“Grant writing is science, but it’s not rocket science.” – Meredith Noble.
While crafting a small business grant proposal may not require a special degree, it does require careful attention to detail and a solid understanding of what funders are looking for.
The key is to clearly explain why your business needs funding and how the grant will help you achieve your goals.
Start by focusing on the essentials: finding the right grant, clearly explaining your goals, and showing the positive impact of your project. So, let’s explore more about grant proposals.
What is a small business grant proposal?
A small business grant proposal is a formal written request generally submitted to any grant-giving organization (like a government agency, foundation, or corporation).
The proposal outlines the business’s needs, objectives, and plans for using the grant funds, showing how the money will help achieve specific business goals.
It also includes a detailed project description, a problem statement, project goals, a budget plan, and an impact analysis to persuade the grant money provider to invest in the business.
How to write a grant proposal for a small business?
Writing grant proposals can be challenging. To increase your chances of securing funding, it’s essential to understand the steps involved in creating an effective grant proposal. Let’s see all the steps involved in the grant proposal writing process:
1. Consider guidelines and requirements
First, you need to start identifying the available grants that suit your business plan and needs. Research grant opportunities like government grants, state grants, federal grants, local grants, project grants, research grants, seed grants, or any other funding agency that funds businesses in your area or industry.
Go through each grant funding opportunity and understand their requirements, funding limits, eligibility criteria, and timeline of the grant.
Now evaluate whether your project aligns with the grant’s goals and addresses their interests to increase your chance to secure funding.
2. Include a compelling cover letter
Your cover letter is the first impression you make on the grant reviewer, so it has to be simple and eye-catching.
Begin by introducing your business and outlining its mission and goals. Then clearly explain why you need the funding, the exact amount you’re requesting, and how the grant will positively impact your project.
Take a moment here to express gratitude for the opportunity to apply, and set a positive tone that makes the grant funding reviewer continue reading. Now, think of the cover letter as your elevator pitch—short, to the point, and memorable.
A persuasive cover letter will surely increase your chances of getting the grant, so make this first section worthwhile.
3. Prepare an intriguing executive summary
The executive summary is a brief overview of the whole proposal. It should clearly state your grant request’s purpose and a short story about your project.
If the reviewer reads just the executive summary, they should be able to understand your request and its importance fully. Also, timeline-specific milestones help grant reviewers to understand your objectives clearly.
Additionally, make sure to highlight how your project aligns with the grantor’s priorities or requirements, stating you’re a perfect fit. Also, use a conversational tone here to make a memorable impression so that grantors might continue from here.
Also, Saddat Abid, CEO of Property Saviour, advises, “Create a mood board: We made a visual representation of our vision for the property. It helped us communicate our ideas more effectively than words alone.” Including visuals like this can make your summary more engaging.
4. Introduce your business
When introducing your business in the grant proposal, provide a detailed project description that captures its essence. Start with a brief history of your company.
Describe your products or services, emphasizing any unique selling points it has that differentiate you from competitors. Don’t forget to include market analysis to highlight your target audience, market needs, and main competitors.
Use data to back up your claims, such as market size or customer demographics. This section should build trust by showcasing the strength and viability of your business.
5. Include a problem statement
The problem statement identifies the specific issue or need that your project addresses.
Be clear and concise in defining the problem. Use data, statistics, or real-world examples to illustrate the significance of the issue.
For example, if your project aims to address a gap in the market, provide evidence that this gap exists and explain its impact on your community or customers.
This section is crucial for convincing the grant provider that your project is necessary and valuable. A well-defined problem sets the stage for a compelling proposal.
6. Outline project objectives and goals
Once you’ve stated your problems, it’s time to outline your project objectives and goals. It should clearly mention what you plan to achieve with the grant awards or funds.
Ensure your goals are specific, measurable, achievable, relevant, and time-bound (in short SMART like you 😉). Describe the steps and activities you’ll take to reach these objectives and include a timeline to show when each step will occur.
Use simple language to keep your explanation and all the details clear and engaging, avoiding jargon that might confuse the reader. This section should showcase your project’s purpose and its potential impact.
Remember, “A goal without a plan is just a wish.” Make sure your outline shows you have a well-thought-out and actionable plan.
7. Include a budget
This is the section where you should clearly mention all the costs of your project. List each expense, like salaries, materials, or any other costs with an explanation of why it’s important.
Show how you will use the grant money on each expense. Also, make sure the budget matches project goals and funding.
Highlight if there are any in-kind contributions (non-cash resources like donated materials or services) or cost-sharing deals for additional support to the project. Being transparent about your budget builds trust showing that you’ve considered all financial aspects.
8. Present a strong organizational profile
A strong organizational profile is important to showcase your passion and capability towards the project. Start by providing a brief history of your organization and highlighting all your achievements and success stories.
List down the key management members of your project, showing their expertise and qualifications. Include awards, recognition, or partnerships that add credibility to your project.
This section should reassure the grant provider that your organization is trustworthy, competent, and well-equipped to deliver results.
9. Emphasize the impact
Showing the impact of your project is necessary to convince grant providers of its value. Focus on the measurable outcomes your project will achieve and how it will benefit the community, environment, or industry.
Describe the broader effects your project could have, such as creating jobs, promoting innovation, or addressing a significant social issue—provide as much relevant information regarding impact to make a solid case. Use any specific examples or case studies to illustrate your potential impact.
For example, a small business applying for a grant to expand a recycling program could explain how their current efforts have already diverted 10 tons of waste from landfills and educated hundreds of residents about recycling. This example helps the grant provider see the real impact of the project.
10. Perform a final review
Before you submit your grant proposal, take a final look at the grant application. Carefully check the entire proposal for any errors in spelling, grammar, or formatting to ensure it looks professional.
Again read the grantor’s requirements and make sure all sections are complete and aligned with those grant proposal guidelines.
Verify that all supporting documents, such as budgets, timelines, and management profiles, are included in a proper format. It’s also wise to ask some third person to read the proposal and provide a fresh perspective.
Pay attention to details and don’t miss anything to create a successful grant application that can increase your chances of securing the grant.
11. Submit and track your application
After your final review, it’s time to submit your grant proposal! First, double-check the grant application process and submission method. Then ensure that all the documents are correctly attached.
Once you hit “submit,” don’t just sit back; track your application status and any deadlines for additional information.
Also, submitting multiple applications (federal grants, private organizations grants, government agencies grants, etc.) can boost your chances. Around 90% of respondents who submitted 3 to 5 applications won at least one grant from granting agencies.
Set reminders for follow-ups to show that you’re proactive and engaged. A friendly follow-up email or call can keep your proposal at the top of the grantor’s mind. Stay persistent and keep an eye out for any updates.
4 Tips for writing a successful business grant proposal
Presenting a clear, concise, and persuasive proposal shows why your business deserves the grant. Here are some tips for grant writers for a winning grant proposal:
1. Customize your small business grant proposals
Customize your proposal to match the specific interests of the grantor. If you apply to multiple local grants, you need to customize each one according to the requirements.
For example, the Bill & Melinda Gates Foundation focuses on global health and education, so any proposal aligning with these goals or areas is likely to be successful.
2. Include testimonials and case studies
Including real testimonials and case studies can enhance the credibility of a typical grant proposal. Case studies detailing previous successful projects with measurable outcomes can show your expertise and experience.
For example, a nonprofit seeking funding for a literacy program could include a testimonial from a previous participant who improved their reading skills and secured a job.
3. Use visuals
Visual elements like charts, graphs, or infographics can make your proposal engaging and easier to understand. A successful grant proposal has more visuals and infographics than plain text.
For example, a charity applying for a nutrition grant might include a chart showing the reduction in malnutrition rates from a previous program.
4. Use strong and active language
Using strong, active language in your proposal conveys confidence and clarity. Instead of saying, “We hope to achieve,” use “We will achieve.” This creates a more decisive tone and shows your commitment to success.
3 Most common business grant proposal mistakes
Even the best-intentioned grant proposals can fall short due to common mistakes that are often overlooked. Knowing these mistakes can help you avoid them and increase your chances of success. Here are some common mistakes to avoid:
1. Underestimating the budget
Presenting a budget that is either too vague or overly ambitious can signal a lack of planning. Ensure your budget is detailed and realistic, reflecting all expenses and justifying each cost. A well-prepared budget shows you have thought through every aspect of the project.
2. Submitting an incomplete grant proposal
You must include all required documents or complete all sections of the application to avoid immediate disqualification. Carefully review the grant requirements to ensure your application is complete. For example, missing a letter of support or forgetting to sign a section can result in a missed opportunity.
If needed, refer to grant proposal samples or download a grant proposal template from the internet to ensure you don’t miss out on anything.
3. Not providing a detailed plan for evaluation
Funders want to see how you will measure the success of your project. A vague or absent evaluation business plan can be a major oversight. Include clear metrics and methods for evaluating the impact of your project to show accountability and transparency.
How to find grants for small businesses
Finding the right grant is necessary for small businesses as it can provide funding without repayment. The right grant aligns with your business’s goals and increases your chances of approval.
Upmetrics is a business planning software for entrepreneurs and small business owners. In addition to planning, we also provide resources and assistance to help startup and small business founders grow.
Here are some resources to help you find the best business grant for your business:
- Top Small Business Grants
- Small Business Grants In Texas
- Small Business Grants in Illinois
- Small Business Grants in Georgia
- Small Business Grants in California
- Small Business Grants in Michigan
- Small Business Grants in New York
- Small Business Grants in Pennsylvania
Other resources to find the most suitable grants are:
- GRANTS.GOV
- Small Business Administration
- U.S. Economic Development Resources
- State and local governments’ websites
Conclusion
Remember, each part of your proposal plays a crucial role, from the cover letter to the budget and the impact statement.
Take the time to refine your proposal, avoid common mistakes, and present your business in the best light possible. With a strong, well-prepared proposal, you’re one step closer to turning your business goals into reality.
