How To Secure A Business Grant For Your Small Business
All businesses will require some amount of start-up capital, and some types of businesses will require a significant amount of capital to get the business up and running. Start-up capital may be used to secure a business facility, inventory, equipment, staff and other vital components that a new business requires. There are numerous sources of money that an entrepreneur can use as capital, and these include using his own personal funds as capital, borrowing money through a small business loan and fundraising by bringing on a partner. Perhaps the best option, however, is to apply for a grant. Grants provide a start-up business with money that does not need to be paid back, so it is a preferred source of funding. However, securing a business grant can take considerable time and effort.
Research Available Grants
There are essentially two different types of grants – government grants and private grants. Private grants can be more difficult to find, and competition for them can be fierce. However, government grants are not easy to apply for either. The government has intentionally created a complicated and length application process for grants to ensure that only the most devoted and diligent applicants receive funding. Furthermore, government grants are most suitable for certain types of start-ups, and these include research and development, real estate development, environmental activities, capital investment in specific regions and other such activities. Understanding how government grants are most often awarded can help you to determine if a private grant may be more suitable for your needs.
Understand the Application Process
The application process for both private and government grants can be cumbersome and it typically begins with the filing of an application. However depending upon the type of grant that you apply for, various supporting documentation must be submitted along with the application. Understanding the grant application process is critical, so take time to thoroughly research the requirements. Ensure that you can complete all of the application requirements before you embark on the lengthy process.
Many small business owners and entrepreneurs who want to start a business but lack the funding to do so begin researching grants, but only a small number of those potential grant recipients actually receive the funding they need. The fact is that many give up on application process. However, with persistence, their effort ultimately may have resulted in a processed and approved grant application. Also, keep in mind that those applying for a government grant in the United Kingdom may benefit from the use of a mobile app designed for this purpose.
Some new businesses require only a small amount of start-up capital, and these businesses may quickly begin to turn a profit for the owner. Others require a significant capital investment coupled with an additional influx of cash to keep the business running until it begins to turn a profit. Grants are an excellent source of capital that you can use, but you will need to research the options carefully, follow application instructions fully and be diligent in your effort throughout the process.
Written by Warney Boyd
Warney is a casual writer specialising in business advice. Warneyhas been one of the guest speakers in a few national business conferences in Australia. He also teaches public speaking skills in an institute in Sydney.