8 Steps to Get Your Business Ready for Funding Applications

Without startup funding, it’s hard for a new business to get off the ground.

Luckily, there are countless people and organizations ready to support your idea financially—if you approach them properly. Small business grants, venture capital, and startup accelerators are among the many options you can pitch to for potential funding—but we’ll dive deeper into those options in another post.

Before you apply for funding, you need a plan. Investors and grant providers will look for certain things to determine whether your business is worth their investment. This list covers the core steps you need to take before applying for funding opportunities.

Some of these steps will take longer than others. Be realistic about your timeline and prioritize these tasks to build a strong foundation for success.

1. Develop a Business Plan

Above all, the first thing you need is a solid business plan. This document will guide your business operations and represent your company when applying for funding. Whether you’re applying for grants, loans, or investments, funders will expect to see a business plan.

Your business plan should demonstrate:

• Your mission statement and goals

• An overview of your industry

• A market/competitor analysis

• An operating plan (how you’ll execute your business)

• A marketing plan (how you’ll attract customers)

• A financial plan (how you’ll fund your business and generate profit)

Make sure your plan uses clear language and includes actionable objectives, research, and data to support your ideas. This document is also useful for future funding applications, as it ensures consistency and professionalism in your pitches.

2. Evaluate Your Strengths and Weaknesses as an Entrepreneur

While assessing your business’s strengths and weaknesses, you should also take stock of your own capabilities. As an entrepreneur, you’ll wear many hats, but it’s crucial to know where you shine and where you need support. Ask yourself:

• Are you good at sales or does that require effort?

• Are you detail-oriented or more of a big-picture thinker?

• Are you skilled in financial management or writing?

Identifying your strengths and gaps will help you determine where to focus your energy and where you might need external help.

3. Create Honest Financial Projections

Before applying for funding, you need to know how much you’re asking for, where it will go, and what it will return.

• Map Out Your Budget: Include required expenses, potential expenses, and estimated revenues. This should cover at least the first 2–3 years.

• Include Cash Flow Projections: Investors want to see how your business will manage cash flow and generate returns over time.

There are many tools available to help you with financial projections, such as LivePlan and BDC’s Financial Planning Tool.

4. Ensure Your Personal Finances Are in Order

When evaluating your funding application, many organizations will assess your personal financial history. Be proactive by checking:

• Your Credit History: Ensure it’s accurate and up to date.

• Your Assets and Collateral: Highlight any personal investments in the business.

If you have financial concerns, work with a professional to address them and demonstrate credibility as a business owner.

5. Identify Your Funding Needs

By this point, you should know how much money you need to get started. Be realistic about the minimum amount required to achieve your business objectives and consider whether you prefer funding (grants, investments) or financing (loans).

6. Research Relevant Funding Opportunities

There are all kinds of funding programs available in Canada, so focus on those most aligned with your goals:

• Government Grants: Use the Business Benefits Finder to identify grants and programs that suit your needs.

• Innovation and Technology Grants: Look into opportunities like the Ontario Centre of Innovation.

• Diversity Grants: Programs such as the Black Entrepreneur Startup Program and the Women Entrepreneurship Fund support underrepresented groups in business.

• Sustainability Grants: Many grants now support green technologies and sustainable practices. Research these opportunities if they align with your business model.

7. Refine Your Pitch

Your pitch is how you sell your idea to funders. It should clearly and confidently articulate the unique value of your business.

• Prepare a short, snappy pitch (1–2 minutes) and a longer version (3–5 minutes).

• Rehearse until you can present it naturally.

If you’re struggling, revisit your business plan’s mission statement for clarity.

8. Present Yourself Professionally

Your presentation matters. Whether meeting in person or virtually, you need to represent your business in the best light.

• Dress appropriately and maintain professional mannerisms.

• If meeting virtually, ensure your background, lighting, and sound quality are clear and professional.

Final Thoughts

Preparing your business for funding applications takes time and effort, but these steps will give you a strong foundation for success. By completing these tasks, you’ll be well-equipped to approach funders with confidence and secure the support you need to bring your vision to life.