Virtually every business wants to scale especially startups and one of the ways most startups try to acquire funding is through receiving a business grant
But one discouraging thing about it is that a couple of times the fund could be small when compared to the volume of project or it’s difficult to get such grants.
If you have the adequate Knowledge of where and how to go about it, you sure will be able to get a very good one that will just perfect for you.
Before you start putting in energy and time into getting a grant for your business, you need to understand the rudiments, that is the criteria for applying and receiving such grants.
First let’s understand what business grants are for startups
What is a startup business grant?
Startup grants in simple terms is just the funding investors give companies or non profit organisation to run their businesses.
Although most investment needs to always get returns on terms of equity among other things but in this type of funding, it is free which means that the beneficiary of such grants won’t have to pay back any dime either in terms of interest or equity.
One caveat here is that once you are given the grant, you have to use it just as you said you were going to use it which means that it is objective.
For example, a company receives a grant for the upgrade of their software to reach more more users but instead after receiving such grants the company uses it for something else for like using it for business trainings.
When such happens the beneficiary of such grant would have to either pay back the money because it wasn’t used appropriately or be charged for fraud.
How do you know if you are qualified for a business grant?.
Just to let you on this, virtually all business grants from the government are not accessible to businesses that are just starting up or operational expenses in the business or settling of debts.
It has to be something worth investing in.like educational researchs mostly in the sciences field because of the volume of funding it would require.
There are grants available to startups although the list i’m about to give is not exhaustive.
The list includes :
Green startup entrepreneurs
How to apply for a grant for your startup
When i started this article, i mentioned that it’s difficult to get a business grant but if you have an idea on how to apply, it would definitely be an added advantage for you and also increase the possibilities of you getting the grant.
Be advised that investors who give grants are looking for applicants whose claims are very strong and also posses high chamces of succeeding in such endeavour if granted the grant.
To apply for a business grant, you need to know the following:
1. You need to state your aim and objectives clearly with your business plan well written. Also your budget is key, it should be realistic and your market evaluation in the long run shouldalso be realistic.
2. Even as you state your objectives and goals, they should be SMART (specific, measurable, accurate, realistic and time bound). You should also explain howyou intend to achieve your goals and objectives.
3. You should also take into account of consultants that can help you achieve your objectives and bring them in as you big for the grant. This will add to your credibility in the bidding process.
These are not just all you need to know when trying to apply for a grant but it’s the basics. Some organisations offer trainings to potential beneficiaries on what is expected of them and how they should present their claims.
One important thing here to remember is to always use the funds given strictly for the purpose for which it was originally given.
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