Applying for funding is not a fun time for any business owner. The process can be time-consuming and there are so many documents you need to attach to your application. One of those documents is the budget which needs to outline how exactly the funding will be used. To get your funding, you need to be able to write up a budget for your funding.
If you are asking for funding/ a grant, the people who review your application will want to see a detailed and accurate budget. This will help them understand where the money is going, how it will be spent and in which areas the funding is needed.
As a business owner, you might know why you need funding and where it will go but you need to be able to put it in writing.
In this article, we help you learn how to write up a budget for funding so you can successfully get what you need.
Why Do You Need a Funding Budget?
The purpose of your funding budget is so that potential funders can find out more about why you need funding. It shows that your business has considered the costs of your project or business, how much funding you need compared to other similar businesses and how your funding will be used.
Creating the budget also showcases how financially responsible you and the business are. Lastly, it shows your potential funders that you are worthy of the funding you are applying for.
How to Create Your Budget for Funding
Your funding budget is crucial to your application, so you must create an accurate budget.
Step 1: Understand the Funding Requirements
The first thing you need to know is what the requirements are for the funding you need. Each funder or funding programme has its own requirements which you need to meet before you apply. You also need to align with your funder’s interests and mission. For example, if the funder is looking to fund a business owned by a woman, you can’t apply as a man.
Other factors to consider include:
Funding Amount Requested: You need to be sure of the funding range available from your chosen funder. If anything doesn’t make sense, call the funder directly to find out more information.
Budget Format: Most funders will provide you with a template to outline your budget but sometimes you need to create your own. Before you do that, find out from the funder which budget works best, if there are no specifications, find one that works for you.
Type of Budget: Different funders need budgets for different reasons. Some will ask for the budget of a specific part of the business while others might want the overall budget of the organisation. Matching Funds: Some funders will require that you match the funding you need. This is most common in franchise funding.
Step 2: Estimate Your Costs
Working with your team, you need to gather data that will help you come out with the numbers for your budget. The data and research you do will ensure that your numbers are not inflated and that your organisation doesn’t come across as wasteful.
If need be, you can hire a project manager or give one of your employees the task of being the project manager. The project manager will ensure that everything is accurate and up to date.
Step 3: Showcase What the Funding Will Cover
Once you have all the data and numbers you need for your funding budget application, you can put it into your application. The funding budget should give a detailed description of exactly where the funding is going and what exactly it will be used for.
Having a detailed outline of the funding needs shows your potential funder(s) that you understand your business, their platform and the programme’s goals.
Step 4: Double-check Everything
It’s vital that you double-check every number, detail and the overall budget. No matter how confident and sure you are of your budget, just double-check to make sure everything is accurate.
This should help you create a comprehensive budget for your funding application. Using these steps and tips you can attach a detailed funding budget to your application and increase your chances of getting approved for funding.
