How to Get Canadian Government Funding For Your Small Business

Canadian government funding for your small business is available. You’ve probably heard about individuals getting a grant or a government secured loan, a tax credit..etc; this is government funding. In fact, the government of Canada hands out billions of dollars in funding each year to new and existing small businesses across the country.

So what is stopping you? How do you get Canadian government funding for your small business? Where do you look?

Before getting into that it’s important that you know the mistakes that most people who end up not getting funded make – so that you can avoid them.

Canadian government funding mistakes small businesses make:

When starting a small business, mistakes are always present. Mistakes shouldn’t hurt; they may delay the process but ultimately you learn from the mistakes in order to make better decisions for your small business and move on. Unless you end up making the mistakes that are critical in the early stages such as the mistakes that force you to not get Canadian government funding for your small business. Especially if these mistakes can be avoided.

✅ Applying to get Canadian government funding for your small business too late

✅ Trying to apply without a proper business plan

✅ Applying to every single program offered

✅ Not asking for a proper amount (too much, too little or no amount at all)

✅ Applying incorrectly (wrong program, past deadline, application mistakes)

✅ Thinking there is no funding available

These 6 small govenrment funding mistakes have been very known the destroy the chances small business owners who didn’t follow them.

While some of these mistakes are worst then others; let’s review each situation to ensure you as a small business startup don’t repeat them.

Applying to get Canadian government funding for your small business too late

Starting a small business requires A LOT of planning before hand.

The last thing you want to do is spend the money you have into your new startup without knowing your financials. While this may seem obvious don’t assume you know, instead create your business plan which clearly shows your estimated financials and how much money you have available, how much money you need and what you need it for.

By preparing your financials you will know before hand when and what you will need the money for. This way you will have plenty of time to search for funding, apply for funding and wait to get the funding.

❗❗❗ FACT: A typical application process to get Canadian government funding for your small business isn’t too difficult, the search, application and the wait period can be anywhere between 2 weeks to over 6 months. Be sure to give yourself plenty of time.

Trying to apply without a proper business plan

Having a well developed business plan for your small business in order to get Canadian government funding is actually the first step you should take.

Many people make the mistake of searching for funding first in order to figure out if their business could get funding – this is simply the wrong way to go about it and a quick way to get no funding.

A proper developed business plan will answer the questions that potential funding agencies will have about your business, what your intentions are with your business, what your growth strategy is like – weather to trust and invest in you or not and also they will see your financials in order to get a better idea of what you need funding for, how much you need and by when.

Your business plan is the 1st step to successfully get Canadian government funding to your small business.

Here is a success story of one of our members who thanks to their business plan was able to secure government funding for their business.

Applying to every single program offered

Funding is available. “Yay!!! Let’s apply to every single funding program and surely we will get something”

Applying to every single program offered by the Canadian government is just plain stupid.

Think about it like this; you have a headache and a need some medication to help make it go away. When you go to a pharmacy, you look for the medication which is for headaches, you get it and done. You don’t walk into an isle and just take any medication you see – it may not be right for you, it may not be for head aches and it’s just plain stupid.

So why would somebody want to apply for every single funding program?

Government funding programs are separated by location, by industry and by funding needs.  Certain funding programs only fund women, some individuals age 18 to 30, some are just for seniors, some are just for certain provinces, some are just for specific industries or just for specific funding needs..etc

Funding is based on those factors and when you apply to a program without verifying what the factors are, chances are that you are just waiting your time.

Not asking for a proper amount (too much, too little or no amount at all)

Applying for funding can be overwhelming.

How much do you ask for? Do you ask for exactly what you need? Maybe more? Less? Maybe don’t ask for any money and let the government figure it out?

When trying to get Canadian government funding for your small business, your business plan if it’s properly done will tell you how much funding you need and what you need it for.

It is always recommended to ask the government agency for exactly what you need. While it may not be 100% accurate, the funding agencies usually round up or round down to give you what they believe is appropriate based on certain factors.

Asking for too much will simply be denied. The same applies to not providing an amount – the government is not able to figure out how much you need unless you ask.

If you ask for too little and you get funding, it’s not always a bad thing (unless you need more money).

❗❗❗ FACT: Once you’ve been approved by a funding program it is much more likely you will be approved by the same program again.

Applying incorrectly (wrong program, past deadline, application mistakes)

Similar to applying without a business plan or applying to any program, applying incorrectly to a funding agency will get your application denied and your business not funded.

When applying to get Canadian government funding for your small business, it is important to not make apply to the correct program which you as a business owner meet the requirements.

Each funding program has it’s own set of rules, regulations, criteria and requirements to follow. Failing to abide by these rules will get your application denied.

Other factors such as applying too early, or past the deadline and making application mistakes could get your application denied.

It is always recommended to have another person or a 3rd party review your applications. Consider contacting CanadaStartups experts to get this done

Thinking there is no funding available

And finally, a HUGE mistake to ensure you avoid is thinking there is no funding available for your small business.

Chances are funding is available – but if you don’t try to find it, you are out of luck.

Across Canada, government funding programs exist (in fact there are over 1,000 funding programs). These programs are available for various purposes such as to help you startup, to expand, to hire and train staff, to purchase tools and equipment, to pay for marking..etc Many of these programs are available in each province, so it’s always important to get your business plan done and to seek professional help searching these programs if you’re not 100% sure you can do it on your own.

You can always use the Funding Database offered by us here to start your funding search now and locate funding programs that are right for your small business. This is in fact one of the fastest ways to find appropriate programs in order to get Canadian government funding for your small business.

Get Canadian Government Funding For Your Small Business

Now that you know the mistakes that others made which ruined their chances of successfully getting government funding, it is your turn.

Keep in mind to build your business plan which clearly shows your funding needs, search for programs which are appropriate to your needs and apply on time. Prior to applying, be sure to have your applications double checked and you are good to go.