6 Insider Tips to Winning Small Business Grants You Must Know

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Hey, Dream Builder!

What would you do if a grant could start or save your business? Picture yourself opening that ice cream shop or launching that future SaaS unicorn, all because of the amazing financial support known as grants. It's like the scholarship that made college dreams come true, but for your business.

I remember the time I was awarded nearly $500,000 in small business grants for my startup. Holding that check felt like validation that my business idea was worthy of bringing to life. The lessons I learned came with the ups and downs you'd expect from owning a business. But the feeling of relief when you know your cash flow is not at risk feels like winning the lottery. Except now, we must spend our pennies wisely.

While the prospect of winning a grant is exciting, the paperwork and process can feel overwhelming, almost like cramming for a final exam. But here's the secret: with the right focus and proven strategies, you can improve your chances of winning grants.

Every year, public and private groups collectively award billions of dollars in grants to small businesses. Stick around until the end, and I will share access to a workbook designed to help you not only find grants—that’s just a Google search away—but also to equip you with the tools, knowledge, and mindset to set you up for success.

For now, consider the inspiring story of GiftAMeal. They won a $25,000 grant from Amazon Business by creatively "fighting hunger with photos" and enabling mission-driven marketing for restaurants.

Talk about a market disruptor!

Stories like these fuel my passion, and I hope to inspire you too, providing the motivation and tips you need to enhance your chances of winning your next small business grant.

The Significance of Small Business Grants

I say grants are like scholarships for small businesses to help illustrate the significant impact a grant can make. There a hundreds of ways to use grants, from buying computers to hiring a team to paying for marketing and advertising. I used my grants for tenant improvements when I transformed a historic hardware store into a wedding venue. It's hard to imagine how much money your business will need during its lifespan.

I promise you, it's always more than you think.

Grants can cover a variety of expenses that you might not initially consider. For example, you might use a grant to buy furniture for your restaurant, fund training programs for your staff, or even invest in research and development to prototype your product idea. Each of these uses can greatly contribute to the growth and sustainability of your business.

From my own experience, winning grants made a huge difference. It allowed me to undertake projects that would have been impossible otherwise. When transforming the historic hardware store, the grant funds enabled me to preserve the building's character while modernizing it for new purposes. This kind of project not only benefited my business but also revitalized a piece of the community's history.

I'll be honest, navigating the grant application process can be daunting, but with the right approach, you can improve your odds significantly. If I could take you behind the scenes of the top 6 tips that most greatly impacted my chances of winning grants, it would be these:

TOP 6 TIPS TO WINNING SMALL BUSINESS GRANTS

Granting Hearts: Aligning Your Vision with Funders

Aligning your vision with a grantor’s mission is a smart way to demonstrate why your business is the right fit for their grant. Funders invest in businesses that resonate with their values. Their goal is to make a meaningful impact. Help them understand how your mission is connected to theirs.

Research Tips:

• Identify Key Values: Study the grantor's website, annual reports, and press releases to understand their priorities. For example, The Workers Lab Innovation Fund focuses on worker-centered solutions, emphasizing climate justice and AI innovations that improve working conditions.
• Mission Statements: Read their mission statement to ensure your goals align.
• Past Winners: Understand previous winners' projects to see what types of businesses have been funded.

Adjust Your Proposal:

• Highlight Alignment: Clearly articulate how your business aligns with the grantor’s mission. For example, if applying to The Workers Lab Innovation Fund, highlight how your project addresses worker rights and climate justice or AI-driven solutions.
• Provide Evidence: Use data, case studies, or testimonials to support your claims.
• Be Specific: Avoid generic statements. Speak their language to reflect the grantor’s focus areas.

Let me show you wha I mean. The Workers Lab Innovation Fund, with up to $200,000 in funds,

“envisions a society where all workers are safe, healthy, and secure. Our purpose is to give new ideas for and with workers a chance to succeed.”

That's their mission. When writing your proposal, emphasize how your project supports their goals of climate justice and AI solutions to improve worker conditions. Highlighting this alignment can make your proposal more compelling and increase your chances of winning their grant.

For example, if you’re starting a childcare business, you could write:

“Our project aligns with The Workers Lab’s mission by providing an innovative childcare cooperative that ensures worker safety, health, and security. Founded by a stay-at-home mom, this small business offers flexible, affordable childcare solutions tailored for working parents. By creating safe, nurturing environments for children, we enable parents to work confidently knowing their kids are well cared for. This directly supports worker security and well-being, perfectly aligning with The Workers Lab’s vision for a society where all workers are safe, healthy, and secure.”

Instead of just dropping in a generic mission statement, tailor your proposal to speak the grantor's language, clearly showing why your business is a match made in heaven for their grant.

2. Become Your Best Storyteller

Numbers are essential, but stories are powerful. Use your grant application to tell a compelling narrative about your journey, challenges, and the impact of your business. The Crypto Mom App, for example, was a semi-finalist for the Amazon Business grant. How'd they win? By highlighting their mission to empower women through financial education and community support.

Here are a few approaches you can take when shaping your business story:

Steps for Crafting a Narrative:

• Start with a Challenge: Begin by describing a significant challenge or problem your business faced.
• Introduce the Solution: Explain how your business addressed the challenge or solved the problem.
• End with the Impact: Highlight the positive outcomes and impact of your solution.

Using Vivid Language and Emotional Appeal:

• Descriptive Language: Use descriptive and engaging language to make your story come to life.
• Emotional Connection: Create an emotional connection by sharing personal experiences and the journey of your business.

Before-and-After Example:

• Before: Briefly describe the situation before implementing your solution.
• After: Highlight the significant improvements and positive changes that occurred as a result.

Every year, big businesses like Amazon, Verizon, and JP Morgan Chase actively promote major grants for small business owners. No matter which grant you're applying for, remember that some grants may require a more data-driven or technical approach, depending on the funder's focus and criteria. However, even in more technical applications, incorporating elements of storytelling can help make your proposal more engaging and memorable.

3. Phone-a-Friend: Leverage Your Network

Seriously. Stop winging it and throwing grant applications like you're throwing dice. If you're going to invest the time, energy, and effort, take the time to do it right and get the support you need to build your confidence. Don't be shy. Your network wants to support you.

Identifying and Approaching Mentors:

• Network Assessment: Make a list of potential mentors within your professional and personal network.
• Research Backgrounds: Understand their expertise and how it aligns with your needs.
• Reach Out: Write a respectful and concise message explaining your request for feedback and why you value their input.

Template for Asking for Feedback:

• Introduction: Briefly introduce yourself and your business.
• Purpose: Explain why you're seeking feedback and the specific areas where you need help.
• Gratitude: Express your appreciation for their time and expertise.

Get meaningful feedback from mentors and experienced peers who've walked the path before you. They're out there; you must find them. Now is not the time to think, "Oh, well, I probably wouldn't have won anyway." You'd be surprised how many people miss the deadline, didn't know about a grant, or gave up before they got started. You must follow through. Or, you'll never know. And we both know, that's no fun.

Benefits of Diverse Perspectives:

• Broadening Insights: Different backgrounds and experiences provide a wider range of insights and suggestions.
• Identifying Blind Spots: Diverse perspectives can help identify potential issues or areas for improvement that you might have overlooked.

Leverage your network to help catch errors you might miss and provide valuable suggestions. I remember one time, I misspelled the name of my own company. My mentor caught the glaring error real quick. We laughed, but how embarrassing 😳. It's better to be off the mark with those you know than the judge's panel when everything is on the line.

TIP: Right now, create a list of your inner circle—your ride-or-die group. Now make a wishlist of those you look up to and would love to have in your inner circle as mentors. Imagine your network like you're the CEO and they are your Board of Directors. Who's at the top of your list?

4. Show Me the Dough: Demonstrate Financial Responsibility

I can't emphasize enough the importance of keeping squaky clean bookkeeping records of your business money. We'll get into this in more depth in a future blog. For now, know that grantors want assurance that their funds will be used wisely. Provide clear, detailed financial statements and show how you have managed funds in the past.

Highlighting your fiscal responsibility builds trust. For example, GiftAMeal demonstrated their ability to scale efficiently, which helped them win the Amazon Business grant for nationwide expansion.

Essential Financial Documents:

• Balance Sheets: Show what your company owns and owes at a specific time.
• Income Statements: Summarize the money your company made and spent over a period.
• Cash Flow Projections: Predict your future money situation to show how well you can manage funds.

TIP 1: Use charts and graphs to illustrate key financial data, making it easier to understand at a glance.

TIP 2: Explain why the financial information is important. For example, show how keeping a good cash flow (having enough money coming in and going out smoothly) has helped your business grow and take on new opportunities

Think of your financial story as the first handshake with your grantor, building trust and improving your odds of winning.

5. Impact Factor: Showcase Your Community Impact

Be prepared to clearly articulate the positive impact your business has or will have on the community. Use concrete examples and measurable outcomes. Sunny Brook Menagerie, for instance, also won an Amazon Business grant by showcasing the therapeutic benefits of their animal rescue programs for children.

Gathering and Presenting Impact Data:

• Quantify Impact: Use numbers to show how your business helps the community, like how many jobs you've created or how much waste you've reduced.
• Surveys and Feedback: Collect stories and feedback from community members or customers to show how you've made a difference.

Using Testimonials and Case Studies:

• Real Stories: Share real stories from people who have benefited from your business.
• Visual Content: Use photos or videos to make your stories more interesting and impactful.

Connecting Impact to Grantor’s Mission:

• Alignment: Show how your community impact matches the grantor’s goals and values.
• Future Goals: Explain how the grant will help you improve your impact in the community.

Think of your community impact as an extension of the grantor's mission. You are a connected messenger, carrying forward shared values and goals. By demonstrating this alignment, you strengthen the bond between your business and the grantor, increasing the chances of receiving their support.

6. Detail Detective: Be Meticulous with Application Details

Follow the grantor's guidelines to the letter. Missing or incorrect information can result in immediate disqualification. Create a checklist or grab mine to ensure you’ve covered all bases, from formatting requirements to necessary documentation.

Create an Application Checklist:

• Document Requirements: List everything needed, like business plans, financial statements, and letters of support.
• Formatting Guidelines: Understand how the grantor wants the submission formatted (e.g., font size, margins, page limits).
• Submission Deadlines: Include all important deadlines to make sure you submit on time.

Common Mistakes to Avoid:

• Incomplete Applications: Double-check that all sections are filled out completely.
• Ignoring Guidelines: Ensure that you follow all instructions provided by the grantor.
• Typos and Errors: Proofread carefully. Then have someone you trust proofread it again.

Think of your application like your inviting your favorite celebrity over for dinner. No detail goes unnoticed, and everything must be perfect. By being organized and following all the instructions, you show the grantor that you are responsible and meticulous. This careful attention to detail is like a chef's kiss when applying for a grant.

You're Closer to Your Goals Than You Realize

As you refine your grant application strategy, remember that you're closer to achieving your goals than you might think. Every step you take, from aligning your vision with funders to showcasing your community impact, brings you nearer to securing the funding your business needs.

Stay Inspired and Encouraged

Getting a small business grant can change everything for your business. By aligning with the grantor’s mission, telling a compelling story, leveraging your network, and showing financial responsibility, you just increased your odds of winning. Look, grants aren't about just getting that bag. Grants are about building relationships, showcasing your impact, and continuously learning and improving.

Grab Your Workbook!

Earlier, I promised I'd share access to a workbook designed to help you not only find grants but also equip you with the tools, knowledge, and mindset for success.

Here you go. Check out our guide, "Thrive with Grants: A Workbook for Women & Minority-Owned Businesses." This comprehensive workbook provideds a detailed roadmap to help you navigate the grant application process with confidence and clarity.

Hey, Dream Builder! Follow Along for More Insights:

As a founder, former CEO, and mentor, I write about the entrepreneurship journey based on real-world experience. Everything from ideation, funding, and exits, to the ups and downs in between. Stick around, and I'll reveal the scary parts no one talks about—those red flags and pitfalls you hope to avoid. I'll share tips, stories, and resources to help you navigate your journey. As your mentor, I'll point them out for you. We'll protect your dream and look out for your best interests together.