How To Successfully Secure A Grant For Your Small Business

It is really exciting starting a business. However, one thing every business person knows or has come to understand, is that money plays a very important role. You need money for purchasing equipment, paying salaries for workers, and generally getting the job done. What if you don’t even have enough money to start?

Or, if you wish to expand your business, yet cannot afford such expansions, grants then become very useful. In other words, a grant is free money without paying it back; it can help take your small business to the next level.

But the challenge is that it is not exactly easy to secure a grant for your small business. You must know where to find it, how to apply, and what sets you apart from other applicants. In this guide, we’ll walk through how you can successfully secure a grant for your small business.

Why Grants are a Game-Changer

Imagine you want to start a big garden but have only a few seeds. With what you have, you might be able to grow a small patch of vegetables, but what if someone showed up with a big bag of seeds and some tools to grow a garden 10 times as big? That is what a grant can do for your business: help you grow faster and get more done to reach those goals without the restraint of money.

Grants help small businesses most especially those in Africa. They provide that boost in finances needed to start or expand a business without having to accrue much debt. The bad news is you are not going to be the only one seeking those funds.

Many people want that “free money,” so you have got to be smart applying. The good news? It means that if you are doing the right things, you stand in the running lot and increase your success rate. The good news? You can stand out and improve your chances with an appropriate approach.

How Does It Work?

It is a gift of money given to you by the government, a company, or any nonprofit organization. It differs from a loan because you don’t pay that money back.

Of course, there is a catch, grants have strings attached. Whoever gives you money has something in mind to be done with that money, either creating jobs, new products, or helping out the community in general. Nobody gives away money without first being convinced that your business is worth investing in. Here’s how it typically goes:

1. Locate a grant: You are supposed to look out for grants that suit your business type, size, or location.

2. Apply for the grant: It mainly entails doing some form fillings and letters about your business, why it merits the grant, and how you will use the money.

3. Play by the rules: Most types of grants have rules for receiving them. It could simply be proving where the money is going or hitting set milestones.

How to Secure a Small Business Grant

Getting a business grant is more than just filling out an application form; there are strategies you must use to succeed. Here are five actionable steps you can take to secure a grant for your small business:

Research, Research, Research!

The right grant is out there; it often starts with finding it. Grants emanate from many quarters: government, private foundations, corporations, and nonprofits. However, not all grants are created for every business. Some are for tech startups, others for agriculture, and some for businesses that help their communities. Where to find grants:

• Grant Programs: Most countries have grant programs for favoring small businesses. Check your government’s Small Business Development Office for information.

• Online Grant Directories: Some online sites let you browse listed grants available for different regions.

• Industry associations: Sometimes, companies or industry groups give out grants to businesses that fall into their category.

Take your time finding the grants that match your business objectives and requirements. The more specific the grant is regarding your business, the higher your chances of winning that grant.

Read the Guidelines Carefully

Each grant has a set of rules on who should be awarded. These are known as guidelines and can also give you information on the kind of applicants targeted, what the money is covered for, and what should be included in your application.

Remember, the guidelines are like a treasure map. If you follow it precisely, it will lead you to the treasure. But miss one step in your journey and you can get lost. Many people do not get grants because they did not read the guidelines or simply missed an important requirement.

For instance, some grants are only meant for businesses that have been in operation for two years. If your business is not this mature, you are not eligible, and you shouldn’t bother applying for that grant. You could instead use such energies on those providing the best fit.

Tell a Great Story

It is the most important step. The provider wants to know why they must grant you the money. Here comes telling them about your journey as a business owner, about the problem of your business, and how their grant would make a difference.

Maybe you run a small solar energy company in Nigeria, where you describe your business providing people with electricity in the most remote villages of Nigeria. You describe what kind of difference you would bring to the people’s lives and how the grant can help you scale up and reach even more people. Give real examples, numbers, and facts. Make it personal and show that it will not fall into a waste bin.

Prepare a solid business plan

A business plan acts like a roadmap to help guide you through. It should show what position your business is in currently and where it should be. Most grant applications will request a business plan; this is one sure area where you can show how serious you are about your business. Your plan should include the following:

Describe your business idea: What is your product or service, and who is your customer?
Describe your goals: For what do you need these funds? Increase your staff, develop a new product, expand your operation?
Financial projections: How would this grant add to the financial development of your business?

The more articulate and well-advanced your business plan is, the more confident the provider is in giving you the money.

Follow Up

Once your application is in, it is not a question of simply waiting. In this regard, following up with the grant provider is quite a good thing to do to show them that you are quite interested. This does not mean calling them every day; it means sending them a polite email where you ask them if they got your application and when you could hear from them. Others take a few weeks or more months, so be patient; however, follow-ups show that you are committed and professional.

Final Thoughts

Getting a grant can be life-changing for your business. It might give the much-needed financial boost necessary to make your dreams come true with no debt burden. However, everything takes its own time, effort, and proper planning.

If the first grant you apply for does not come your way, please do not give up! Just keep working on your application and perfecting your approach. The hard work will eventually pay off.

Do these things, and you will be well on your way to getting a grant for your small business. It’s about determination, a great story that must be spoken, and a plan for growth to take place and thrive with the resources that are so vital. Take that first step today, your grant is waiting for you!