When applying for business grants, several common mistakes can hinder your chances of success. Understanding and avoiding these pitfalls can significantly increase your likelihood of securing funding.

1. Inadequate Research & Preparation

A lack of thorough research is one of the most frequent missteps in the grant application process. It's vital to fully understand the eligibility criteria before applying, ensuring your business meets all the requirements not only at the time of application but throughout the entire project duration.

For example, some grants require businesses to maintain a specific level of local shareholding. This can become problematic for companies, especially well-funded tech startups, that undergo multiple equity funding rounds, diluting their ownership structure and inadvertently violating grant conditions by the time the claims process concludes.

2. Incomplete or Inaccurate Applications

A well-structured and detailed project scope is crucial. Be clear about your project’s objectives, how it will be executed, and the expected results. Avoid vague descriptions and ensure that all required documents, such as financial statements and business plans, are included and accurate.

Errors in cost planning can lead to major complications – if the budget information is inaccurate, the grant offer may be based on wrong information, leading to underfunding and/or other complications during project execution.

3. Overlooking Key Evaluation Criteria

Each grant comes with specific evaluation criteria, and failing to meet these can severely damage your application. A common mistake is including non-eligible expenses, such as off-the-shelf software like HubSpot CRM, in the project budget for grants like the Enterprise Development Grant (EDG). Misunderstanding what qualifies for funding can result in significant shortfalls, leaving your business to cover non-eligible expenses out of pocket.

4. Failure to Define Quantifiable Outcomes

Grant applications often succeed when the outcomes are clearly defined and quantifiable. Laying out measurable impacts allows both you and the grant evaluators to understand the project's significance. For example, if your project aims to improve productivity, you should calculate specific outcomes, such as time saved per process or improvements in staff efficiency, before and after implementation. This quantitative approach makes it easier for Grant Officers to assess the potential benefits of your project.

5. Underestimating Overall Time Commitment

Many applicants fail to realize the full extent of the time commitment required – not only during the application process but throughout the entire project lifecycle, including post-approval obligations. Successful grant management requires careful planning and resource allocation. Many applicants underestimate the time needed for project execution, reporting, and maintaining progress updates, particularly during auditing or claims reporting periods.

Missing these obligations can not only result in the withdrawal of funds but can also damage your business's credibility, affecting future grant funding opportunities.

6. Overlooking Post-Application Processes 

​Contrary to popular belief, your engagement with the grant agency doesn’t end when the application is submitted. It is not uncommon for Grant Officers to follow up with a deluge of questions that require in-depth clarification within a tight timeframe. If the deadlines set by the Grant Officer are unrealistic, you must be able to communicate your situation clearly and request for a reasonable extension.

Applicants who manage the process independently often become overwhelmed by other equally pressing business responsibilities and may miss important follow-ups, risking the termination of their application. It is worth keeping in mind that Grant Officers have every right to terminate an application if timelines are not met. Therefore, relying on their courtesy to accommodate delays is not an approach you want to take.