Business grants are not a sustainable sourcing of funding or any organization, so you must consider finding additional funding. Grants always include a predetermined time frame in which funds will be released. Once this period has ended, the grant is over. Some grants allow businesses to reapply while others are considered a one-time grant. You can always apply for additional grants, but this can be time consuming. It is better for your business to seek alternate funding before, during and after you apply for a grant.
Finding additional funding for you business can be hard, but if you’re persistent and outgoing, you can ease the process.
Finding additional funding
Before you begin your search to find alternative funds, write your grant proposal summary. You will need a summary to submit with your grant proposal, and having a summary will provide possible investors with a tangible plan. Your summary should include your idea or project, a clear goal, how you will accomplish the goal and the amount of funding required for each step. A business or organization may want to provide funding for a specific part of your project or may even partner with your business to achieve your goal.
Many grants require business to find alternative funding during the grant application process. Outside funding shows that a business is serious about it’s idea or project and has gained support for it. Proposals submitted by businesses that base projects solely on grant funds are not usually successful. Granters want to invest in successful ideas, so the more support you find, the less risky your idea may seem. Granters want to see that a business is willing to gain support from the community, other businesses or educational institutions. So, those are the places you should start when requesting funding.
Research and development grants require two or more businesses, organizations or companies to work together to achieve the project’s goal. This is an excellent way to find alternative funds as the partnering business is likely to provide some funding. Depending on your proposal and your business’s interests, talk to universities, hospitals, corporations and charitable foundations who have similar economic or commercialization interests and needs. They may be willing to provide funding, equipment and researchers for your project.
Find alternative funds with loans and investments
Business loans are available if your project goes above the income of your business. However, it is important to remember that loans must be repaid, so if your venture fails, you could be forced to close the business, sell the business or file for bankruptcy. Also, granters require information on funding that will occur after the grant period has ended, so applying for multiple loans isn’t a sustainable idea. A start-up or expansion loan may be useful, but loans should not be the sole source when you find alternative funds.
Venture capitalists may be a viable resource in finding additional funding while seeing your company grow. Venture capitalists typically invest in a business that shows potential for substantial growth, that way they can see a profit when they decide to exit the business. A venture capitalist firm or individual might be more willing to invest a large amount of money if your business has a well-organized grant proposal.
Money is available for businesses who are willing to work to find it. Use your professional contacts, community leaders and top organizations and corporations to help you find alternative funding.