Every new business needs finance when they are first development stage. You will need to buy equipment and your workplace will need to be in place and all your marketing costs being sorted, but it does not stop here; when you are officially set up and your business starts to make money you need to cover all of your bills and your staffs enterprises wages.
In terms of funding required to establish your business, there are a number of options available to you. One of these options is grant funding. So what exactly is this grant funding? Grant funding is part of the money that is given to individuals or businesses for a specific project or goal.
Grant finance however only covers part of the cost involved in your business venture, but the money given to you does not need to be repaid. Grants are given to businesses to help with specific aspects of business development and are available from a variety of sources such as the government, the EU and regional development agencies. These business grants are given to companies for a reason and there are a number of factors that can affect whether you are able to obtain such a grant that your business activity or specific sector of the business industry, some are also linked to certain geographical areas which are in need of economic regeneration.
Business grants are notoriously difficult to obtain and there are only a certain amount that is available to businesses every year so the competition for these business grants is strong, which is why so you’re hoping to win one you need to clearly define what the grant will be used and how it will benefit your business and how it will benefit your local community. You will also need to show clearly that the specific project you want the money to has not already started to take place and you are able to put the rest of the money needed for your specific project to grant money because, as mentioned earlier, a business grant covers only part of the money for a specific project.
A business grant will cover between 15% and 50% of total costs involved in your business plan so you’ll need to get hold of the rest of the money. If you win a business grant when you do not have the other half of the money available or if you have already started the business plan, then you will be made to repay the grant in full you violate the conditions your business grant.
If you’re hoping to make a business grant application, then you must ensure that you check the available grants. In addition, there are some factors that could affect you win a business award such as the size of your business. Some grant providers will give you access to a grant if your business is a small or medium business, ideally with less than 250 employees. In addition to the size of your business, you should also think about your industry. This is because funding can often be limited and subject to restrictions in certain sectors, which are defined by the European Commission. Other restrictions include the location of your company and the purpose of your grant.
If you ask a business grant, it is advised that you apply well in advance of when your grant is necessary that applications can often take some time to process.