Business support in the form of grants to help you start a business or develop specific projects can provide much-needed finance and sometimes expertise to help your business grow.
Grants are available for a number of business activities or projects and cover many business sectors. Grant funding is intended to support and develop enterprise in the hope that it will also provide a boost to employment and the local economy. A variety of organizations and Government departments offer grants and as a small business, you may be eligible to access some of these.
What is a grant?
A grant is financial assistance, usually to start a business or for a specific project, which is given to your business by an awarding body. Grants provide finance to allow your business to undertake a specific project that, without financial assistance, would not be able to proceed. Such a project might involve the initial start up of the business, developing a new product or buying equipment.
A grant is usually a one-off payment and provides funding that covers a percentage of the costs of the project - normally, you or your business will have to meet some of the costs too. Unlike a loan, a grant does not usually have to be repaid, unless you fail to adhere to the specific terms and conditions of the scheme.
What can you get a grant for?
Grants are available for a variety of projects, but each individual scheme will offer funding for a specific purpose. Whether you qualify for a grant can also depend on factors such as the type of business you run, the size of your business, whether the project will create jobs and where your business is located.
Grants may be available to cover one or more of the following activities:
- Advertising, marketing and promotion.
- Business expansion and relocation.
- Business start up and market testing.
- Investment in capital equipment.
- Co-operatives and community enterprises.
- Product design.
- Environmental improvements.
- Exporting.
- Improving business premises.
- Information technology (IT) and e-commerce.
- New technology and innovation.
- Recruitment and training.
- Research and development (R&D).
- Security.
It is worth noting that grants cannot usually be used for working capital or simply the organic growth of your business.
Will you be eligible for a grant?
Most grants have strict eligibility criteria or specific exclusions, for example for certain locations or industry sectors. Although individual schemes vary, there are some common themes across most grants.
Some areas have their own grants or specific schemes targeting social deprivation or high unemployment. Other grants are only available to businesses of a certain size, measured by turnover or the number of employees.
Certain sectors, including shipbuilding, coal and steel, agriculture and transport, are subject to special restrictions. Manufacturing businesses are more likely than others to qualify for grant support, while retail businesses are least likely to qualify.
Most grants are not available retrospectively. For instance, if you are planning to start a new business you should apply for any appropriate grants well in advance of the date you intend to start trading. You will not usually be eligible for this kind of funding if you have already started to trade, and if you have already purchased the equipment you are seeking a grant for it is unlikely that the application will be considered.
Successful grant-writing involves solid advance planning and preparation. It takes time to coordinate your planning and research, organize, write and package your proposal, submit your proposal to the funder, and follow-up.
Organize your proposal, pay attention to detail and specifications, use concise, persuasive writing, and request reasonable funding. Clearly understand the grant maker's guidelines before you write your proposal. Make sure the grant maker's goals and objectives match your grant seeking purposes.
Preparation is vital to the grant-writing process. Solid planning and research will simplify the writing stage. A well-written proposal follows the basic steps outlined below.
- Prove that you have a significant need or problem in your proposal.
- Deliver an answer to the need, or solution to the problem, based on experience, ability, logic, and imagination throughout your proposal. Make sure your proposal describes a program/project for change.
- Reflect planning, research and vision throughout your proposal.
- Research grant makers, including funding purposes and priorities, and applicant eligibility.
- Determine whether the grant makers' goals and objectives match your grant seeking purposes.
- Target your proposal to grant makers appropriate to your field and project, but do not limit your funding request to one source.
- Contact the grant maker, before you write your proposal, to be sure you clearly understand the grant maker's guidelines.
- Present your proposal in the appropriate and complete format, and include all required attachments.
- State your organization's needs and objectives clearly and concisely. Write well. Do not waste words. Use active rather than passive verbs. Use proper grammar and correct spelling. Be clear, factual, supportable, and professional. A well-written proposal is a key factor in the grant maker's decision-making process.
- Be clear about why you are seeking a grant, what you plan to do with the money, and why you are a good fit with the grant maker's priorities. Prepare an interesting, persuasive and unique proposal.
- Always cover the following important criteria: project purpose, feasibility, community need, funds needed, applicant accountability and competence.
- Answer these questions: Who are you? How do you qualify? What do you want? What problem will you address and how? Who will benefit and how? What specific objectives will you accomplish and how? How will you measure your results? How does your funding request comply with the grant maker's purpose, goals and objectives?
- Demonstrate project logic and outcome, impact of funds, and community support. Be specific about broad goals, measurable objectives, and quantified outcomes.
- Always follow the exact specifications of the grant makers in their applications, Requests for Proposals (RFPs) and guidelines.
- Follow-up with the grant maker about the status, evaluation, and outcome of your proposal, after it is submitted. Request feedback about your proposal's strengths and weaknesses.
