Common Pitfalls to Avoid When Applying for Business Grants: Insights from a Grant Consultancy

Real Inbound Consulting, we understand the transformative power of business grants. They can propel companies toward innovation, expansion, and heightened competitiveness. However, navigating the application process can be challenging, with numerous potential pitfalls that can derail your success. Based on our extensive experience, here are some common pitfalls to avoid to increase your chances of securing business grants.

1. Inadequate Preparation and Research

​One of the most frequent mistakes we see is insufficient understanding of eligibility criteria. It is crucial for businesses to ensure they meet all the necessary conditions before applying. This goes beyond just the application stage; many companies are unaware that certain conditions, like maintaining a minimum percentage of local shareholding, must be upheld throughout the entire project duration, not just at the point of application.
For instance, we had a client who applied for a grant with their local shareholder holding just above the required 30%. However, midway through the project, their local ownership was diluted due to a new round of equity funding, and their local shareholding fell below 30%. When they attempted to claim the grant, they encountered significant issues because they were no longer a 30% locally-owned company at the time of the claim. This is a common oversight, particularly among well-funded tech companies that frequently undergo equity rounds. They often mistakenly believe that meeting the shareholding requirement at the time of application is sufficient, not realizing the need to maintain it throughout the project until the claims process is complete.

By thoroughly researching and understanding these nuances, we help our clients avoid such pitfalls. Our consultancy emphasizes the importance of ongoing compliance with grant requirements, ensuring that your business remains eligible throughout the project lifecycle.

2. Incomplete or Inaccurate Applications

A well-detailed project scope is essential. Applicants should be explicit about what their project entails, how it will be executed, and the expected outcomes. Avoid vague descriptions and ensure all necessary documents (financial statements, business plans, etc.) are included and accurate.

For example, we had a client who applied for a grant to purchase a system that would automate their processes. The project involved multiple components, including hardware, AI-powered software, and consultancy services. However, during the application process, they made some typographical errors in their costing details within the grant portal. These mistakes, although unintentional, led to confusion and complications when their grant offer was calculated, potentially based on incorrect amounts. Such errors can significantly affect the outcome, as the final offer may be based on inaccurate information, leading to underfunding or other issues.
To prevent such situations, we assist in developing detailed project plans and budgets, ensuring every section of the application is meticulously completed and supported by necessary documentation. Accuracy in filling out these details is critical, as even small errors can have significant consequences.

3. Poor Cost Planning and Budgeting

Accurate cost planning is crucial. Applicants often underestimate or overestimate project costs, and sometimes they include items that are unnecessary or not eligible for grant support. For instance, we had a scenario where a client included non-qualifying items in their budget, thinking they might be covered under the grant. However, these items were not considered by the grant officer, and as a result, the client had to bear the cost of these items without being able to claim any grant support for them.
To avoid such issues, we ensure that budgets are realistic and detailed, aligning with the grant’s funding scope. We guide our clients in identifying and justifying each cost, demonstrating a clear link between expenses and project goals. By focusing only on eligible and necessary costs, we help our clients avoid unnecessary financial burdens and ensure that the grant funds are used as effectively as possible.

4. Ignoring Evaluation Criteria

Understanding and aligning your project with the grant's objectives and evaluation criteria is critical. We tailor applications to highlight how projects meet these goals. For instance, some companies fail to notice that certain off-the-shelf solutions, such as Hubspot CRM, are not eligible for funding under the Enterprise Development Grant (EDG).
We had a client who wrote an entire proposal detailing how Hubspot could benefit their company and save time. However, since Hubspot is not a qualified item for the EDG, they ended up wasting significant time and space in their proposal. In the end, the cost of Hubspot was excluded from the grant, leaving them without the support they expected. This scenario underscores the importance of thoroughly studying the evaluation criteria and focusing efforts on eligible and qualified solutions that align with the grant's objectives.

By providing a comprehensive business impact forecast and clearly demonstrating how the project meets the grant’s objectives, we help our clients avoid such pitfalls. Understanding the grant's evaluation criteria ensures that your proposal is both relevant and eligible for funding, maximizing your chances of success.

5. Lack of Quantifiable Outcomes

Defining measurable outcomes is crucial to securing grant approval. Without quantifiable metrics, it becomes challenging for grant officers to assess the impact of the proposed project. For example, in projects aimed at improving productivity, it's essential to calculate specific outcomes, such as the time saved per process and the impact on staff efficiency.

We encountered a scenario where a client failed to define these quantifiable outcomes. They did manage to quantify productivity savings, i.e. how many hours per week would be saved per staff member per operational process - before and after the new system being implemented. As a result, the grant officer found it difficult to approve the grant, as there was no clear way to gauge the magnitude of the project's impact compared to the grant amount requested.

This is where management consulting becomes critical, and it’s why we integrate management consulting into our grant consulting services at Real Inbound Consulting. We don’t just help clients fill out forms; we study their processes in depth to justify why a project can lead to significant time savings across various departments and staff. By providing clear, quantifiable metrics—such as time saved per process and overall efficiency gains—we make it easier for grant officers to understand the value of the project, thereby increasing the likelihood of approval.

Without this blend of management and grant consulting, writing a compelling grant proposal that stands up to scrutiny is extremely challenging. Our integrated approach ensures that your proposal not only meets the criteria but also presents a strong case for the grant, backed by robust data and strategic insights.

6. Underestimating the Time Commitment

One of the critical aspects of successful grant management is the proper allocation of time and resources, not just for the application process but for the entire duration of the project, including post-approval responsibilities. A common pitfall we’ve observed is applicants underestimating the time required for various stages, particularly for project execution and subsequent reporting for claims.
For example, we had a client who secured a grant to develop a new technology platform. The project was extensive and required meticulous planning, execution, and regular updates to the grant agency. However, the client initially underestimated the time needed to manage these tasks, leading to delays in project milestones and inability to complete the project within the stipulated grant supportable period.

At RIC, we emphasize the importance of realistic time management. We first helped our clients to apply for an extension with the grant agency, and got it approved. From there, we worked with the client to map out a detailed project timeline that accounts for all remaining stages, from further development to deployment and preparation of final reports for claims submission. By allocating adequate time for each phase and ensuring timely communication with the grant agency, we help avoid future delays that could jeopardize the grant’s claims success.
Moreover, we stress the importance of understanding and adhering to post-approval requirements, such as regular progress updates and final audits. Failing to meet these obligations not only risks the withdrawal of grant funds but also damages the credibility of the applicant, potentially affecting future grant opportunities.

7. Ignoring Post-Application Processes 
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Engagement with the grant agency doesn’t end when the application is submitted. The grant officer will often have follow-up questions or require additional clarification, and it is crucial to adhere to their timelines. If a deadline set by the officer is not realistic, it's important to communicate this and request more time rather than simply missing the deadline. Failing to respond promptly can have serious consequences.
We’ve seen instances where clients, managing their applications independently, became too busy with other company matters and forgot to respond to the grant officer in a timely manner. This led to their applications being withdrawn due to missed deadlines. Grant officers have the right to terminate an application if timelines are not met, and relying on their understanding after the fact is a risky approach.

At Real Inbound Consulting, we emphasize the importance of active and ongoing engagement with grant officers. We help our clients manage these timelines effectively, ensuring that all queries are addressed promptly and thoroughly. By maintaining clear communication and adhering to deadlines, we help prevent applications from being withdrawn and ensure that the grant process moves forward smoothly.