Many individuals walk into the grant application process unprepared. This can harm a business’s chances of success, with less than 5% of SMART grants being granted in 2022. It is important to have a clear idea of the direction you want your company to go in, particularly for Research and Development (R&D) projects where the thinking needs to go beyond just a good idea. Strong and structured applications with detailed answers will put a business in a good position when coming up against other applicants. Helen Steel from Steamlion Consulting, a Berkshire-based firm specialising in SME funding and growth strategies, knows just how important it is to have a clear vision when applying for a grant. Helen discusses what grant readiness means and the questions business leaders should consider before taking the plunge.
Grant readiness in the business context, especially for R&D projects, goes beyond the foundations of an idea. Business owners must ensure their company is well-positioned to not only secure a grant but also to use it effectively to achieve successful outcomes. Grant spending accounts for 14% of the UK government expenditure. It can be used for several purposes, including providing financial subsidies to deliver activities and outcomes, supporting government policy initiatives, and funding research, development and innovation.
Here are some critical things to consider before writing up an application:
- Does your business model work?
- Have you made sales, generated revenue or achieved customer traction?
- Does your business show viability and potential for growth?
These are all important building blocks to achieving success. Business owners need to be able to answer these clearly and effectively before using valuable resources to apply for grants. In some instances, it might be appropriate to postpone grant applications to allow time to reflect and work on the business model.
- Explore the funding mix
Before applying for a government grant, explore and consider other options. These might include startup loans, business loans, angel investors and venture capital. Often securing one of these can enhance your business and mitigate the need to apply for a grant. When officials go to look over your grant applications, you will need to have shown how your business can continue to grow and succeed post-grant project funding.
- Clear research & development project plan
A clear R&D project plan includes well-defined objectives, methodologies and expected outcomes. These must go into detail, alongside realistic timelines and measurable milestones. Meanwhile, it is important to identify potential risks and mitigation strategies.
- Team capability
Businesses need to look inward and reflect. They need to consider whether they have an experienced team with relevant skills to execute the plan of action if the grant application is successful. Organisations can benefit from a proven track record in project management and R&D.
- Market demand
Show evidence of market demand for your potential product or service in the application. Demonstrate a real understanding of the competitive landscape and how you are a clear thought leader in your space.
- Commercialisation plan
Grant reviewers look for evidence that the applicant can rapidly commercialise the business’s product or service. There must be a clear path for how the company can make a profit post-grant. This can include potential partnerships or channels to show strategic thinking.
- Match funding capacity
Grant funding is not designed to be the sole income stream to elevate an organisation. Applications must show an ability to provide the required matching funds. This is a requirement for many grants and provides reassurance that the business has a clear source of continued funding post-grant.
- Wider impact potential
Finally, the business needs to demonstrate how the R&D project aligns with the grant competition scope and objectives. This look at the wider impact of the grant must include clear economic, social or environmental benefits for the public.
So, is there a right time of year to apply for a grant? More than anything, a business leader needs to ensure they tick all the above boxes before delving into the application process. In 2024, March and May have been an incredibly busy time for applications, with September and October also seeing a big wave of budding business owners applying for grants.
If being grant-ready means you can confidently show funders that their investment in your R&D project is likely to yield successful outcomes and deliver the intended project, then the best time to apply is when you have all that ready and aligned.
By Helen Steel, Managing Director at Streamlion Consulting