What’s involved in the grant funding process?
Are you looking for financial support, but are unsure what’s involved in the grant funding process? Read our guide to find out what’s required and start securing funding for your business!
What kind of grants are available?
Before we delve into the grant funding process, let’s look at the different types of grants on offer. There are all kinds of grants available, from small business grants to charity funding. Here are just some of the different types of grants available to your business:
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Direct grants
Direct grants are usually given to small businesses and start-ups to cover any essential costs. This includes training, new equipment, research, and funding for new projects and initiatives.
With most direct grants, you’ll be required to match the value of the grant. For example, if the funder awards you £5,000, you’ll need to provide £5,000 of your own money.
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Equity Finance
Another option for funding is equity finance. This is where you sell a share of your business in return for funding.
There are different finance schemes available, including the Seed Enterprise Investment Scheme. With this scheme, businesses are offered up to a 50% reduction in income tax. To qualify, businesses must be less than two years old with fewer than 25 employees.
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Soft loan
Soft loans are another option available to start-ups and small businesses. Unlike a regular loan, soft loans have lower interest rates and flexible payment plans. This allows new businesses to make affordable repayments.
What’s involved in the grant funding process?
Now you know the different types of funding available to your business, it’s time for the next step. Let’s go through the grant funding process…
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Talk to the grant body
Before you apply for a business grant, you should talk to the grant awarding body. This will help you determine your chances of success before starting the application process.
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Read the grant specifications and objectives
The next step of the grant funding process is to read through the grant’s specifications and objectives. In particular, you should look at what the grant aims to achieve. By doing this, you can make sure that the grant is the right opportunity for your business.
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Produce an effective business plan
Most funders will expect to see a business plan as part of your grant proposal. This will help them assess your business and how you plan to spend the money. While you should tailor your business plan to each funding opportunity, they should generally include:
- Mission statement
- Product/service
- Information about your company
- Employees
- Financial information
- Growth plans
- Unique selling point(s)
- Target audience
- Realistic milestones.
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Check your funding
As we’ve already established, some funders will expect you to match the awarded amount. Therefore, it’s important that you do your research and check your finances before proceeding with the grant funding process. It’s no good applying for a £10,000 grant if you don’t have £10,000 to match.
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Start applying for grants early
To increase your chances of success, you need to start applying for grants as early as possible. You’re more likely to secure the grant if you apply when the opportunity first launches. This is because there is more money available in the earlier stages. As more businesses apply for the funding, the amount of money available will decrease. So, you’ll be faced with less competition if you submit your application early.
In conclusion…
Now you know what’s involved in the grant funding process and how to increase your chance of success. Firstly, you need to talk to the funder and read the grant specifications. Then you need to produce a great business plan. Remember, the funder wants to know how you plan on spending the money! Finally, you should check your funding and start applying for grants early.
Our Services
Our Grant Writing Service is for businesses who want to start applying for grants, but don’t know where to begin. If you don’t have the resources or the time in-house to write a winning grant – we can help.
Our Grant Writing Consultants have over 60 years of experience in bidding for funding and grants. From grants for charities, start-up business grants and council business grants. They can take care of the whole thing for you – they’ll even submit it on your behalf. You could be eligible for Business Gateway Grants or check out available Grants for Business in the UK.
Get in touch to find out how we can help your business grow!
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