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Small Business Grants: A Practical Guide to Business Grants
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So you’ve got a brilliant idea, but no cash. You need start up capital to move your business from an idea to reality. An initial injection of money could enable you to fund R&D, conduct market research, test the market with a prototype, get legal advice or develop marketing materials. One route is to look for a business grant. Top 10 tips…. 1) Talk to your local enterprise agency, local council economic development officer and Business Link to see if there are any grants available in your specific area. 2) Work out exactly what you need the money for – grants won’t be provided for general running costs, they will support a specific outcome – eg premises, training, trademarking etc 3) Grants are often tied to rigid selection criteria – age, gender, ethnicity, unemployment or have a specific remit such as R&D or innovation. If your idea doesn’t fit – don’t try to force it. 4) Make personal contact by phone or ideally face to face with the grants officer – don’t just send in your application cold. Talk through your proposition with them to check whether your idea is suitable and it is worth applying. 5) Prepare a business plan to accompany the application form – but make sure it stands out from the crowd. Most importantly you will need to present a compelling vision, a passionate commitment, clear benefits and robust cash flow forecasts. 6) Be aware that grants are often allocated on a cyclical basis. Research upcoming deadlines and be prepared to wait several months for a decision – don’t expect a quick answer. 7) For larger funds, one grant will not usually fund 100% of proposed costs – so you will have to find match funding from another source. 8) Ask yourself honestly – could this business get off the ground without a grant. Look at alternative sources of finance, such as loans, 0% credit cards, credit unions, friends and family. Funders will want to make sure that there is no chance of you moving ahead without their support. 9) Don’t take your eye off the ball. It’s easy to get distracted by the lure of grant money – and this can become the focus of your energy rather than building your business. 10) Become a Bootstrapper - many people convince themselves that the only way to start a business is to raise large sums of money without realising there are other, less conventional routes. Bootstrapping means finding creative ways to support your start-up business until it turns profitable. This method may include negotiating delayed payment to suppliers and advances from potential partners and customers. The key is to start small, start selling and start generating your own cash to fund your business growth. Jo Hill, Affinity Trading Network |
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