1. Business Peak District Conference 5th December 2016
How to Find and Win Funding for Your Business
Heather Bradford – Business Advisor
Derbyshire Dales District Council

2. Find the Right Fund
Fit what you want to spend the money on with the correct fund
Check the size levels required
Check the geographic area
Check the business sector
Check the timescales involved
Check what the fund needs in return

3. Which are the right funds for these ?
Broke & Bust Ltd
The business has 5 employees and is a manufacturing business based in Derbyshire Dales. The business has a full order book but is struggling to pay the wage bill each month due to a lack of working capital mainly caused by outstanding and late payment from some of their customers. They are looking for funding to ease their cash flow situation. Which funding stream should they consider ?
Liveinhope Ltd
This High Peak business operates in the service sector providing professional services for business clients. There are currently 2 directors employed in the business but they are looking to grow the business and improve their marketing reach through the development of a more professional brochure web site. The likely cost of this will be in the region of £4,000. The business currently uses other self employed consultants to deliver the services to their customers and are looking to outsource more work in the future. Which funding stream should they consider ?

4. Match the business to the fund
D2 Enterprise Growth Fund
EAFRD
Liveinhope Ltd
Broke & Bust Ltd
Invest To Grow
Leader Fund
SCR Business Investment Fund
NBV Grant for Enterprise
FEAST

5. Answers Broke & Bust Ltd None
Reason - Grant Funding is not intended to support working capital. Grants are not likely to support any business overheads or staffing costs. Short term loan funding may be one option here, or the business could consider factoring the invoice to release funds.
Liveinhope Ltd
NBV – Grant for Enterprise
Reason – too small a project for all the other schemes. The business trades business to business. The funding will consider revenue funding as well as items of capital equipment

6. Which are the right funds for these ?
Bears Bottom Ales
This small sole trader business started in a garden shed is looking to move into larger premises, buy some more equipment and brew larger quantities with the aim of taking on an assistant brewer within the next 12 months. Located in the Staffordshire Moorlands they are looking for help with conversion costs for the building that they are looking to relocate and the cost of the equipment. The total cost of this investment is likely to be in the region of £40,000. Which would be the the most suitable funds for them ?
Designrite Ltd
This established Derbyshire business with 51 staff specialises in engineering design and construction and supplies some of the areas largest transport manufacturing companies with specialist parts. They have recently purchased some land at the side of their existing factory and are looking to install a new production and testing facility in a purpose built extension. The business is likely to create at least 10 additional jobs for skilled engineers. The project is likely to be in excess of £300,000 What funds could they look to apply to ?

7. Match the business to the fund
D2 Enterprise Growth Fund
EAFRD
Bears Bottom Ales
Invest To Grow
Leader Fund
Designrite Ltd
SCR Business Investment Fund
NBV Grant for Enterprise
FEAST

8. Answers Bears Bottom Ales Peak Leader
Reason – Fits in terms of project size and location. Fits with the Leader priorities. They could also consider Feast funding to help towards the equipment
Designrite Ltd
D2 Enterprise Growth Fund/ Invest to Grow fund
Reason – too large a business for EAFRD/Leader. Business sector fits with the priorities of the scheme. Size of project too high for some schemes. Could consider SCR Business Investment Fund if they are located in DDDC

9. Key points to remember
Make the phone call – check with the funders direct whether your idea is suitable
Don’t let the funding criteria influence what is right for your business – it could end up costing you money
Grant funding is never retrospective – you will need to have it all agreed before you can spend the money
There is no such thing as a free lunch…..

10. Application Do’s & Don’ts
Do read the guidance notes
Don’t tell porkies… you will be found out in the end
Do be prepared to put in the time and effort
Don’t spend before the grant is approved
Do talk to the funders – they are there to help you

11. Completing the Application
Give a clear picture of the business and its background
Don’t waffle – keep it to the point and specific but don’t assume they know anything about you.
Be clear in what you are wanting to spend the funding on and why you need the help
Show them how you will meet their “output” requirements

12. Describe your project Which one would you choose ?
Company A
Company B
“We are really busy and need more space to sort out our customer orders. We need some new kit to help us with this and it will make us more efficient. We can’t get orders out quick enough and if we got a grant then this would help us to get the orders out better and we could then take on more work”
“The business has increased it’s turnover from £40,000 to £60,000 in the last year. We wish to build an extension to create 300 sq ft of additional work space and install a conveyor system to make order processing more effective leading to an increase in the speed in which we can process the orders and enable us to confidently increase our production by 20% and take on an additional staff member by March 2018.”

13. Why do you need the funding Which one would you choose ?
Company A
Company B
The business doesn’t have access to fully fund the extension. The repayments on our existing bank loan are manageable and we are able to increase the loan to fund part of the extension, but we would not be in a position to comfortably make repayments on the full cost of the extension without an adverse effect on our working capital.
We can’t afford to do the extension if we don’t get the funding as the business hasn’t got any money. We don’t want to go to the bank for any extra money as we are up to our eyes in debt already. If we don’t get the money we could end up going bust as we cant get the orders out quickly enough and we will lose business.

14. What options have you considered Which one would you choose ?
Company A
Company B
If you aren’t successful in your funding application ?
If we don’t get the funding the business will close and we will lose all 5 jobs
If the amount of funding was reduced?
If we don’t get the full amount we can’t build the extension and get the equipment
If you aren’t successful in your funding application ?
If we don’t get the funding then we won’t be able to proceed with the extension at this current time. We will try to rent some additional space locally to tide us over but ultimately we may end up losing some custom as we can’t deliver the orders in time and this may affect our current staffing levels.
If the amount of funding was reduced?We would look to build the extension but save money by purchasing second hand equipment initially

15. The Financials Make sure your forecasts are realistic
Use your current trading history as a baseline
Do your figures match what you have put in your application ?
Have you got the correct number of quotes ?

16. Summary Allow yourself plenty of time - keep to the deadlines
Don’t try to buck the system – the funding schemes have rules and you can’t get round them
Get help with your application – don’t be afraid to ask
Fit the grant around the business , not the business around the grant