So you got yourself a business idea and you’ve seen so many small businesses get funding and now it’s your turn.

But where do you go? How to these small businesses get funding?

Let us help you make things easier a bit – by giving you the real answer.

Sure if you Google “How do small businesses get funding?” lot’s of things popup!

• 10 ways to finance your business
• 35 ways to fund your small business
• 20 unique ways to get funds now
• etc.

Sure these things work if you have all the time in the world, but “going to the bank and asking for a loan” and “putting business expenses on a credit card” isn’t really a secret; and this shouldn’t be part of ANY LIST.

Assuming you are serious of wanting to start your own business, you need the funding so read on!

How do small businesses get funding?

There is a trick!

No, not a secret on how to secretly get the funds that nobody knows about – but a real path towards success.

So what is the trick?

The trick is, your business plan.

While only 30 % of business owners write some sort of business plan (other 70% don’t), 100% of those who are successful at obtaining funding for their business – had a business plan.

But it’s not just a business plan alone that will do the trick.

It’s very easy to pull together some information, slap it on a piece of paper and call it a business plan.

A properly developed business plan takes time, effort and of course you have to know what funding agencies want to see!

In this article, we are going to focus on government funding programs as the primary source of how to get funding for your small business.

The reason for that is that while it may be “known” that government funding exists, many people don’t take advantage of it. Instead, the typical “I want to start my own business person” will end up going to a local bank to get a business loan – which is generally the first big reason why so many small businesses fail.

Government Funding Programs

There are hundreds of government funding programs and many are exactly how small businesses get funding!

These government funding programs are a result of the Canadian government providing funds to support entrepreneurship and to build a more stable economy.

The funds available often come from various levels of the Canadian government; your local government, provincial government and the federal government.

As a small business owner looking at ways to get your small business funded, all 3 levels of the government should be considered to increase your chances.

The funds provided by the govenrment also come in different forms of funding, which include:

• Grants Programs
• Government Loans
• Tax Breaks/Tax Credits

Each government funding type has it’s own advantages and disadvantages but all are ultimately created to help small businesses get funding.

Let’s take a deeper look at each of the funding program types and how to apply for them!

Government Grant Programs

Who wouldn’t love a grant for their business!

Government grants are programs offered by the Canadian government which are generally refereed to as “the money that you don’t have to pay back”.

The pro’s of government grant programs is that they are in most cases non repayable and is an excellent way for a startup to get the financial help to launch on the right food.

However for small business owners looking to get funding, there are more con’s when it comes to government grants.

#1. Government grants are very difficult to obtain (in comparison to other government finding programs)

#2. Government grants are provided for specific needs

#3. In many cases, to get a government grants (non repayable one), you have to match the funds!

#4. A secret, small business killer!

Let’s take a look at these a bit more.

#1. Government grants are very difficult to obtain (in comparison to other government finding programs)

When comparing government grant programs to any government loan or tax break, they are by far more difficult to obtain.

In most cases if a small business is trying to get funding, even though a government grant is the “most appealing”, it’s often the worst way to go.

That’s not to say not to try – you should try, but keep in mind that if no grants popup, move on quick on to other options.

#2. Government grants are provided for specific needs

Government grants aren’t for everything. In fact, majority of the government grants provided end up being for specifics needs such as to hire staff, training programs, going green, energy, medical research..etc

Sadly, most people starting a business don’t need funds for that but need funds to startup, to pay for equipment/tools, rent, website development, marketing – and these are most of the time not covered by a government loan.

Another way to look at what government grants can be used for is to consider this question – “Will these funds help the economy in any way?” – and no, helping you buy a Tesla car as a business expense is not haling the economy.

#3. In many cases, to get a government grants (non repayable one), you have to match the funds!

A government grant sounds amazing, but not when you have to match the funds in order to get it.

While there may be a few programs that are simply free money, most of the agencies providing the funds will want you to match it.

That’s only fair, don’t you think?

If you are counting only on government grants, this can become a major problem.

#4. A secret, small business killer!

It’s not really, but it can be – if you’re not careful.

Any small business owner trying to get funding for their business and one that is relying only on government grants as the primary source of the funds (without thinking of other options) is destined to fail.

Utilizing multiple avenues of government funding as mentioned above is your best bet towards funding your small business properly.

Government Loan Programs

Much like government grants, the government loan programs are another set of wonderful programs how a small business can get funding!

In fact, government loans are the most offered programs by the government and often are much easier to obtain than a government grant.

While a government loan and a bank loan are totally different, many people still scare of easily from the fact that it’s a “loan”.

The government of Canada has many different loan types from; low interest, no interest, conditionally repayable, government guaranteed loans..etc

Give one of our small business funding agents a call here and learn more about these programs 1-800-288-9691

Tax Break and Tax Credit Programs

A tax break or tax credit program is one of the most avoided offerings by the government. However, billions of dollars are provided each year to those who take advantage!

Why is it avoided you ask?

Well, a business that is trying to figure out how to get funding, needs funding NOW – and not later.

And when it comes to government tax breaks/credits, the funds come after you’ve already spent the funds – think about a tax refund. It’s the same thing.

If you can afford the initial spend on your business – no matter what, take advantage of the available tax breaks and tax credits.

How to apply for government funding programs.

Okay, so hopefully you’ve taken the time to briefly understand the different types of government funding programs that can be used to fund a business, as it’s important to know the differences.

The next step in the process of getting funding for your small business is – learning how to apply!

Applying is easy  – it’s just a bunch of forms to fill out and send it.

BUT; there is A BIG PROBLEM with pretty much all government funding programs.

1. Where are these programs?
2. How do you apply?
3. What is needed?
4. You are on your own!

So now you can imagine why so many people “hate on the govenrment”.

It’s not easy managing billions of dollars, helping every single small business owner across Canada, managing all these different regions, agencies, programs..etc

But let’s skip that for now – because there is a trick for that too!

Let’s just imagine that you found the perfect government program, you got the application and it’s time to apply.

Most government funding programs look for a few things;

1. Are you eligible based on the presented criteria?

2. Does the program cover your location?

3. Are you in the right industry?

4. Does the program cover your specific needs?

5. Do you have a business plan that shows all that is needed?

It’s pretty easy to figure out if the program you are about to apply to is available in your location; it’s easy to figure out of they cover the industry and most of the time the programs are clearly presented and show the criteria that you need to meet. The criteria is usually (be the right age, want to do this or that, have some experience..etc)

But the big 2 are, #4 and #5.

Does the program cover your specific needs?

It’s sort of funny, but trying to find funding programs to purchase a truck for a construction company – no funding exists. You have a cleaning company, and you need a new floor cleaner, funding doesn’t exist. If you’re a tech company and need new computers, there is funding. However there are funding programs for purchasing equipment, for purchasing tools..etc

It’s just the way you search and the way a government categories funding.

Here is an example:

A farm owner from Alberta needs $25,000 to pay for a irrigation system. He looks up programs for irrigation, and zero programs/funds are available. However, there are programs that cover “agriculture and farm” businesses specifically – and that’s how he gets the funds!

So, in this case – the government would say no, sorry there ins;t any funding for that. But if you’re a bit eager, stubborn and want to make sure – you will get it eventuality.

Do you have a business plan that shows all that is needed?

The next big one is the business plan!

Remember that the business plan is the key to it all. The business plan is how small businesses get funding in the first place, so it’s critical.

When you write a business plan for a funding application specifically, there are certain things you need to ensure that you include; not including these things will quickly get your plan tossed out and application denied.

Since every single program or government funding agency looks at “something else’ within a business plan, the best way to ensure your plan is perfect is to include what our experts know works.

So moving on, let’s take a look at what makes the perfect business plan for a funding search!

The perfect business plan!

You’ve come a long way reading this guide on how small businesses get funding, and finally you are here where it really matters – your business plan.

It’s simple really.

If you don’t have a business plan – you will not get any funding.

Why would you? Think about it; would you give money to somebody you don’t know if they don’t want to share with you what they will do with the funds, or if you will ever get it back?

Probably not. The government isn’t any different.

You are an investment!

While every funding agency will want to see a business plan, every single agency does look for something different in a business plan.

Some will want to see your “products and services”, some will want to see your “marketing plan”, others “the financials”..etc It all depends on your needs, on your plan and who is reading the plan.

So the best and most perfect business plan will be the one that answers it all – perfectly!

To help, use the Business Plan Builder Tool and get an expert to review it, help you though it and perfect it.

So here is the most critical piece of information that we can share with you; the trick trick for finding and applying for programs:

The funding needs section of the business plan is A MUST!

If your plan is to obtain funding, you need to explain it.

When discussing your funding needs, 3 things are a must:

What are your needs? (break them down)

How much do you need? (break it down per each need)

When do you need the funds by? (broken down as above)

By answering these questions,  you will be able to apply to multiple programs your business plan will be ready to go.