Willing to receive a grant for your small business, you can consider these tips provided by professional writers and field experts from a grant proposal writing service which designed to help students 24/7. Use the ones most suitable for your situation, and get that money to get started!
More, More Realistic Numbers
During the presentation of their project, businessmen, small businesses and startups are happy to talk about the product, team, sales. It is correct, but often it’s not enough to attract funding. We need a high-quality and transparent financial model since it will be of interest to investors and bankers in the first place. To prepare for it, be honest with yourself; make a few scenarios: pessimistic, realistic, optimistic. It is also worth to compare yourself with the market for all available data. You can often see growth points by comparing your indicators and tasks with interesting examples in other sectors. A good model is always easy to check for “physical meaning.” For example, it should take into account the target market shares, the number of purchases per customer, tons/units per customer, the conversion of traffic into transactions, the average bill, the realism of the product mix, and other indicators specific to an individual business. If all the necessary parameters are clearly visible and easily checked on a calculator, then you will form a complete picture and be convincing in a dialogue with the bank or the investor when it comes to specific numbers.
Tell About Plans In More Detail
Another critical issue is a strategy. This should be a short clear explanation of why there is a place for business in the market, and where it will be in five years. To do this, study the available market reviews, articles, and industry news. Based on them, you can identify and describe a specific niche, as well as form a long-term development plan. For example, you are looking for funding to build a plant. It operates in a highly consolidated market, 70% of which is occupied by two multinational corporations. Banks refuse you, because they do not understand how the business will enter the market and what profit can be expected. In the process of developing a strategy, two key areas should be clearly articulated. The first is to sell products under private labels, including federal retail chains, which are not entered by international players, as they develop their own brands. The second direction is the production of premium products, which can provide import substitution with logical localization of production in your country. The idea of “two legs of sales” can convince the bank of the ability of the new project to enter the market and win a target share.
Key parameters of the strategy and financial model require reinforcement with facts recorded on paper. These can be letters or preliminary agreements with future buyers and customers, high-quality market reviews, engineering and technical opinions, quotation requests, and inquiries about the main cost components, forecasts of changes in consumption and prices, agreements with suppliers and contractors. You can even bring facts from the press and other materials that will be of interest to your lender and investor.
See the Lender and Investor as a Partner
Do not forget that it is important for a bank or an investor (any grant giver) to return investments and earn money from them. The owner is naturally interested in meeting the deadlines and generating income in the business. You are in the same boat. Therefore, when communicating, never react emotionally and train your specialists to act adequately, rather than talk about “a request for another piece of paper.” Talk with a partner (grant giver), ask questions and look for ways to make the deal comfortable for both parties.
When communicating with the management of a potential lender (grant giver) and investor, remember that you are not in the exam. That is, explain the essence of the project in a simple and understandable language, without demonstrating your deep scientific knowledge, special industry terms, and technical subtleties. Instead, it is better to spend time on a beautiful and clear presentation. It is not necessary to prepare 258 pages of text in small print with links and curved inserts. Make the first slide about the core idea and 30-40 pages in essence. And any background is beautiful till it is white.