Grants are publicly funded schemes. They provide cash awards, free equipment, tools, or reduced costs for providing vital resources to entrepreneurs and small business owners. The cash awards range depends on the scheme and can be from hundreds of dollars to hundreds of thousands.
A reason why grants are a great option for start-ups is that the businesses
doesn’t have to pay interest, give away equity, or even pay it back.
Why give grants? The reason for organizations to hand out grant is to aid businesses that will make a positive impact on particular industries, the overall economy, or the availability of jobs. It sounds tempting to think of the grants as free money, but it should be kept in mind that the provider of the grants will want a valuable output from the business.
Grants are useful if:
- Extra funds are needed to grow business.
- Training is needed to run the business effectively.
- Want to undertake research and development .
- Business is currently exporting or is planning to export .
What grants are available for new businesses?
Private Sources
Amber Grants: The Amber Grant program makes $500 grants to women monthly. It annually makes $2,500 grants to one of the monthly winners.
FedEx Small Business Grant Contest: FedEx keeps an annual contest in which small businesses compete with one another to win up to $25,000 in cash and $7,500 in print and business services along with it.
Miller Lite Tap the Future: The beer brand keeps an annual competition in which five semifinalists win $20.000 each whereas the grand prize winner gets $100,000 developmental prize. The submissions start from February to mid-April.
National Association for the Self-Employed Growth Grants: NASE members can apply for $4,000 grants in order to finance a specific need such as website creation, equipment, or hiring part-time help.
Global Innovation Exchange: Funding opportunities around the world are listed by this internationally supported organization which focus on innovation.
Eileen Fisher Women-Owned Business Grant Program: The clothing company offers 10 women-owned businesses a year up to $10,000 minimum grants.
StreetShares Foundation: StreetShares has an annual competition for businesses that are owned by veterans, reservists, or active-duty members of the armed forces or the spouse of such a person. The three grants it offers are $2,000, $3,000, and $5,000.
How do startup companies get funding through grants?
Grant writing is not like a pitch or business plan. Grant writing requires a special skill. Some organizations prepare an application package which lists what they are looking for in a grant proposal. The document should be read carefully before applying for the grant. Thinking of applying to a grant, use our expert writers, get a free consultation.
Applications should be written in the same voice as that used in the application.
Establish the business plan
A clear vision of the business goals and objectives is needed before writing a grant proposal. By coming up with an overall business plan that includes a business budget, where the business will be in the next few years, and an overall mission and statement for the business can be developed. This helps in conceptualizing the main intent behind the business.
The business goals, objectives, strengths, and weaknesses should be analyzed. If you would like to read our
An executive summary of the business should be developed. The executive summary should describe the purpose of the business and what differentiates it from the competition in the marketplace. Next step is to create a summarized sheet of the target market and write up a page on the status of the business. A realistic two-year budget that details all the expected income and expenses should be incorporated. All of these things must be prepared before the grant proposal.
All about Grants
Grants are basically a donation of a set amount of money which is made by foundations, other businesses, government agencies, or nonprofit organizations to companies or individuals. Grants are provided to companies that meet the specific requirement and qualify for the grant.
The grants taken don’t have to be paid back.
It should be kept in mind that grants for businesses follow strict requirements and are usually offered to a minority.
Grants have to be individually written and should be customized according to the grant package. A grant package requires specific information which must be addressed in the grant. In order to effectively respond and create a grant proposal, it is helpful to follow the grant application requirements in the exact order provided. Each question that is asked should be answered in the same voice as the documents. This will help let the organization providing the grant to know that there organization’s purpose is understood.
Organizations providing the grant have a vision.
Therefore, it is important to understand what the vision is and tailor the grant proposal in a way that it aligns with the organization’s mission statement and overall purpose.
A business only has one shot at a grant proposal hence it should be complete and no details should be left out. A cover letter, business organizational chart, executive summary, and other pertinent materials should be included in the grant proposal. The instructions should be followed for submitting the grant in the manner, format, style, and time frame that is required by the granting organization. This includes things such as the type of paper, binders, margins, and font. It should be kept in mind that the exact specifications requested should be followed.
Tips that should be followed before and during the grant proposal preparation:
- Completion of the business plan.
- Financial needs and purposes should be identified.
- Write up an executive summary of the business needs.
- Research funding sources for grants.
- Identify granting organizations which match the business visions and goals.
- Get a hold of grant application guidelines, information, and contact person.
- Before the write-up, any questions regarding the application should be clarified.
- The grant proposal outline should be developed.
- Write the grant proposal.
How can you utilize grants?
When applying for grants one must make sure that they will use the money within the organization appropriately.
If the money isn’t used for the purpose stated in the proposal than the funder may retract the funding or require repayment.
It should be determined clearly on how the grant money will be used before developing a grant application or proposal. The grant funds can be used for a wide variety of purposes. It can be used for personnel, consultant fees, data collection and analysis, meetings, supplies, project-related travel, other direct expenses, and up to 12% in overhead or indirect costs. It isn’t generally appropriate to buy office equipment or office software with the program funds. However, if the office equipment or software is essential for research purposes, it is justified in the budget narrative, and the cost doesn’t exceed 5% of the total direct cost in the budget than it can be acceptable to include such items.
Grants are a huge resource for startups. If you are thinking of applying for a grant, reach out to us as we have industry veterans that can help you with business plan writing, pitch decks, and grant writing. Try our free consultation today!
