Business plan for a grant: What it is and how to write it

A business plan for grant is a document that is required by grantors to provide your business with grant funding. It must demonstrate that your business goals align with the grantor’s mission and that your business project is feasible. Writing a business plan for a grant entails writing the executive summary, explaining your company overview as well as detailing a market analysis.

Types of business plan for grants include government grant business plan, startup grant business plan and nonprofit grant business plan. A grant proposal is a request for funding submitted to grant providers. A business plan for a grant is 15 to 20 pages long and it takes three to four weeks to write one.

What is a business plan for a grant?

A business plan for a grant is a document written to help your business win funds by having your grant funding application approved. A grant is a form of funding awarded to a business to carry out projects with no obligation for repayment. Grants require strict compliance and are restricted to specific business models hence you need a convincing business plan.

A business plan for a grant should convince the financiers that the objectives of your business align with the grant’s purpose. A  grant business plan should clearly outline how the grant funds will be used and how the business will measure and report on the progress. 

How to write a business plan for a grant

Writing a business plan for a grant is a step by step process that requires you to take time and research. Research will help you understand the grantor’s goals as well as the grant’s requirements. Use clear and concise language and follow a logical structure so that the grantors can find information about your business easily. Start by defining your business’ objectives and explain how they align with the goals and mission of the grantor.

Acknowledge potential risks and come up with plans to mitigate them to show your ability to adapt to change in the market conditions. Include the components of a grant business plan which are an executive summary, company overview, market analysis, products and service description, sales plan and financial projections. Business plan writing process should be followed accordingly.

Write the executive summary

The executive summary is an overview of the entire business plan and highlights key aspects of your business concisely. Include the mission, vision, target market and competitive advantage of your business.  For example if your business is seeking a grant for expansion, you should include information about a successful track record, growth potential and customer base. Detail what your business does, who it serves as well as its leadership.

Explain the company overview

Explaining the company overview entails giving detailed information about your business such as its history, legal structure and ownership. Be specific about the problem that your business solves as well as the customers it serves. Go into detail about the market you have chosen and why your business fits in it. Highlight the strengths of your business such as your strategic location or team of experts which illustrates your competitiveness in the market. 

Detail the market analysis

Detailing the market analysis includes a study of the target market, market size, growth trends and competitor analysis. Explain your total available market and your estimated share of the market. Highlight the setbacks that you may face and how you will overcome them. A detailed market analysis allows you to understand the market better and identify unique business opportunities. Your grantors want to know if you understand your market well. 

Describe the product and service

List the products and services that your business offers and explain their features in detail. Outline how they benefit your customers, product lifecycle, cost of production and how they are going to be distributed. Include intellectual property identified with your products and services such as trademarks, copyrights, patents and licenses. You should also explain why your products and services are superior to those of your competitors as well as how they differ.

Write out the sales plan

Writing out the sales plan involves explaining how you will market your product. Have some branding ideas on hand such as company logos, business cards or brochures that will position your product or services for sale. Choosing how you will market your product will depend on your target audience. Determine if they spend most of their time online or reading a newspaper so that you know where to put your marketing efforts. This will help you decide if you will use online marketing such as social media ads or paid print ads.

Detail and explain the financial projections

Detailing and explaining the financial projections helps to demonstrate the viability of your business model. Financial projections forecasts the future financial performance of your business in terms of revenue, expenses and cash flows. Include detailed financial projections such as income statements, balance sheets as well as a cash flow statement. Income statements detail  how much profit your business is going to make. Outline financial projections for at least three to five years of the lifecycle of your business. 

Types of business plan for grant

There are different types of business plan for grant key among them government grant business plan, startup grant business plan, nonprofits grant business plan as well as research and development grant business plan. 

A government grant business plan 

A government grant business plan is used by a business to access funds provided by the government. Government grants are aimed at fostering economic growth and innovation by creating jobs within specific industries. Your government grant business plan should stand out by being persuasive and highlighting the strengths of your business. Your goals and objectives in the plan should be tied with various policies that the government is currently focusing on.

A research and development grant business plan 

A research and development grant business plan is designed to assist your business get a research and development grant. This type of grant will support your business in developing new products and services. If your business is engaged in research and development, costs related to market testing, prototyping and experimentation will be covered. A research and development grant business plan enables you to tap resources which will accelerate your innovation efforts giving your business a competitive edge.

A startup grant business plan 

A startup grant business plan is tailored to support your business and get financial assistance to launch your new business venture.  Startup grants help you cover initial expenses such as purchase of equipment and operational costs at the early stages of your business. A startup grant business plan offers valuable guidance for new business owners. 

A business plan for non profit grants 

A business plan for non profit grants aims at winning non profit grants which are awarded by charitable organizations to support non profit organizations’ initiatives. Non profit organizations do not aim to make a profit but address social or community needs. Your non profit grant business plan will facilitate grants to help your organization finance its projects, programs as well as operational expenses. It should lay out your goals and plans if you successfully secure a grant.

What are the different types of business plans offered by experts? 

The different types of business plans offered by experts include startup, strategic, SBA and non profit. Other types include bank loan, internal, international, immigration, partnership and grant business plan. Businesses in different situations require different types of business plans.

Types of business plans are categorized based on audience, purpose and scope. Based on the audience we have internal, SBA, grant and bank loan business plans while those based on purpose include nonprofit, international, immigration,partnership and international business plans. 

How is a business plan for grant related to writing a startup business plan?

A startup business plan is a type of business plan whose primary purpose is to put forth the steps required to get your business up and running. Such steps include determining the financial requirements for your startup. 

A startup business requires funding to cover costs such as operational costs and purchase of equipment. At this point, a grant business plan comes in to help you access the much needed financial resources for a successful startup launch. Grants do not need to be repaid hence reduces the financial burden for a business in its initial stage of development.

How is a business plan for grant related to grant proposal?

A business plan for grant should be accompanied by a grant proposal during grant application. A grant proposal is a funding request that your business will submit to grantors.Grant proposals have almost similar elements to a business plan for grants, the difference being that a grant proposal is more detailed to convince the grantors of the value of your business project.

A grant proposal tells a compelling story showing the potential  impact of your project and attracting the funder’s interest. The structure of a business plan for a grant is a bit different from a grant proposal. A grant proposal starts with a cover letter which captivates the grantor to delve into the rest of the proposal. You must also first submit a grant inquiry letter before submitting a grant proposal.

If the grantor positively responds to your inquiry, they then give you the go ahead to submit your grant proposal. Both a business plan for grant and a grant proposal aim at creating clarity around your business vision, build confidence in your business strategy as well as showcasing the competence of your business to execute your project.

Is grant proposal part of business plan writing services?

Yes, a grant proposal can be offered as a business plan service. Business plan writing services are services that provide guidance, support and expertise in crafting business plans. Examples of business plan writing services include business plan consultation, business proposal writing, business plan creation and business plan development. Other business plan writing  services include business plan translation services as well business plan implementation guidance services. Business plan writing services are offered by expert business plan writers who are found online.

How long is a business plan for a grant?

A business plan for a grant is typically 15 to 20 pages long. However, the length will vary depending on the specific requirements of the grant provider. Other factors influencing the length of a business plan for a grant include the type and size of your business. A plan for a small business will be shorter than that of a large business while the complexity of a business may warrant additional detail hence making the business plan longer.

How long does it take to write a business for a grant? 

It takes three to four weeks to write a business plan for a grant. Factors such as the size of your business and research requirements affect the time taken to write the plan. The larger and more complex your business is, the longer it will take to write your grant business plan. Research takes time and hence more time will be required to complete writing your business plan.