Entrepreneurs who want to turn their ideas into full-blown, successful ventures often look for grants to make that happen. As rewarding as applying for a grant can be, many applicants face pitfalls that can diminish their chances of securing funding. Additionally, with many individuals applying for grants, the process has become highly competitive. This also means that aspiring entrepreneurs cannot afford to make mistakes during the application process that could jeopardize their chances of success.
Poor research
When applying for a grant, one needs to do thorough research on potential lenders, including their priorities and requirements. Applying for grants that are not aligned with the organizational goals, needs, and values should be avoided. As an aspiring entrepreneur, it’s important to steer clear of funding partners with unrealistic or incompatible expectations. Doing adequate research will help increase one’s chances of securing funding.
Failing to include supporting documents
When one applies for a grant it is important to include supporting evidence to back any business idea. If one is unable to provide the documentation necessary to confirm and validate the proposal, grant reviewers may not consider the application.
Not introducing oneself and the venture
It is a common mistake to assume that the funder has read about the venture before speaking to the potential entrepreneur. It is essential to introduce oneself and state the organization’s objectives so that the lender is clear about this information. The document should also cover minute details about the organization, how the program promotes the funder’s missions, and the requirements that will be served in the process.
Too much-written content
An introduction is important, but it is equally vital to stick to the point. Most foundations conduct the proposal process online, which gives one a limitation on how much they can include in the written document. The application should be concise and cover important facts like the organization’s goals and what it stands for, the importance of its services, and why the venture matters.
Unclear budget details
A common area where applicants may struggle is developing a budget. When writing a grant proposal, one must include the budget for the project, which should offer details, including both program costs and invoices from suppliers. As far as possible, one must avoid submitting rough estimates or vague amounts. The party funding the project requires a detailed breakdown of each cent required and its allocation.
Overlooking the eligibility criteria
While one could fill out the application for a grant online, they still need to qualify for it. Checking the eligibility criteria is important to avoid wasting time applying for a grant that might get disqualified. For instance, if the grant is only available to 501(c)3 organizations, but one’s status is still “pending,” the aspiring entrepreneur might need to step back from the application process.
Missing the deadline for Letter of Intent (LOI)
Even a qualified applicant might lose the opportunity to apply for funding if they miss the submission date. An LOI is the crucial step towards submitting a complete application. It allows the funder to get a concise summary of the applicant’s project before submitting a detailed proposal. One should always track the LOI date while preparing a proposal so that it can be submitted promptly.
