Well,
If you want to start your own small business, and right off the bat have a contract to work on, try the Small Business Innovative Research (SBIR) grant program. They have all kinds of good stuff.
http://www.sbirworld.com (click search at the top and use the second search window on the page to search by key word)
You can also check out the Foundation Center which provides links to all kinds of folks who provide grants:
http://www.fdncenter.org
Then of course, there is always the military. You can go to a site like Fedbizopps.gov and look for BAAs (broad agency announcements) which has all kinds of things. Search by key words of skills you have and see what pops up. BAAs usually have a long response date (i.e. accepting application until 2006 and other such stuff) - you send them an interesting proposal related to their topic of interest and away you go if you get approval…
None of these are ‘free’ per se because you have to invest your time to write a good proposal of what you hope to accomplish and how you will go about it, plus come up with a budget that justifies how you will spend their money. If it was that easy…everyone would be doing it, right? Writing these proposals is no easy task in most cases.
As far as who you have to convince, well that is usually a committee that evaluates your proposal, made up of staff from the agency/ organization that is giving out the money. Often times they’ll even tell you what their evaluation criteria are (i.e. proposals are rated on a scale of 100 with 20 points for idea, 10 points for budget…etc.) Write the proposal around the evaluation criteria focusing more attention on those areas where more points are given.
That’s about it. If you go to your local library, just like they have books on writing a ‘winning’ resume, they will have books on writing winning grants. For that matter, the reference desk of many larger libraries (especially in universities) will have something like a ‘grantmakers directory’ which will provide you an endless list of grantmaking bodies who dole out money based on topic.
My advise, go for something obscure that you are very good at because if it’s generic every other Tom, Dick, and Harry will have also submitted a proposal which just creates more competition.
I should add, by the way, that if you are any kind of minority (woman and/or veteren and/or non-caucasian) the government LOVES that and will preferentially look at your application over others. You’ll already have an advantage right off the bat anyway because if you go into business for yourself, you are automatically a ‘small business’ which they also love to hear…