Applying to get government funding for your small business in Canada is not too difficult; however you do have steps to follow, otherwise risk being denied the funds.
While there are many different reasons why somebody may be denied funding for their business, the main reasons for not getting government funding would include:
- Applying without a business plan
- Applying without specifics of what you need funding for
- Applying to a program you are not eligible for
- Applying too early, or way past the deadline
- Mistakes on your application
When applying for government funding, it is always a good idea to ask for help.
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Most funding agencies will have great support, but your focus should also be on the applications themselves, as these will often contain the steps and instructions on how to complete the applications correctly.
So let’s take a moment now and review the main reasons why an application, or government funding, may be denied and the steps to avoid them.
Applying without a business plan
Your business plan is the key to a successful funding application. It is the one key document that you will need to ensure that your small business can get government funding.
A properly prepared business plan will explain all that a funding agency needs to know about your small business and will allow them to make a much better decision in terms of approving the funds you need.
Applying without a business plan is one of the most common mistakes that business owners make. It is a sure way to get denied funding and to have your application refused, especially if the business plan is one of the key requirements listed on the application.
While doing a business plan may seem extremely difficult, it is important to dedicate some time to get this done; otherwise you may not be seen as serious, and your business may not be given the attention it deserves.
A business plan can be created using a Business Plan Builder Tool to produce a plan that is suitable for most Canadian government funding agencies. This tool is step-by-step guided, allowing you to simplify the business plan creation process and get it done efficiently.
Alternatively, if you have the budget, you can pay an expert to write your business plan for you.
No matter what, do not apply for government funding without a business plan.
Applying without specifics of what you need funding for
Applying without a business plan is bad, but having spent all this time building a business plan and ensuring it has all the right information, yet forgetting to explain to a funding agency what you need funding for or how much, is much worse.
Any plan or funding application that does not clearly state what you need funding for will be assumed to not require funding. This will result in your government funding applications being denied.
A few tips to ensure you explain your funding requirements:
- Ensure you ask for the right amount of funding based on your initial one to six months of costs that you are unable to cover on your own.
- Break down your funding needs into specifics. The more specific you are about what you need the funds for, the better your chances are of getting the funding you need.
- Do not ask for a lump sum of funding. Instead, focus on a detailed breakdown, which can also help you obtain funds from multiple funding options.
Most people who are denied funding due to not breaking down their requirements make similar mistakes, either not providing a figure for how much is needed or not providing a breakdown of how the funds will be used. Being unclear in your explanation will result in a denial of funds in most cases.
Applying to a program you are not eligible for
Much like not providing a business plan or clearly explaining your funding needs, another common mistake business owners make when applying for government funding is applying to a program they are not eligible for.
There are over 1,500 different funding programs. Not all programs are suitable for everyone, and many programs focus on three key areas:
- Your location
- Your industry
- Your specific needs
It is a good idea to apply only to programs for which you meet the criteria.
As you start your funding search, ensure that the program is available in your location, covers your industry, and supports the specific funding needs outlined in your application.
Government funding agencies are specific and not interconnected. It is important to carefully read the criteria and requirements to ensure you do not apply to the wrong program, which could result in a denial.
Applying too early, or way past the deadline
Another common mistake with funding applications is applying too early before the start date or applying too late after the deadline.
Some, but not all, funding agencies have deadlines.
There are two types of deadlines: the start date, when applications open, and the end date, when the program closes.
It is important not to apply before the start date, as your application may be ignored. Applying after the deadline will result in your application being automatically denied.
Mistakes on your application
The final reason funding applications are often denied is due to mistakes on the application itself.
Many applicants make mistakes by not reading the requirements carefully. Any of the previously mentioned issues can result in a denial of funding.
Simple mistakes such as misunderstanding what to include, what to avoid, how to apply, or when to apply can all negatively affect your application. Be sure to read the application thoroughly from start to finish before completing it.
It is never a bad idea to ask for help. Your goal is to secure funding, so take every possible step to ensure your applications are completed correctly and accepted.