Did you know that around 73% of funding applications submitted to government funding agencies by British small business owners are denied due to simply being filled out wrong?
If you have a small business in the UK, or are thinking of starting one up any time soon, this article and these funding application fails and ways to avoid them is definitely something to keep up on.
Finding government funding schemes that are available to help your small business in the UK get money sometimes feel like finding the pot of gold at the end of the rainbow – it probably exists but it’s near impossible to get to.
The truth is, there are nearly a thousand different funding schemes that are available for small business owners in the UK- but you most likely are eligible for only a few.
But because the idea of getting “free” money from government funding agencies seems so crazy, any chance that a person with little to no experience applying for funding has, they will jump the gun so to speak and just apply.
This is where we start seeing the fails.
Here are the top 5 reasons why the government agencies deny funding applications for the simple, avoidable reasons:
#1: Applying to the wrong funding agency/scheme.
This is actually the number one reason why funding is often denied by the agencies, and people rarely realize that they applied to the wrong scheme.
Just because a scheme exists that provides “government funding”, it doesn’t mean that it provides funding just to anybody, in any location, in any industry and for just any funding need.
When applying for funding schemes be sure to look for schemes that you are actually “eligible for”. If you are not, sending in your application will simply just be a waste of time.
#2: Not applying with a business plan
Most funding agencies ask that you have a business plan prepared. After all this is how a funding agency will determine your business, and if it’s worth investing or not. Applying for a business funding grant or loan from the government without a business plan is similar to applying to a job without a resume, cover letter or any references.
#3: Not completing the application in full (and providing all required documentation)
It may sound funny, to fill out a funding application and not complete it, but it does happen to many times and the government agencies simply deny it. Often it happens that the person applying simply doesn’t understand a certain application section and they think that it it’s okay to leave it blank. Or others don’t know what to provide in terms of supporting documentation so they leave it off; but it’s one of the worst things that can be done on a application – it makes it incomplete, which automatically is a big fat denied stamp across the application.
#4: Applying past the deadlines
Another important reason why many application get instantly denied is that a person applies last minute, or past the deadline. As a funding agency announces funding, the sooner you apply the better your odds are. While funding doesn’t always get handed out until the “deadline date”, it’s possible that funding from various agencies works differently – first come first serve. Leaving your application to the very last minute could result in no money being available or left over; or your application reaches the agency too late and past the deadline, which results in a denied stamp.
#5: Asking for way too much money
Finally getting your chance to ask for the money you need; great! But the fact is that every funding agency and funding scheme has it’s own criteria; including minimum funding amounts, maximum funding amounts and total funding available. It sure gets exciting to find a funding scheme which you may be able to get money from, but asking for too much money may not be the best thing to do, especially if the agency feels that it can share that money over multiple businesses in lesser amounts.
While these are only 5 of the top reasons why funding applications get denied, they are easily avoided. The simplest and easy to follow advice we can provide you with is to read the scheme description in full; understand the criteria and the requirements you need to meet; and only then, apply.
Be sure to get extra help from professionals, somebody who can review your business plan and possibly even your funding applications before you send it out to the funding agency.