$ though)

    To start it, all you need is the first months fee or so and start getting customers. It helps to offer some free hosting to get started (and build some nice clients). However, as a side job, there is no reason why it cant bring in 1,500-3000/mo over time, then it goes to a full time job

    Point is, you dont need a load of cash to start
    Avi Brender
    Reliable Web Hosting by Elite Hosts, Inc
    CPANEL Reseller Hosting - Fantastico - Rvskins - ClientExec

  13. #13
    Join Date
    May 2002
    I'm with Jeremy -- you really don't need that much money to get off the ground. I wouldn't go through the trouble of getting the government involved.
    Jay » [email protected] • AIM » FDrive Support
    Front Drive™ » Advanced multi-domain solutions

  14. #14
    Government funding for a startup hosting biz? I seriously doubt that will happen

    - Jubei...

  15. #15
    Originally posted by Jubei
    Government funding for a startup hosting biz? I seriously doubt that will happen

    - Jubei...
    It does happen in Australia! Probably because our government doesn't waste taxpayers money propping up unprofitable farm production.

  16. #16

    They do exist

    We are in a simliar situation as yourselves it depends on the province you are in. There are E-commerce Grants and funding for startup internet businesses there are lots of if's and but's and YOU have to find the scheme that suits you.

    We are still looking and trying to find funding, however the red tape almost seems a waste of time....

    The Government does put alot of money aside for these E-commerce grants (if it remember it is close to $60million CAD However the people who see this money i fear are not those in need.

    If you have any luck please let us know.... sorry i cannot be of more help...


  17. #17
    Thanks for all the info and the welcome g[(uy,al)]s.

    I notice that some people here don't know that there IS money set aside for starting a businesses here in Canada. Just so you know, it benifits the govt by creating jobs in the long run and keeps the unemployment rate down. I don't assume that it is known to everyone though so i understand if you don't.

    It's not a reselling biz, we have a dedicated server and our overhead is pretty low (no office, 1 dedicated server and a phone bill). I will need the money to pay my bills (food, rent, dsl, etc) since I will be working part time at my current job soon. We might be able to save our pennies (my wife works full time) until the company gets off the ground. I'd rather not get funding from the govt and think i'll try to avoid it for now but i need to live so it's good to know that the money is there if it's needed.

    Thanks again, i am so glad that i found this forum. / / : Interested?

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