Business Funding Application Mistakes Canadian Small Businesses Should Avoid
Did you know that around 73% of funding applications submitted to government funding agencies by Canadian small business owners are denied due to simply being filled out wrong?
If you have a small business in Canada, or are thinking of starting one up any time soon, this article and these funding application fails and ways to avoid them is definitely something to keep up on.
Finding government funding programs that are available to help your small business in Canada get money sometimes feels like finding the pot of gold at the end of the rainbow. It probably exists, but it is nearly impossible to get to.
GROW YOUR BUSINESS WITH GRANTS & LOANS
Learn about the funding available for your small business. It just takes a second!
The truth is, there are nearly a thousand different funding programs that are available for small business owners in Canada, but you most likely are eligible for only a few.
Because the idea of getting free money from government funding agencies seems so exciting, many people with little to no experience applying for funding will apply without much preparation.
This is where the problems begin.
Top 5 Reasons Government Funding Applications Are Denied
#1: Applying to the Wrong Funding Agency or Program
This is the number one reason why funding is denied by government agencies. Many applicants do not realize that they applied to the wrong program.
Just because a program offers government funding does not mean it is available to every business, in every location, industry, or for every funding need.
Before applying, make sure you are eligible for the program. If you are not, submitting an application will only waste your time.
#2: Not Applying With a Business Plan
Most funding agencies require a business plan. This allows them to evaluate your business and determine whether it is worth investing in.
Applying for government funding without a business plan is similar to applying for a job without a resume, cover letter, or references.
#3: Not Completing the Application in Full
It may sound surprising, but many applications are submitted incomplete and are automatically denied.
This often happens when applicants do not understand certain sections and leave them blank, or fail to include required supporting documents. An incomplete application almost always results in denial.
#4: Applying After the Deadline
Another common reason applications are denied is missing the deadline.
Many funding programs work on a first come, first served basis. Waiting until the last minute can mean that funds are no longer available or that your application arrives too late.
#5: Asking for Too Much Money
Each funding program has specific criteria, including minimum and maximum funding amounts.
While it is exciting to find a program that fits your needs, requesting too much money may reduce your chances, especially if the agency prefers to distribute funding among multiple businesses.
Final Advice
These are only five of the most common reasons funding applications are denied, and they are all avoidable.
Read program descriptions carefully, understand the eligibility criteria and requirements, and only apply once you are confident you meet them.
It is also wise to seek help from professionals who can review your business plan and funding application before submission.