For most startups the process of funding can be a daunting task. Although there are many grants available to start a business or procure extra funds for an existing one, but it’s not easy to get your hands on cash.
Especially those that come with a no- payback clause. Your business can improve its chance of being awarded a grant if the purpose is aligned with national priorities. In this post, we will explore how to successfully procure business grants from government as well as private sources.
Research, Research and more Research:
In order to procure a grant, you need to first know about one. There are a number of special initiatives under the present government to promote start-ups.
It is essential for you to check out the government sites and do a proper research before applying for any grant. Under the ‘Make in India’ and ‘Start-up India’ programs, you might not get direct grants but there are definitely a number of tax exemptions that you can to take advantage of.
While approaching any organization for grant it is essential to outline a detailed plan of action. This is necessary to enhance your chances of being able to convince the grant body about the success of your business.
While making this plan, you have to assess as to how your business will be able to impact individuals or other businesses (depending on a B2C or B2B model).
Have a vision and communicate it effectively:
Having a vision is paramount to procuring funding for your organization. For any kind of grant that you might want to apply for, you will have to pitch your idea and unless you have a solid vision of what you want to achieve and how you plan to achieve it – procuring funding will not be easy for you. Planning is the key and to effectively communicate it, is even more important.
Define your USP:
Having a USP viz. a unique selling proposition always works in procuring funds for your business. Unless you have a niche, it might be very hard to get your idea across to potential grant providers. So ensure that you plan and figure out as to what exactly your USP is.
It is obvious that if you are not providing something unique, there are already established players for your product or service and the chances to procure a grant in such cases drastically reduce. Last but not the least, it is important to understand that governments have agendas and defined thrust areas.
This makes it extremely difficult to procure a government grant. It is in fact a good idea to find out alternative funding sources. Enter contests where you can win grants based on your idea. If all else fails, you can always go for loans. With a business friendly government at the centre you will have assured tax benefits if not a grant.