In Our Opinion
Making the most of grant opportunities
So you want to raise money either to start up, or to develop your existing business?
Even in this difficult financial climate there are still a variety of sources you can consider: banks, business angels, family and friends, loans and venture capital or a grant.
Grants are available from many sources: the Government or local Council, the Regional Development Agency, European Union but also the National Lottery, other charitable organisations and private individuals.
In fact specialist grant databases contain lists of more than 4,500 grants available worth an enormous £50billion – and yet surprisingly 96% of SMEs never apply.
If you are going to be one of the smart 4% and take advantage of this opportunity, there are some key steps you need to take.
Look at the different options – is there something just right for your business?
By accessing one of the databases of grant opportunities, you can discover whether there are specialist grants for your type of business. Perhaps your business is based in a certain geographical area where funders are keen to support business development, maybe there is something key about your industry sector that is attracting support, environmental businesses have several funding options for instance, and there are extra opportunities for young, BME or female entrepreneurs too.
Eligibility usually depends on your location, the size of your business – most grants only fund SMEs with fewer than 250 staff, your industry sector, what you want the funding for (it is highly unlikely you would get funding for running cost, Training, R&D or capital equipment purchasing would be more commonly funded) and in some cases the length of time you have been trading is important. Some grants support new businesses in particular, others more established ones, but there is sure to be one out there with your name on.
Be prepared to give time to the process of applying for a grant.
Grant giving organisations need to be able to account for their decision to fund your business, especially if they are using tax-payers money or charitable funding, so expect a rigorous application process. They need to be sure that the money they will give you will be spent wisely, for the purpose intended and for the aim they wish to promote, so the forms can be a little daunting. You will need to spend time gathering the required evidence – which might include bank statements, a CV, cash-flow forecasts, provisional P&L accounts, a company profile, organisational charts, specs for any equipment you wish to buy, and the all important business plan. This might seem like time you can ill afford, but it will be worth it to your business if you are successful.
Develop a sound business plan and revise it every 2 months
The number of businesses who do not have an up-to-date business plan continues to astound advisors. Whether seeking funding or not, all businesses should know where they are going and how they intend to get there, what that will cost and where the money will come from along with likely sales and costs. If you don’t know the answers to these questions then you cannot expect outsiders to help fund your progress. However, a good business plan conversely can be key to opening up the coffers. Funders particularly want to see specific targets and results and for the project to be viable.
Ask for help and advice
You don’t have to do it all on your own, most funding organisations will have an advisor to help with any questions as you go through the process, remember that they want your bid to be successful, that is what they are here for.
You should also approach businesslink, your accountants, specialist business advisors or any one of the local and regional organisations set up to ensure a successful future for your business. Good luck!
