It is no wonder that cash flow problems start haunting entrepreneurs as the economy turns on its head.
A grant will bring much-needed cash relief when you have just begun to grow your business. Unlike loans, grants offer payback-free benefits, making it a very attractive option for most small business owners. However, the process is really competitive so knowing how to apply is the way to stand out from such a procedure.
Let’s break it down on how to find the right grants, write a successful application, and what your chance is of being accepted.
1. Know What Grants Are
Grants are generally financial resources offered by government agencies, nonprofits, or private organizations to help finance some business project. Grants are not loans because they never have to be repaid. What this also means is that there are usually conditions attached. The business has to target specific types of customers to deliver sustainable outcomes or operate in a way that helps an underrepresented community.
Once you understand the difference between a grant and a loan, you will know what to choose. Loans are all borrowings that have to be repaid with interest, whereas grants are like free money there is a condition associated with those monies.
2. Find out if you qualify
Not all businesses are qualified to be considered for all grants. Indeed, most available grants target specific industries, demographics, or stages of business operations. For example, there are grants for women entrepreneurs, companies owned by minority groups, technology startups, or businesses concerned with the environment.
Evaluate yourself as to whether you qualify by looking into the criteria set by each grant. Some usual factors that qualify you are as follows:
- Employee headcounts or dollars in annual revenues
- Industry type or kind of business
- Geographical area
- Business owners demographics like women, veterans or minority entrepreneurs
3. Identify Available Grants
Identify which grants are currently available and for whom
In search of the most suitable grant for your business, it may become a pretty laborious process, a lengthy process requiring vast amounts of research. In short, you need to scan through many grants to then figure out which ones you qualify to apply for. Grants are divided more into criteria, such as specific orientation to certain industries or regions or types of business.
Understand the needs of each grant: don’t rush and think carefully which is the best fit for your business. This also prevents wasting time by applying for funding if it does not suit the business. Better researchability leads to a higher possibility of finding the perfect match, which again builds potential success.
4. Customize an Application for the Grant
Once you’ve identified a grant you think would apply to your project, it’s time to pen an attractive application that matches the intent of the grant. As a way of creating a rather successful application, follow these tips:
- Follow Instructions: Everybody’s grant has its own submittal requirements. If not followed to the letter, you will be simply disqualified. Ensure you provide all documentation requested and answer all queries as much as you would require.
Discuss your goals for the business-Parents want to be able to understand how their money would be going toward your business. Be specific about how grant money will be applied-be it towards expansion of product lines, hiring employees, or trying to get the word out about your business. - Tell Your Unique Story: If you are a woman-owned business or an emerging company in a niche, use your unique story to connect with the reviewers of the grant. Authenticity and passion in an application make it memorable.
- Provide Evidence of Supporting Data: Back up claims that you make with data-ideally growth in revenue, customers who will speak positively of the business, or some form of market research. The evidence you use to support your business sustains the possibility that you have an investment-worth business proposition.
5. Provide a Viable Business Plan
A sound business plan can be in order while filling out the grant application. This will demonstrate to the grant provider that you are serious about your business and have a clearly mapped out roadmap for how it will grow. If one hasn’t been formulated as yet, now is the time.
Your business plan will not only serve you in grant applications, but it will also serve the rest of your life in securing future funding and informing your overall business plan.
6. Hang in There and Don’t Throw in the Towel
Applying for a grant is competitive and normal with many rejection of applications. Don’t give up on it. Try harder and keep improving your application until you find what you are looking for-remember grants are for businesses that have specific goals.
Moreover, applying to various grants has a high possibility of helping you receive financing from them. Indeed, even small grants can make a difference if it is for your business at its early stages.
Conclusion
That your small business would be able to raise much-needed capital to carry out business operations without paying it back, mainly due to winning a grant. Proper research and an effective draft application coupled with not giving up will all work towards enhancing the chances of getting the grants. Focusing, being strategic, and availing of these opportunities to make entrepreneurial dreams a reality.