One of the major problems upcoming entrepreneurs face is a shortage of funds to effectively chase their dreams.
Fortunately, the problem of lack of financing that most upcoming businesses face has been minimised thanks to government’s new found willingness to help start-ups by providing financial assistance through grants.
But first, what is a government grant?
You can think of a grant as money awarded by the government to finance your business. But unlike other financing options, you don’t have to pay back the sum received as a grant. The fact that the sum received via a government grant is something that you don’t need to pay back makes it a very tempting offer. But before you pounce on the opportunity, you need to first determine if a government grant is ideal for your business.
To determine if a government grant is for you, all you need do is consider the following realities;
- The application process for a grant is stressful and it takes time.
- You are not a 100% guaranteed of being considered eligible for a grant because the screening process is highly competitive.
- Government grants are usually restricted to certain business niches.
- While a grant offers good money, the amount on offer is actually limited. Thus, depending on your business, it mightn’t actually cover all your projected costs
- Grants usually come with specified instructions concerning how you can spend or allocate the awarded sum.
If you do get awarded a grant, be sure to spend it wisely on what’s actually important for your business. Expenses should be limited to important things such as comprehensive business insurance, office space, tools to provide services or stock to sell, staffing, and other aspects you believe your business cannot take off without.
Niches eligible for a grant
- Energy and environment: With the drive towards a green planet going ahead at full steam, the government is offering grants to start-up businesses committed to saving our planet through environmentally-friendly products and services.
- Exports: International trade is a big agenda for government and it’s looking to finance businesses aiming to trade via exportation.
- Innovation: The global tech market is constantly changing and the UK government has no intentions of being left behind. So if your business is geared towards technological innovations, you are very welcome to apply for a grant.
Other factors that will determine your eligibility for a grant include;
- Your business size and classification. Only limited liability companies with a certain number of employees might be eligible.
- The location of your business is another factor. But keep in mind that regional grants for specific locations are available.
What you need to make a government grant application?
Different grants come with different requirements, but typically, you’ll need to submit the following before your business can be considered for a grant;
- A business plan.
- An idea of how the money will be spent.
If you’ve got an idea for a start-up and are itching to start, you can try your luck today at a government grant to access some much needed finances to get your business off the ground.