It is a known fact that no business can survive without access to funds. From starting the business to operating its day-to-day affairs, getting the right human resources on board, and even taking strategic actions. Money is just one resource that a business owner cannot do without.
There are several ways that entrepreneurs raise funds for their business ideas. Some include using personal funds, loans from friends and family, loans from banks, venture capitals, angel investors or business incubators, etc.
While all of these are great, a fantastic source of finance for any business is getting a grant. Grants are monies given to a person, business, government, or other organization that is designated for a specific purpose and which does not need to be repaid.
As a result of the fact that it doesn’t need to be repaid, it is highly competitive as many businesses opt for it. They are typically presented with a focus on specific industries. So, just as there are grants for agricultural businesses, there are grants for tech-based businesses. Here’s a brief rundown of how to get grants for your business.
How to find a grant for your business
Although there are different types of grants available to businesses across the globe, grants are not infinite nor all too easy to acquire. Grants are also not extremely difficult to obtain with the knowledge of the right ways to source for them and how to apply for them given their specific criteria and requirement.
One of the easiest ways to find grants is through websites like ‘Opportunity Desk’ that collate grants, scholarships, contests, and more from different parts of the world. You can also specifically research grants available for your industry. The platforms will detail the steps to be taken, deadline, as well as other requirements and you, can apply for your small business.
The Application Process
Since grants are usually highly competitive, having a strategy will give an entrepreneur an upper hand. This involves finding out all the necessary information about it and positioning your organization for the opportunity. Depending on the specific requirement of the chosen grant, a grant proposal which is a document that explains the applicant’s request for the grant may be required.
It should communicate the business project and the budget for which funds from the grant are required to help the business achieve targeted success and in the long run, realize the grant objective if possible. Sample requirements for a typical grant proposal include the following:
A Cover Letter:
This introduces the project to the grantor. It also defines the roadmap, the reason for the grant application, and what goal the business seeks to realize through it.
A Project Summary:
This usually should not be longer than a page. It is typically a little more advanced than the cover letter, and it should provide a brief summary of the business, its mission and vision statement, and how the grant will help fulfill this mission.
Need Statement:
This is section usually provides an amplified layout of the problem the entrepreneur is trying to solve and the proposed business methodology or proffered solution being offered by the business.
Goals and Objective:
This section typically shows the desired outcome of the project if the grant is given. This goal should be measurable, and within a specific time frame, it should also contain what business will achieve with the funds.
Action Plan:
This describes the step-by-step activity that will be carried out to achieve efficiency and realize the goal of the project.
Project Evaluation:
This section explains the plans with regard to how the entrepreneur will evaluate the project to ensure that the funds provided will be effectively utilized.
The Budget:
This section will provide a detailed analysis of how the funds will be used to achieve the set goal. The amount should be realistic.
It is pertinent to note that various grant organisations have their various requirements, and they span across various industries. For example, requirements for grants in the Arts will most certainly be different from those in Science. What’s important is that all submission instructions are adhered to. Although most grants are applied for online, there is a need to fill out all the necessary documents in the application form and submit the application before the stated deadline.
Grants are given to organisations or businesses who the grantor perceives will be able to add value and achieve the desired result. The solution proffered must be evidence-based. Having a good plan, excellent project design and a good proposal will make an applicant stand out among the competition. The grantor’s interest is usually to encourage businesses to do better but often requires selected businesses to have the right foundation for success.