Accessing grants the right way could help small businesses get grants
Starting a small business can be daunting when there are insufficient funds. Some people have had to close down their businesses or sell them at a meager price to willing buyers simply because they lacked the funds to sustain their operations or did not have access to business grants. While many grants are available for every category of business, most entrepreneurs do not secure them for their businesses.
One of the excuses most business owners have for not getting grants is that they do not know how to access the right business grants. In this article, we will share what funders are looking for, how to position your business for grants, and how to secure grants among a pool of applicants.
What Are Business Grants
Before you can access business grants, you need to understand everything about business grants. Business grants are money obtained from individual donors, corporations, private foundations, and the government to support a project or an innovative idea. Some people refer to business grants as free money, which is true, but they require a great deal of effort and preparation to secure them.
Unlike business loans given to entrepreneurs by banks or the government, business grants are not to be paid back. They are freely given by funders to business owners who have proven themselves worthy of the money.
What Funders Look For In Small Businesses
A small business will get grants if it adds these things to its application
Funders don’t just give money to anyone with business ideas; rather, they look for credible businesses whose interest aligns with theirs. Your funders’ interest must first align with your business objectives to be considered for business grants. Therefore, they only offer grants to businesses that provide solutions to specific problems and have a positive impact on society.
Funders for small businesses also consider the authenticity of any business to determine whether it is legitimate. Additionally, they verify that the business is registered, has a clear plan and structure, and has audited financial accounts. However, the latter depends on the type of grants the funders are offering. The most important thing is to have a credible business that funders can trust with their grants because no one wants to invest in a non-existent business.
How To Properly Position Your Business For Grants
Having understood what business grants are and the things funders want to see before offering grants. Here is how to stand a chance of getting grants among a pool of other business grant applicants.
1. Register Your Business
The first step is to get your business registered with the Corporate Affairs Commission (CAC). You don’t have to wait until your business gets big or employs ten staff before you can register. Once you have registered your business under CAC, you’ll receive a certificate of incorporation, a status report, and a Tax Identification Number (TIN). You must note that while registering your business, your bank account should be in your business name. Do not make the mistake of adding your personal bank account while registering.
2. Have a Sound Business Plan
A business plan is a document that has the organizational overview of your business, what you do, who your customers are, how you’ll make money, and the solutions you provide. Funders want to see the way you conduct your business if you have one, and if you don’t, they want to see how you intend to run your business. So, develop a feasible business plan that funders will find attractive.
3. Have Clear Financial Records
Once funders notice any financial discrepancies in your financial records, there is a low probability of securing their business grants. Therefore, you must ensure that all your financial records, bank statements, and audit reports (if available) are clear of any anomalies or irregularities. Even if you’re just starting a business, you must let the funders know that the grants will be used judiciously for the intended purpose.
4. Have a Pitch Deck or Executive Summary
A pitch deck is a couple of slides that show what you do and how you do it, while an executive summary is a single-page overview of your business proposal. I understand that this can be a lot to take in, especially if this is your first time hearing things like this. Not to worry, there are enhanced AI tools like Applai that you can maximize to put together a beautiful pitch deck or executive summary for your business.
How To Secure Business Grants From Over A Thousand Applicants
Applying for business grants with the right tips gives you a chance above other applicants
The same way you’re trying to secure business grants to start or scale your business is the exact thing other business owners are doing. However, you have to be much more prepared and be two steps ahead of others in your preparation. Here are some tips you need to know if you want to stand the chance of winning grants.
1. Conduct Your Research Properly
For every grant opportunity, there are eligibility criteria, i.e, the qualifications to apply for the grants. Therefore, the first thing is to painstakingly read through the grant application criteria to determine whether you’re qualified or not. If you’re qualified, check the application deadline to know how much time you have.
Also, research the funders of the grants, understand their aims and objectives, aspects of interest, and check if they have previously offered business grants to similar businesses in your country. If they have a website or a Social Media presence, check their information sessions and posts to discover more about them.
2. Prepare Your Documents
This right here is where many business owners get discouraged and quit their grant application because they don’t have all the required documents. Here are the major recurring documents that most grant applications require from their applicants: business registration certificate, tax documents, TIN, bank statements, business plan, CV, training certificates, and a budget plan.
We would advise that you have both the hard and soft copies of these documents stored in a folder such that you can easily access them when necessary. In your CV or budget plan, for example, do not exaggerate or tell lies to impress the funders. You might get caught, which will disqualify you from the entire process.
3. Write a Strong Business Proposal
When applying for grants, you don’t get the opportunity to speak with funders one-on-one; instead, your business proposal does the speaking. Just the way you meet a potential funder in person and explain everything about your business to the person, the same applies to a business proposal, except that it is in a written format. Therefore, your business proposal must be clear, concise, and well-structured.
The components of your business proposal include your evaluation plan, what your business is about, the problems you solve, your competitive advantage, and the impacts you’re making on your target audience. Also, include your risk assessment and your success indicators. This information will provoke funders to offer you their business grants.
4. Apply for Multiple Grants
Business owners seeking grants are often encouraged to apply for more than one grant. Properly completing your grant application and providing all the needed documents is not a guarantee of getting business grants. Therefore, frequently check websites that post grant opportunities and apply for as many grants as possible. Small business owners should target smaller grants with fewer requirements.
5. Establish Connections with Other Business Owners
While you may be starting a new business, you must realize that you are not alone. There are businesses you can learn from and network with. Apply for incubator programmes, entrepreneurship workshops, and government agencies like SMEDAN (Small and Medium Enterprises Development Agency of Nigeria). Attend entrepreneurship events and actively participate in business support programmes to build your business credibility. Testimonials from bigger businesses and founders about your business can strengthen your application while applying for grants.
What To Do Before Submitting Your Grant Applications
We are confident that you will get the business grants you need for your business. So, before you click submit grant application on the website or send that email, we advise that you cross-check the requirements. Ensure that your business registration number, tax identification number, and bank details are correctly written. Also, ensure that you strictly follow the requirements from word count to document submission guidelines, and verify the authenticity of all the information provided. There are instances where some business owners have lost business grant opportunities because they made a mistake while filing their details.
Conclusion
Accessing business grants as a small business owner or an entrepreneur is one of the best ways to grow your business without going into debt. No doubt, the process involved is tedious and can be stressful, but it is rewarding. With adequate preparation and an understanding of what funders are looking for, you can get the right grants for your business.
Yes, I know how business owners sweat before they get grants, but that was in the past. There is one platform that simplifies the entire grant process from getting the right grants to writing business grant proposals and monitoring your progress after submission. So, if you are ready, sign up on Applai and allow us to take the burden of the grant application off your shoulders, and you focus on developing your business.
