How to Write a Grant for a New Business Project

Organize information for each grant section before writing.

Depending on whether your new business project supports a nonprofit or for-profit company, there are different types of grants you can apply for. For-profit companies can gain grant funding through federal government programs such as the Small Business Administration's Small Business Innovative Research Program and Federal and State Technology Partnership Program program, from state-sponsored business development programs and from investors. Nonprofit companies can seek grants from local and national foundations. To get grant funding, you need to complete a proposal that conforms to the requirements of the funding organization.

Things You'll Need

• Grant application
• Grant checklist

Instructions

1. Read the grant instructions carefully. Create a grant template that includes each section in the application to guide you in collecting information and constructing the proposal. Make notes on a grant checklist for formatting guidelines, required length and how and when to submit.

2. Write a statement of the problem your new business project solves or the reason you believe that profits will result from selling your product or service. Collect data to back up your assertions.

3. Organize a list of project objectives and detailed tasks or methods needed to accomplish your project. For projects that require development, place tasks along a time line and identify the achievement of each project objective.

4. Complete a business plan that shows market understanding and information from your profit analysis, competitor assessment and plans to achieve other funding in the future. Include in the business plan background information on your company, including the credentials of key contributors. For product-development grants, list any intellectual property belonging to your company.

5. Create a budget that shows direct and indirect project costs, with backup information on salaries, benefits, overhead and vendor quotes.

6. Complete all sections of the grant proposal. Have the draft reviewed to ensure correct grammar, spelling, readability and compliance with proposal guidelines.

7. Write a one-page cover letter to the funding organization with a brief summary of your proposal and contact information. Submit the cover letter and grant proposal as required in the solicitation materials or by agreement with potential investors.

References

• Non-Profit Guides: Full Proposal Components
• Small Business Innovative Research: Solicitations Proposal Checklist
• Pepperdine University: Editorial on Writing a Business Plan to Attract Investors

Resources

• Small Business Administration: FAST Program
• Small Business Innovative Research: Information
• Foundation Center: Grant Guides