All small-business leaders are inundated with information on how to build a successful organization. The lure of small business grants can become incredibly tempting as you're wading through difficult times. However, as your organization grows, you will find that many grants being offered aren't necessarily your best option.
Only you can decide whether there is sufficient return on the investment you must make to secure and complete a given grant.
There are also many grants out there that are limited to women-owned businesses, which you would think would also help your organization's chances of winning a grant. However, valid criteria for whether a grant must be developed to have a chance of succeeding--both at winning the grant and forwarding your organization. If a grant's top amount awarded is $20,000 and you need $200,000 to accomplish your aims, then it's the wrong grant for you.
Eliminate first, then move forward with the right grant
When researching grant funding opportunities, the best possible way to look at a request for grant applications is to see if you can eliminate your organization from the running. The faster you can do that, the faster you can move on to find one that is the right fit. There are going to be any number of criteria for you that are important, but some key attributes to help eliminate specific grants are:
Is the funding a fit for your business?
Interests range as widely as the funders do, but if you own a medical services business, a funder's request for a program/project that promotes art in the communities is not just not a good fit. Rather, it's wasted effort on both your part and the funder's.If you and the funder share the same interest, but the funder is oriented on a specific project that is not already in your plans, then put them to the side. Do you really want to hire six new people to complete a project that must be completed in six months according to the grant rules? If a specific program or project is not appropriate to you now, you should not change your company to meet a grant funder. Grant funding is, by definition, temporary - will happen a year from now when the grant money has been spent? Many funders even specify that you must skip a year between applications to their organization.
Is there formal certification (such as Woman-Owned, Disadvantaged Business) that is required to be eligible to apply? Do you have it? If not, can you get it in time for the application deadline?
Past behavior is the best predictor of future action. If you need a quarter million, find a funder who has awarded that much in the past. If they haven't, then put them to the side. How do you find out? Call them! Most private or public funders will be happy to let you know.
Are the logistics more burden than your company can reasonably support?
When you're filling out a 42-page, printed-out application to apply for a $2,000 grant, it's simply not a good use of your time. Neither are monthly 30-page required reporting for small grants. One way to decide on the post-award requirements burden is to reach out to businesses who've achieved the grant in the past and get an honest assessment of the effort involved in completing the grant. These conversations are valuable in terms of grant application efforts, as well as building your community of business owners like you.
Fundid is on a mission to get women-owned businesses the capital they need to grow so that we can all close the business wealth gap. While 42% of businesses in the US are owned by women, they only account for 4% of revenue generated by private businesses. We spend our time at Fundid thinking about what the world would look like if women also generated 42% of revenue and how to get them the capital they need to make that happen. Fundid is creating new ways to get small businesses the capital they need to grow and is built from the feedback of women entrepreneurs.