Types of Small Business Grants and Tips to Win Them
Running a business is not easy, no matter whether it is big or small. People have to put in a lot of hard work to get someone to invest in their businesses. While big firms may find investors easily, small businesses remain behind. One of the best ways for them to get funding is by requesting for a small business grant. Here, we’ll understand the types of these grants and how to get them.
Types of grants for small business startup
Those who run startups or small businesses will come across multiple sources that offer grants. These include:
- Federal small business grants
The federal government is among the best sources to approach for a grant.
Small business owners can also apply for grants through their state or local government. These government bodies run several initiatives every year to support and fund small businesses.
Many accomplished businesses, corporations, and non-profit organizations give small businesses grants. Some of them also offer mentoring programs in addition to financial support. Those who run startups or small businesses can benefit so much from these mentorships and lessons.
To be eligible for many commonly available grants, businesses are often required to prove that they have been running for at least six months before the application. Because of this, many small business owners hesitate to apply, especially if they are just starting out. To overcome this challenge, small business startup grants are created. They provide funding to small firms that are in their early stages.
How to qualify for startup business grants
It is not easy to win a grant for a small business because many apply at the same time. So, we listed some tips that may give one an edge when applying:
- Find the best-suited grants
One should remember that some grants are reserved for particular types of businesses. A businessman has a better chance of winning a grant from an organization that works in the same industry as their business. People also have an upper hand in getting the grant if their business’s goals match the goals of the body that is offering the grant. - Go through the application
Different grants have different eligibility criteria. This means business owners should pay attention when reading the terms of the application. The application will have a long list of requirements. One should make sure they fulfill these requirements if they want to win the grant. - Take a look at the previous grant winners
A good strategy to win the grant would be to take a look at the previous winners. Individuals can study their business strategies and profiles to get a better idea of what more they can do to win the grant. - Take time to fill out the application
Individuals can start filling out their applications if they think they stand a chance. However, one must take time to fill out the form in the best way possible. One must also be careful to not miss the deadline of sending their application. Delaying the submission too much may not be ideal as a lot of grant-offering bodies have limited funds. And if they run out of money, even with a good application, one may lose the chance to win the grant. - Seek help for grant writing
Writing a grant proposal is a crucial stage in the application. This proposal explains the business and its goals. To have a better chance of winning the grant, it is best for one to seek all the help they can for writing the proposal. One can either refer to grant writing books and guides or seek help from professional writers who can phrase the proposal in the best possible way. - Get the grant proofread
After the proposal has been written, even if by a professional writer, it is better to get it proofread by trusted people. It is even better to get it proofread from friends or family who have previously won business grants or have been involved in the process.
When following dreams and trying to win a grant for a small business, it is in one’s best interests to stay optimistic. However, it is also advisable to have a backup plan, should Plan A fail. A backup plan keeps a person from losing hope and prepares them to face the challenges of a worst-case scenario. An individual’s Plan B should be to seek funding for their business from alternative sources if they do not manage to win a grant. Small business loans, small business credit cards, crowdfunding, peer-to-peer lending, and bootstrapping are a few sources one can try.
