Let’s face it; financing is the biggest obstacle facing any modern small business startup.
If you’re an aspiring entrepreneur that’s had their Eureka moment, there’s no greater frustration than knowing a lack of capital will stop you from achieving those goals. However, there’s no need to start waving the white flag just yet as a government grants and funding may be possible.
Absolutely. Furthermore, there are hundreds of small business grants available from the government each year. They are designed reduce the outlay and support the growth of your company, removing a great deal of pressure from your shoulders and enabling you to focus on actually building a successful venture.
Government grants for startups are built to support the economy and create new jobs while also supporting entrepreneurs turn their dreams into reality. In total, there are over 200 different types of startup grants, applying to everything from saving money on premises to covering the costs of equipment purchases.
The benefits of seeking funding are clear. In many cases, you don’t need to pay interest or sacrifice equity in the company. It’s even possible that you won’t need to pay the money back. These outcomes are almost impossible when looking at private funding and traditional routes.
Startup business grants can cover the costs of various items associated with running a new company. They can included reduced rates or cash awards. The vast majority fall into one of three main categories, which are:
Direct Grants – A direct grant is when the government provides money that can be put towards a range of startup essentials ranging from premises to equipment, training to reaching new markets. Applicants can apply for up to £500,000, although businesses seeking this additional source of funding can expect to put in up to 50% of the grant’s value. So, if applying for £500,000, you’ll need to put in £250,000 to give you an overall capital of £750,000.
Equity Finance – A number of schemes offer the opportunity to reduce income tax incurred on business investments by up to 50% or £100,000. This type of support is open to businesses with fewer than 25 employees and applicants can utilise it for the first two years of running the company.
Soft Loans – Soft loans aren’t grants as such because the money does need to be repaid. However, the terms of the loans are far kinder than traditional business loans, offering lower rates and better durations. Startups using this type of government-backed support also gain access to free mentoring.
Within those categories, there are various types of relief including but not limited to;
There are additionally specific grants for specific demographics including; female entrepreneurs, under 30 entrepreneurs, over 30 entrepreneurs, social influencer entrepreneurs, unemployed entrepreneurs, and more.
The attraction of grants is huge, but the government doesn’t have endless amounts to hand out. Before making an application, then, it’s vital that you do two things:
Prove to the government that the business can be trusted with the grant;
And show that it is a better prospect than the alternatives.
To give yourself the best chance of securing a government grant for startup businesses in the UK, it’s imperative that you follow a winning plan of action. There are several steps to consider on the journey to successful funding, including:
Approaching the grant body to gain insight into your chances of approval,
Understanding the grant objectives and writing an application that satisfies them,
Building a business plan that shows the grant body that they have a reason to believe in you,
Detail the planned usage of the grant funding to show you have a plan of action,
Check that you have the funds needed to match the grant requirements.
By handling the process in style, you’ll be able to find the most appropriate grant for your business startup needs. Applying for the wrong type is likely to result in rejection, which will signal a waste of your time and resources.
Applying or government grants is daunting, time-consuming, and a task that is best left to an experienced head. Acquiring the support of Audeo instantly gives your hopes of success as we can match your business ideas to the right type of grant and complete the application in style.
We pride ourselves in helping business gain access to the grants needed to get their ventures up and running. Take the first steps to following in their footsteps by calling our friendly agents today.