3 Reasons You Didn’t Get Government Funding

You’ve heard the success stories of ordinary Canadian entrepreneurs (like you) who are successful at obtaining government funding. Government grants, government loans, tax breaks and credits, or just help from the provincial and federal governments, but what about you?

Why did this Mississauga, Ontario business owner get $112,780 in government funding, and what about this Winnipeg, Manitoba mechanic shop with his $12,750 in government support. You see the stories, you hear the news, but do you know how to get funding yourself? For your own small business?

Let us share with you the 3 of the main reasons why you didn’t get government funding for your small business in Canada.

But before we tell you the 3 reasons, you have to understand 2 small tiny points.

First point: Government funding, despite a large audience saying “it doesn’t exist”, does exist! In fact, billions of dollars are handed out each year to small business owners across Canada.

Second point: When you apply for “government funding”, you need to expand your knowledge to include multiple levels of the government and not just one “Canadian government”. We will explain this in the 3 main reasons why you failed to get funding from the government below.

Okay, so now that you have an idea that “government funding does exist” and that “the government” is not just one office building, we can get started on the reasons why you didn’t get funded.

Other than the obvious reason of never having applied to funding, here are the 3 main reasons why those who successfully applied, got denied government funding,

Failed Reason #1:

The number one reason why many small business owners who apply for what is called government funding get denied help is due to the fact that they are unaware or un-educated on the exact thing that they are applying to. This is nobody’s fault, but it is just naturally like that.

The government of Canada doesn’t do much to promote the availability of funding programs, or financial support to it’s entrepreneurs. So how is anyone supposed to find help? Or better yet, how is somebody supposed to know anything about government funding, how to get it, where to get it from and if you are eligible.

When the average small business owner finds any information on government funding they jump to the conclusion that they will get funded and simply apply right away.

The fact is that as much as government funding does exist and that there is billions of dollars available, you have to be able to locate the funding available to you.

What does that mean?

There are multiple levels of governments such as local (city), provincial (province) and federal (Canada-wide). This means that when you are searching for funding you have to know the different funding agencies that operate in those areas and the programs that that provide. Since the research process is very time consuming, and your time is better spent working on your business we recommend using our Funding Database which already has the details complied for you. Simply select the criteria that best match your needs and click search. Get access to the Funding Database now.

Once you find the funding agencies that will be able to provide you with funding in the right location, you have to keep in mind that many agencies fund specific needs. Knowing what you need funding for is very important and necessary when looking for funding. As the funding agencies are broken often into industry specific funding needs, you may not always be able to apply to each program.

If you need funding to purchase equipment for your business, you should look for agencies or funding programs that fund “equipment purchase” needs. If a program funds only the needs of “Hiring staff”, the program will not be right for you and you will be denied – unless your need is hiring staff.

To summarize; In order to not be denied funding by the government for your small business, take into consideration that funding can depend on your location, your industry and funding needs.

Failed Reason #2:

The next reason why many small business owners get denied government funding when they apply is due to the lack of a business plan.

Having a business plan shows potential investors and government funding agencies that you are serious about your business, that you have the knowledge and have done the research and preliminary steps towards success. Lacking a business plan is the same as lacking money when going to buy a house – it won’t get you very far with your goal.

The sad thing is that thousands of applications are closed of and stamped “denied” due to the fact that the business plan is not included.

Most business owners skip the “business plan step” simply because it is too long, confusing and difficult to do. A business plan, if outsources can cost anywhere  from $2,500 to $5,000+ to write. This can be a pretty big expense especially for a new startup business. To take advantage of our own Business Plan Builder Tool and get your plan written in no time in a simple to use, step by step, fill in the blanks style tool – visit here.

A business plan will tell the investor or in this case government funding agency who you are, what you need, why you need it and how you will use it. It is a story of your business, and the way you make your presentation can mean the difference between success and failure when applying for government funding.

So before you make the same mistake, get your business plan made.

Failed Reason #3:

The last reason why small business owners who apply for government funding are denied is due simply due to bad timing, your credit score as well as not knowing what you need.

Simple right? Yes it sounds very simple when you put it like that. The fact however is that thousands of applications are denied simply because people still don’t follow the instructions and expect something for nothing (just because).

If you find the funding program you need to apply to and it says “deadline has expired”, do not apply. The deadline has expired does mean that the agency is not taking any more applications. Instead what you can do is create an alert to re-check when the program re-opens again, or find another program.

If you have a horrible credit score and even a bank will not give you a credit card, most likely your chances of obtaining thousands of dollars from the government are very low. Be sure to learn about the program and the criteria and qualifications they are after before you send in your application.

If you see that the program only funds up to $50,000 for purchasing equipment, don’t ask for $150,000 for help renovating. It doesn’t work that way.

When you look to see why you didn’t get funding when you applied to the government be sure to always ask yourself the following questions:

– Did I apply to the right place?

– Did I apply with a business plan?

– Did I meet the criteria?

If you do the above and are still denied funding. Try again!