As a small business getting started it’s tough. Money is needed to cover the various start-up expenses you may have.
A government grant can help a lot.
Generally speaking, government grants in the form of free money will ensure that you can start your business, fund the various costs you have, and succeed without the worry of having to pay that money back.
In other words, congratulations you won the lottery.
Unfortunately, this is now how it all works.
Government grants exist, however they’re handed out to those individuals and business owners who need them the most. It’s not to say that you don’t need it but specific businesses requiring the funding for specific needs are more likely to obtain a non repayable government grant.
So as much as you need just a government grant and no other type of funding, it doesn’t mean that this is what you will be eligible for.
There are a number of factors to consider when asking for a government grant.
These factors include the pop 5 such as
- The location of your business
- The specific industry your business is in
- The funding requirements that you have
- Your business plan
- Time of the year and deadlines
The above factors play a role in determining your eligibility for a Government Grant. Additional factors may be considered as well as each government funding program has it’s own criteria as well.
A government grant, being considered as a non repayable form of funding, it is always the top pick for most businesses. It’s money you don’t have to pay back.
However, the government agencies to provide the funding think of it a bit differently.
The agencies that provide the government grants focus on specific needs.
Usually, a government grant will be provided to those who help the business achieve success through a method of ensuring a wider benefit within the community.
Things like hiring employees, providing training, going green, and similar will more benefit from a government grant than those whose focus is to purchase equipment, pay for marketing, or spend the money on supplies and inventory.
Remember that the key focus of any government grant agency it’s not to just hand out the money, but to meet the own objectives that they want to accomplish with the money they have set in place.
These objectives must be met. So, when you are applying for funding, you should always ensure that you match the criteria, otherwise, don’t apply.
Depending on your specific funding needs, it might be a good idea to break down the amount of funding that you need into the specific requirements. Doing this will help determine if you’re eligible for a government grant only or multiple types of programs including those of government loans, tax breaks or tax credits.
Speaking with an Ontario Startups expert will also help you determine what you’re more likely to obtain in the form of funding from the various levels of government.
Is there a way that you can only obtain a grant for your business?
Many business owners only apply for a government grant.
Some are successful, some are not. The success of your applications depends on many factors.
If you are only in the market for a grant, a regular search to access all available funding is often recommended. As funding programs change regularly, keeping a lookout for the top grant programs as they come out is always key.
While it is recommended to apply to multiple sources and maximize your potential, you know your business best and you know exactly what you need money for. Focus on that which requires the most.
Keep in mind however that you are most likely to obtain funding for your business when your funding needs are broken down properly and when you consider all types of funding programs and you utilize the funds only for the requirements that you have in mind within the first year of business.
If you need guidance or wish to access all available funding options for your specific business the Ontario Startups funding database has all of the government grants and other forms of funding options listed.