Maximizing Government Funding for Small Businesses in Canada
As a small business owner in Canada, money is crucial to your success. It can help you startup with limited concerns, can help you cover the needed expenses, and assist you with growing your business.
To get more money, the government of Canada has made over 1,500 government funding options available for the taking. Yet nearly 80% of applicants who apply for government funding are often denied, due to simple application mistakes.
Most of the denied funding applications can be summarized into a few points:
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- Application is denied because you asked for too much (beyond the limit of what the agency can provide)
- The funding needs listed did not match the funding program
- Insufficient information was provided at time of application
To combat this and to ensure that you as a small business in Canada can take advantage of these funding options and maximize your potential, follow these 3 foolproof tactics:
1. Provide all documents needed
2. Have a clear breakdown of your funding needs
3. Ensure you read the program criteria
Sounds simple, right?
Yet the 80% of applicants who have applied and been denied fall into the simple trap of not following the basics of the applications. Getting money can be exciting, so it’s easy to make a mistake. Perhaps it’s inexperience with the complex applications, but no matter what, the 3 foolproof tactics here will help ensure you get more out of government funding.
Before we get into any explanation, the first step to ensure that you are able to optimize your funding options is to actually know about the funding options in question.
In Canada, there are over 1,500 funding sources. These sources vary from government grants, government loans, tax breaks, credits, etc.
To know what you may be eligible for and able to apply to, it is important to read all of the program criteria.
This is the number one foolproof step that will ensure you have more options that you can take advantage of and will mean you are not just applying to something that is not applicable.
Read All of the Program Criteria Carefully
While it sounds simple enough, this first step is what wastes a lot of time and often is the number one reason for applications being denied, especially when a business owner completes the application without reading the steps, rules, and criteria.
So, what do you look for in an application?
Well, a few things. But first, start from the top and read all the way to the end. Every word and every detail counts and may impact your chances of success.
The key points you need to make sure of include:
- Is this program available to business owners in the location that you are in (this may be a suburb, city, or province)?
- Does the program cover a specific industry, and if so, does your business fit into this industry? Keep in mind that businesses can also fit into more than one.
- Can the funding that the program offers be used toward your specific requirements?
- The amount of money that you need: is the agency able to cover it?
If you answered yes to these questions, it is likely that you are a match and can proceed with the application.
Be sure to pay close attention to the rest, consider all requirements, and meet the demands that the application or program asks for.
Break Down Your Funding Needs
To maximize your potential, the next foolproof tactic is to ensure that your funding requirements are clearly outlined and broken down into the specifics of what you need the money for.
How detailed you want to go is entirely up to you, but generally you want to break your needs down into specifics such as:
- Tools and equipment purchase
- Wages or hiring costs
- Training costs
- R&D
- Marketing costs
- Renovation costs
- Etc.
Many small business owners make the mistake of grouping all of the funds together and calling it “startup costs” or “funding needs” and listing out a lump sum.
In most cases, each funding agency will want to fund specific expenses. The more of a breakdown that you have, the better. At all costs, avoid a lump sum ask, as it will often be denied.
For example:
If your business requires $75,000 in startup support, your chances of getting the full amount are much greater by breaking it down and asking for specifics, such as:
- $20,000 for tools and equipment
- $10,000 for marketing costs
- $30,000 for wages and training costs
- $10,000 for website development
- $5,000 for legal fees
By providing this breakdown, you may be able to apply to multiple programs, each funding a different need that you have listed. Whereas, if you just asked for $75,000 from one option, you may get denied.
Asking for less is often better, and by having the breakdown and being able to access money from multiple programs, you stand to get more.
Provide All Needed Information
Lastly, one of the most crucial steps and a foolproof tactic to ensure you follow to help maximize your government funding potential is to provide all needed information that the application asks for.
This may vary from program to program, but often will relate to your business plan, financial statements, a pitch deck presentation, personal documentation and verification documents, bank statements, invoices, etc.
Avoid skipping steps just because you do not have something. Instead, get it done and ensure you apply with all required information. Not doing so will get you denied.