Grant Format: A Guide to Writing a Grant Proposal for Small Business Owners

One of the struggles of small business owners in Nigeria is limited finance. It is not easy for a small business owner to borrow loans from banks for their business. If you do borrow loans, they come with lots of interest and collateral, which will leave you with little or no profit. 

One way for small business owners to get funds and resources is through grants, but unfortunately, many small business owners in Nigeria have little or no knowledge about it.

Getting a grant is not easy, which may be why many people don’t see it as an option. Apart from being difficult, it’s a war of thongs—it’s not just you applying for it; you also have to go the extra mile to be considered.

As a small business owner who is in the same shoes as you and can feel the pain, in this piece, I will take you through the journey of writing a grant format that will be considered.

How to Write a Grant Proposal 

Here are the steps to take when writing a grant proposal;

1. Identify the grant and understand its purpose

If you want to start a new business like fish farming, you won’t just go to the pond and start selling fish. You need to understand the type of fish you are going for, the environment where the fish will grow, the materials and the required equipment, the people you will sell to, etc. 

So, before applying for a grant proposal, understand the one you are applying for. What are the requirements? Does it align with what you are doing? Do they accept the kind of venture you are proposing? Are they venturing for startups or growing companies? And many more questions. 

So, look for grants that align with your business goals. Check their eligibility criteria and ensure your business fits like a glove.

Imagine proposing to expand your fashion designing brand when the grant is for tech startups. You don’t want that, right? So, please know the grant proposal you are applying for.

2. Find out the requirements 

Now, just as you wouldn’t go to the market without knowing what you want to buy, you shouldn’t start writing your grant proposal without gathering all the necessary information about what is needed. 

You’ll need the following;

• A business plan: A solid plan that outlines your business goals, target market, competition, and how you intend to use the grant money.

• Financial statement: Don’t let the significant terms scare you. Simply put, this is a breakdown of your earnings, expenses, and profits.

• Market research: This proves that you’ve done your homework on the market demand and competition.

Gather all necessary information that needs to be documented so that you won’t be tongue-tied when asked questions.

3. Write a compelling executive summary

Most small business owners get this area wrong. This is the category we call pitching. Here, you tell your grant prospect what your business is all about. Your executive summary should include the following; 

• Introduction: Start with a brief and exciting introduction. Make your introduction interesting and engaging. Explain why you started the business, the passion that drives you, your mission, and your vision.

• Business goals: Outline your business goals clearly and explain what you aim to achieve with your business in the short and long term.

• Problem statement: Describe the problem your business is solving. For example, if you sell Zobo drinks, you can explain how your product is helping to reduce the intake of fizzy drinks, which cause high calories and increase sugar levels, and how the Zobo drink helps to reduce this at a cheaper and affordable price.

• Need for the grant: Explain why you need the grant. Be specific about how the grant money will be used and its impact on your business.

• Why you should be considered: Highlight your business’s unique strengths and achievements. Explain why your business is a worthy investment and how it aligns with the grant’s objectives.

Read also: 9 Steps to Get Small Business Loans in Africa.

4. Write a detailed project description

In this section, provide a comprehensive description of your project or business. This is where you detail how you plan to use the grant funds and what outcomes you expect. Your project description must include the following;

• Project objectives: Clearly state your project’s objectives. These should be specific, measurable, achievable, relevant, and time-bound (SMART).

• Project activities: Describe the activities you will undertake to achieve your objectives. Include a timeline for these activities to show you have a well-thought-out plan.

• Expected outcomes: Outline the anticipated outcomes of your project. How will the grant help you achieve these outcomes? What impact will this have on your business and community?

• Evaluation plan: Explain how you will measure the success of your project. Include any metrics or key performance indicators (KPIs) you will use to track progress.

5. Write your budget

A well-prepared budget is crucial for your grant proposal. It shows that you have thought through the financial aspects of your project and can manage the grant funds responsibly.  Your budget should include;

• Detailed budget breakdown: Provide a detailed breakdown of how you will spend the grant money. If you are buying new equipment, write it down. Write down everything you need for your project, including little things like water. 

• Justification for expenses: Justify each expense category. Explain why each item is necessary for the success of your project. If you sell Zobo drinks, explain why buying the solar freezer is essential.

• Additional funding: If applicable, mention any additional funding sources or contributions you have secured. This shows your commitment and ability to leverage other resources.

Read also: Financial Management: Key Strategies for Small Businesses. 

6. Include all supporting documents

Supporting documents add credibility to your proposal and provide additional information that can strengthen your case. They include;

• Letters of recommendation: This includes letters of recommendation from partners, community leaders, religious leaders, customers, or other stakeholders who can vouch for your business’s impact and potential.

• Resumes of key personnel: “No man is an island.” Provide resumes of the key personnel involved in your project. This shows that you have a competent team to execute the project.

• Legal documents: If you have any relevant legal documents, such as business registration certificates, tax documents, or licenses, attach them.

Read also: 10 Warning Signs of Business Failure. 

7. Review and revise

Once you have completed your draft proposal, review, revise, and correct it to ensure it is clear, concise, and compelling. Make sure you do the following;

• Proofread: Check for spelling and grammatical errors. Ensure your grant format is error-free. This will show your level of professionalism.

• Get feedback: Seeking feedback from colleagues, mentors, or other business owners who have experience with grant proposals will give you insight into fine-tuning your grant format. 

• Check alignment with grant criteria: Double-check that your proposal meets the grant’s criteria and guidelines. Make any necessary adjustments to avoid violation.

8. Submit your proposal

Finally, submit your proposal according to the grant’s submission guidelines. Ensure you meet the deadline and provide all required documentation to avoid rejection.

• Submission guidelines: Follow the grant’s submission guidelines carefully. This may include formatting requirements, submission methods, and deadlines.

• Confirmation: After submitting, it is important to confirm that your proposal has been sent. This will ensure that your application has been received and is under consideration.

Final Words

Applying for a grant proposal will be easy if you follow these steps. Always remember the quote, “To fail to prepare is to prepare to fail.” Put this at the back of your mind whenever you start something.

With proper preparation, clear communication, and alignment with the grant’s proposal, be rest assured that all others will fall into place, and your chances of securing the financial support you need in your business will be high.

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