How can I use grant funding to overcome business challenges?
Released On 6th Jul 2022
Being a business owner comes with a wide range of challenges but getting your finances in order is fundamental to ensuring your business' survival.
Unfortunately, funding is not just an issue that is exclusively encountered when starting up a business.
With many business owners aspiring to build their empires, sourcing funding to sustain growth can be an ongoing battle.
One method you may wish to consider is grant funding. It can be a really daunting prospect if you have not applied for such funding before, but if successful it can really help your business thrive.
Sourcing funding
As there are many different options when it comes to funding, recognising which course of action would work best for your circumstances can be challenging.
This will also differ based on the stage that your business is at, for instance when initially starting up your business, the funding issue will be centred around how to get the business off the ground.
Key considerations for a start-up include how much funding you require, along with whether you would like to personally finance the business (through savings or loans) or whether to bring in external investors.
As the business progresses, you may have goals to accelerate growth, which requires further considerations of how to fund this. If the company is in a strong position, you may be able to use profits to expand its operations.
However, if external funding is needed, it may be worth exploring available grants, or even crowdfunding.
Grants could be the way forward
Business grants are payments provided by the Government or private organisations, which do not have to be paid back.
Depending on the type of grant you apply for, you might receive your grant as a lump sum, as a reimbursement after spending your own money or you may need to match it after receiving it.
Business grants usually have specific eligibility criteria and take factors into consideration, such as the size of your business, your location, the sector your business operates in and the purpose of the grant funding.
How to apply for grants
The Government offers a selection of grants and loans to help businesses through the Department for Business, Energy, and Industrial Strategy. You can search through the Government’s online business finance tool to find a grant and funding options to suit you.
Remember that there is no one-size-fits-all approach to applying for grants so be sure to do your research and even contact the provider to find out what is involved. There will also be conditions attached to any grant, so make sure you understand these fully.
Regardless of the type of grant that you apply for, make sure you have a thorough business plan in place. You will also have to check your funding, as most grants will look to match the amount you are willing to invest. Be sure to also check the grant objectives and think about how you can fulfil these.
By taking the time to apply early and complete a thorough application, you put your business in the strongest position to successfully receive grant funding, so you can get on with taking your business to the next level.
Need advice on funding to help your business’ finances? Contact us for more information.
