Posted By: Staff Editor In: Entrepreneurship To be successful in any business you must first know your own strengths and weaknesses and accept the help when and where you need it the most.
Any successful business plan for grant funding needs to highlight the barriers and risks involved with a project as well as the expectation of great success. Many times potential grant seekers are too optimistic with their business plans and they omit, not intentionally, the downside to their proposal.
It is important for any business plan for grant funding to include any unexpected cost in materials, labor, marketing, and loss of revenue due to delays. Whether you are seeking funding from the SBA, venture capitalist, or a government grant, the committees that review these plans are very knowledgeable about what the numbers mean. Underestimating the true cost of a business start up will not impress those who are determining whether to fund the project and will ultimately lead to rejection.
Another common mistake with business plans for grant funding is the unrealistic overestimation of first year gross revenue and yearly revenue growth. A business that starts with little allocation for marketing cannot expect to be flooded with business as soon as they open their doors. The same is true with projecting a 100% percent revenue increase every year for the first 5 years. It is important to do the research necessary to determine the real expectations of revenue growth.
Real risks are involved with any business venture and any oversights to these factors could put a projects funding at risk. Not disclosing potential and obvious cost overruns or inflating expected gross revenue will not only doom the business in the long term, but will also jeopardize the opportunity of any grant funding to begin the project.
There have been many individuals in the food and beverage industry, arts and entertainment, and inventors who were very knowledgeable about what would make a good business or new product, but were not necessarily good business plan writers. However many of these businesses have received the grant funding needed for their projects because they sought out help with writing their business plans and grant proposals.
To be successful in any business you must first know your own strengths and weaknesses and accept the help when and where you need it the most. For information about grant writing and business plan programs that can help you start your own business please visit http://www.grantsformoney.com
Kevin J. Riley is a business and grant consultant with over 20 years business experience and the host of the website http://www.grantsformoney.com
