How To Write A Professional Grant, Proposal or RFP

A lot of small businesses might not realize it, but there is a lot of free money out there (Yes! I said free) but only if you know how to write a professional proposal.

By doing a quick search, you might be surprised at the types of grants and other sources of income that are available for you and your business.

Many young business owners don’t realize grant and proposal writing can sometimes mean the difference between your business prospering or failing. If you haven’t considered the type of grants out there, then you are leaving a lot of money on the table.

Protip:

You don’t have to be a non-profit organization or a public service company in order to get money for your organization.

For example, there are a lot of money for start ups and businesses under the five-year mark. I was running an advertising agency and we got funding for a number of different business initiatives. In fact, we hired our first employee because of a government grant.

A part from grants there are also RFPs (Request For Proposals) that a lot of government organizations and larger corporations require you to write to bid on a contract.

Of course, you just need to know how to write a great professional proposal. These proposals are difficult to write and take a certain skill set, different from a lot of different types of writing. They are also time consuming and it can seem like a waste if you don’t get the grant.

But like any good skill it’s worth investing in. 

You can get funding for:

• Research
• Hiring
• Equipment
• Marketing

In addition to grants, there are also banks and institutions that will loan businesses money at very low interest rates. These institutions may be helpful because they usually offer some mentoring support to help your business grow to the next level. These organizations will help you with cash flow, marketing and HR, among other things.

Finding grants is usually not your priority – nor should it be, but it can be just as important as finding a new customer or new partner. If you’re looking for money, it can be difficult to know where to look and how to go about it. This post will demystify the entire process and help you write those proposals for you.

We are going to go through all the stages of proposal writing so even if you’ve never written a proposal in your life, we will show you exactly how it’s done so you can be success in your grant writing process.

With any successful proposal you must identify the pain and how the funding will fulfill the gap. 

How will this money impact your:

• Your organization?
• Your new employee?
• Your customers?
• Your community?

You must first clearly describe a specific problem. It can be something lacking in your company that prevents you from serving your customers better, it can be something in your community or area of interest, or it can be a need a government or company has.

If this is your organization’s first attempt at applying for a grant, the entire process will benefit your organization. I guarantee by going through this process, you’ll learn something about your own company and how you can operate better, regardless of whether you write a successful proposal or not. It will force you into thinking about your core values, your mission statement and your positioning. 

Of course, your end goal is to end up with a well-conceived proposal that lays out a strategy to address the problem, as well the funding to pay for it.

Technical Requirements

The technical requirements section may be one of the longest sections of your proposal, depending on the type of work and complexity because there are a lot of variables to work out that will impact the scope. The more details you can provide up front, the better the estimate. Some companies specialize only in certain technologies, while others don’t work with them at all.

Protip:

You should find out the technical requirements of the project at the beginning to know if you can work within them. For example, if the company needs you to write the code in Ruby Rails and nobody on your team can write in that language, it’s best to move on to more suited projects. 

First, you have to ask yourself if you had a specific amount of money – say an extra thousand dollars – how would that impact your business?

What would you spend it on to move the dial forward? If the proposal is for your own company, think long and hard about how you would spend additional resources. Would you be able to spend it on Facebook advertising? Maybe employee training? Or maybe you would use it to better your employee experience to attract better people.

If you’re a non-profit, you might think about the problem a little differently but at the core it’s the same: where would that money best serve its purpose?

Step 1: Find The Funding Sources

A lot of business owners make the mistake of just applying for anything and everything that they can lay their hands on but before you spend the time and effort really stop and think about what you would do with that money if you got it.

Now that you’ve decided on what type of funding you want, you need to find the resources to complete the project. Locating funding requires time and careful planning. Most funding is a lengthy process and can take from several months up to a year.

Google Is Your Best Research Tool

The first step to find appropriate fundraising is (of course) Google. You’ll find plenty of amazing resources that you probably didn’t even know existed. If you’re stuck on ideas simply type “in grants for” and let Google’s predictive text do the rest.

Look at the “Also Searched for” bar for more ideas. Google will generally point you in the right direction. There will be some good information and questions you never thought about asking in the bar, alerting you to opportunities you never knew existed. 

Ignore the ads at the top of your search inquiry – at least at first as they are people trying to sell you something. Right now you’re on a fact finding mission.

Most of the resources will be government oriented like www.grants.gov, the central source for locating and applying for up to 900 programs from 26 federal grant-making agencies. If you’re in Canada like I am, check out this LINK which will give you a lot of useful information. In the United Kingdom, check out this LINK.  

All these types of grants can be a little daunting and overwhelming, especially at first if you don’t know what you’re looking at. The general government websites aren’t always the most user friendly and it can be difficult to find what you’re looking for. If you do feel like it’s a little too much then narrow down you search to grants in your city. These grants are generally easier for you to obtain.

Ask Other Businesses or Organizations

Once you’ve done your Google research, you should ask around to like-minded individuals to see if they have applied for grants or not. They should be able to provide you with some great insight about some dos and don’ts. Each grant or proposal is different and it’s wise to listen to those who have gone before you. It will save you a lot of headache down the road. Once you get a feeling for how a certain grant works, you’re in a much better position.

For example, most government organizations are required to ask for a Request For Proposal (RFP) for any job over a certain amount of money, even if they know who they want to ultimately hire.

If you stumble across the RFP but don’t know that the government strongly favours XYZ company, you might waste all your time putting together a proposal for them when your time is probably better spent elsewhere.

Networking events aren’t just to acquire customers but to learn and grown as a business. If you’re at a networking organization at you’re at a loss for what to say, ask your fellow entrepreneurs about grants and see what they say.

Protip:

There are banks and organizations that can help you get the funding you need. In general there are more options in Canada including Futurepreneur and the Business Development Bank of Canada, both amazing organizations. In the United States there are definitely not as many resources but check out this LINK.

 In the United States, one of the best banks for small businesses is Wells Fargo. They have many loan programs and perks for small businesses. Don’t be afraid to shop around and ask for discounts. Banks want your business and they are usually willing to negotiate.

There are some pros and cons to all these organizations and which is right will depend on your situation. However it should be recognized that these organizations provide loans no grants. While grants are better, sometimes your situation might call for a low interest loan.

Research What Others Have Done

There is no need to reinvent the wheel. If possible try to get your hands on old successful proposals, especially if they have been submitted to the same company or organization. Study them closely and learn what made them successful.

A lot of organizations make their winning proposals public. Study these proposals forwards and backwards. Pay close attention to the language they use and the wording. Use them as guides for how to write your proposals, what information to include, and what style and terminology is preferred. You’ll find most proposals have a simple Hemmingway-like prose, straightforward and to the point.

Start Forming Relationships With the Right People

Internet research will only take you so far. Sooner or later you’re going to have to talk with real people. As with most things, it’s more about who you know than what you know. By forming relationships with the right people, both government and private, you can get the inside scoop about what is really going on.

Protip:

The gatekeepers are all busy people but most of them are happy to answer your questions about their particular grant. When it comes to government contracts and grants, many of them are even mandated to help you become successful. In fact, depending on the type of grant or RFP they usually must answer any questions within a certain time period. If they don’t, then they have to extend the deadline. (This isn’t always the case so read the fine print for the rules and regulations.)

Grant announcements usually list a contact person. This person sometimes has different job titles but it is usually the program officer who manages the process. Arrange to meet the person, preferably in person, or by phone, if possible. So few people actually do this, you’ll be surprised at how helpful they are.

Program officers are usually experts in the application process and may be knowledgeable about your type of project. Let them know about your organization, its accomplishments, and the type of grant you’re seeking. Confirm that your project or company is eligible for funding. Ask any questions you have about the grant announcement and clarify anything you don’t understand.

A lot of government organizations and business councils put on workshops about how to successfully apply for grants. You should take a couple hours out of your day to meet face to face with the people who are actually in charge of the grant.

If you’re not sure your company is qualified for a particular grant either email or phone the person who has the contact information. If your request is outside the scope of their funding, they may be able to point you toward the right source.

They might even introduce you to contacts at organizations with which they have a relationship. An introduction from someone the reviewer trusts lends you credibility. If at all possible meet with the gatekeeper in person. They should be able to provide you with some good contacts.  

Questions to Ask When Reviewing a Funding Source

Once you find a promising funding source, learn as much as you can about that organization and its particular funding program. Read the organization’s website site to find out:

• Do you want to work with this organization?
• Does it typically fund organizations and projects like yours?
• Do you qualify for a particular grant?

Step 2: Coming Up With The Problem Statement

For a proposal to receive funding, the reviewer must be convinced that funding your program or company will have a positive and measurable affect, that the money will be maximized and not wasted.

As with all grants and proposals start by identifying a need – a problem statement. Many people think they understand what a problem statement is, but this is the basis of everything that will come after. You may need to do extensive research on the history of the underlying problem, previous solutions that were implemented and potentially failed and why your solution will make a difference.

It could be a complex problem such as you need funding to research what X chromosome is in Alzheimer’s Disease; or as simple as you need a camera to offer high-quality photography to your portfolio. Everything you add to your proposal should be related to your problem statement.

Define the Problem or Situation

Involve the stakeholders in developing a clear, concise description of the problem or situation. Do not be satisfied with the surface level answer. You may want better, faster computers but how will that impact your clients, your staff moral, and the various other aspects of your business?

Usually more than one meeting is necessary to arrive at a consensus that satisfies most of the stakeholders. This process may take some time, but the effort will be worth it and will make your proposal that much stronger. Once people agree on the problem, the rest of the workflows more smoothly.

For RFPs, the problem may be evident such as the Environmental Ministry may need a new website. However, don’t be fooled into thinking you can skip this process. The ‘whys’ ‘hows’ and ‘what’s are more important and are usually buried within the RFP. For example, what does the Ministry hope to achieve by building a new website? How will a new website help fulfil the Ministry’s mandate?

Most importantly read the grant guidelines more than once to ensure that you don’t miss anything. Then follow the requirements of the funding notice or application to the letter. Your guide for what to include or not to include in your document is the request for a proposal or grant application.

Protip:

Give the reviewer exactly what they ask for and if you can add any value added service be sure to include that as well. For example, maybe your company has implemented a better way of training which will cut down on costs. 

Investigate Possible Causes of the Problem

Even if the cause of the problem may appear obvious to you, seek formal agreement from as many stakeholders as possible on the cause.

The amount of detailed evidence you will need to present to a grant-making agency will vary. And even if there is agreement on the cause of the problem, you may still need an investigation to formally document the cause and to quantify as many factors as you can, depending on the grant’s requirements.

When describing the problem, avoid technical terms and jargon wherever possible. Instead, use layman’s terms. All stakeholders should clearly understand what is being said.

Involve All Stakeholders

To develop a successful proposal, it’s important to involve all of the stakeholders. A stakeholder is anyone affected by, or with an interest in, the project. If you’re looking at buying equipment for your company, you may just need to check in with your staff to see what type of equipment they prefer, but if you’re ask is a little larger than you may need to talk to several groups.

If you’re studying Alzheimer’s Disease, you’ll need to talk to the patients, their family, the doctors, nurses, hospital administration and probably one or two more groups.

Seek involvement and consensuses from as many people and groups as possible. While you don’t necessarily have to come to some sort of agreement, the fact that you have considered everybody’s point of view and looked at the proposal from all angles will greatly increase your chance of success.

Step 3: Clearly Describe Your Solution

With your key stakeholders clearly describe your solution. What will be done, and by whom? You need a clear description of how you plan to achieve your desired outcomes, with a timeline and detailed work plan.

What will occur as a result of your project? How will a situation improve? If the problem is giving at risk youth meaningful employment, what skills will the youth learn? How will their lives be improved? With the youth be able to take those skills and use them in other jobs? Again, look at the problem from every angle and include the solutions.  

Identify the Key Objectives

Depending on what type of funding you are seeking, your proposal should describe anticipated and immediate short-term and long-term results.

Break down each result into key performance indicators (KPI) Most people understand if they reach their end goal or not but few people measure the results along the way. People fail not because something catastrophic, but because they fail to course correct a thousand tiny errors.

Establishing KPIs will ensure that you keep yourself on track and will show that you understand how to achieve a goal.

Definition: Key Performance Indicator is a type of performance measurement that evaluates the success or failure of an organization.

A common mistake in writing a proposal is failing to distinguish between a goal and objective. To provide energy-efficient appliances to homeowners helping to cut costs is a goal not an objective.

 Your objective must be S.M.A.R.T, that is:

• specific,
• measurable,
• Achievable
• realistic,
• time bound.

A measurable objective will have a subject, an action, a location, a timeframe and a percentage. For example, at the end of 2040, you intend to increase the number of people’s access in X county using Y energy-efficient product or service by Z percent.

A S.M.A.R.T goal may sound like something you did back in your undergrad but there is a reason they are so popular – they enable you to narrow your focus and achieve your goals.

Measuring Success Outcomes

Be careful not to confuse these terms. Outputs are measures of a program’s activities; outcomes are changes that result from the activities. Outputs matter because they lead to outcomes. Note that in our example, an output might be an increase in the size of a stream-side vegetative buffer.

 An outcome might be the resulting increase in the oyster harvest that occurs because the buffer stops pollutants from reaching the river. Also realize that a reviewer may specify a different way to measure success.

Measure and Record the Result of Your Work

State what measurements you hope to achieve and when you hope to achieve them. (Think about those SMART goals) If you want to hire a programmer for your website then describe what their role and job duties will be within the company and what date you want to hire them.

 Be as specific as possible. How will you know whether this person is contributing to your organization?

Measure Scope of Work & Deliverables

Here’s where you want to provide more detail about the project. Even if you don’t include all of it in your proposal, it is useful information to have. To the extent you can, describe all the services you know that you’ll be hiring a developer for. For example, their duties might include:

• Information Architectural design
• Graphic design
• Search engine optimization
• Front-end coding (HTML/CSS language)
• Back-end coding (CMS, 3rd party APIs, custom software/features)
• Custom software or app development
• Testing & quality assurance
• Software training

Why It’s Important:

Some creative firms look at a task, estimate the typical time to completion, and arrive at a cost by multiplying by an hourly rate. Your vendor is trying its hardest to scope out the work and knowing what the team is in for means you get a more accurate estimate.

Timeline

If your objective is project base, this is a very important aspect of any proposal. The reviewer will either have a specific timeline in mind or want to know how long your project will take.

 Almost all grants ask for a timeline. If it’s a big project you’ll want to break the project up into phases and clearly outline each one and what you hope to achieve.

Is There Anything Else?

Once you’ve finished writing out the problem and the scope you want to ask yourself is there anything else you can offer that can make your company or organization stand above your competition.

Protip:

Remember that the person who goes through the proposal is going to be reading very similar proposals and anything that you can add that goes above and beyond what they ask for can be the difference between your proposal getting recycled and you getting the money.

Extras can be:

• New technology
• Add on service
• Distribution channel
• Expertise

Step 4: Define the Budget

Most RFPs and proposals need a detailed budget included. This is one of the most difficult parts of the proposal and one you have to nail if you have a hope of getting the grant or contract. However, it can be difficult to put a precise price tag.

An RFP might have a budget suggestion and it’s strongly suggested to stay within the parameters. You have to stay within budget but you also can’t be too low either. There are several reasons for this including the organization you are submitting your proposal to needs to spend their marketing dollars, otherwise they won’t get them next year.

You don’t want to waste your time preparing a proposal that’s way out of your range. By stating explicitly what you want to pay, you permit the vendors to compete with each other for what they will offer you at the same price.

It’s definitely worth a phone call to the reviewer or the contact person to feel them out. They will likely give you a preferred number that is somewhere in the middle of the suggested budget.

You should also ask if the budget is flexible once you start the work. For example, if there are unforeseen delays, can you change the budget accordingly?

The budget should be sufficiently detailed and accurate to reassure the reviewer that you have thought it out enough and have a realistic sense of how much the work will cost to complete.

Costing Out the Budget

First, you need to define the type of work you are doing. This is usually split up into two parts: labour and materials. If you’re building a website you just need to factor in labour, but if you’re doing a photoshoot, do you need costumes? Maybe a rental space?

All these need to be factored in. They key is if you don’t know, to ask. Unless you’re an expert in all components of the work, often you’ll be unaware of some aspects of a particular task so it’s best to ask those closest to the actual work for help.

Once you figured out the amount of labour and materials you need, find out the hourly rate for each task. Taking the website as an example, perhaps your back end code charges you $150 an hour while your copywriter might only charge you $75.

It’s probably preferable to first work this information out in an excel spreadsheet as it allows you to update the estimate easily.

An example might be:

For a photographer who needs to charge for both labour and materials, it might look like this:

Lastly, figure out how near you are to the proposed budget. As mentioned, if you’re above or below how can you narrow the gap? If you’re above, perhaps you can find someone with less experience to try to complete the work. If you’re below,

Step 5: Write Your Proposal

Once you have identified the problem, solution, and budget, now is the time to write the proposal. You should use very clear, concise language while including an emotional appeal to the reader.

REMEMBER:

People make decisions based on emotion, not logic. They may back up their decisions using logic but at the core of it, we are emotionally driven human beings. You didn’t need a watch because you needed to know the time (you have a cell phone and a dozen other devices to tell you time) you bought it because it makes you feel successful. You didn’t need the latest iphone with a slightly better camera, you bought it because you can show it off to your friends.

The person or people who choose where the money goes won’t choose based upon qualifications but based on how you and your company make them feel. Do you exude friendliness? Trustworthiness? You need to pay attention to how your writing comes across.

You need to ensure that each sentence persuades and convinces your audience that you should be given the money.

I want to say that you can create a template for each proposal and just use that to fill in the blanks but funding doesn’t work that way. Tailor each proposal to each reviewer. Use the style and format that the reviewer has given you.

Follow the Instructions

This is obviously a no-brainer but you’d be surprised at how often proposals get submitted that don’t follow the instructions. The company was either too lazy or just plain incompetent to follow what was clearly laid out before them. If there is a ten-page limit, stick to ten pages. If you need to file in triplicate, file in triplicate. You may feel that breaking these rules is no big deal but it’s important to follow them precisely.

Having said that, the rules are not always clear and sometimes you need to ask for clarification. Don’t be afraid to pick up the phone and ask.

 It’s always better to ask the contact person rather than guess at what they mean. Writing a proposal is no easy task and if you don’t understand the instructions, you could be throwing hours of hard work down the drain.  

If you think you need to take exception, get permission to do so from the program officer at the funding agency. Include a statement with your application explaining that you have permission to deviate and your reason for doing so.

Use a Checklist to Make Sure Your Application is Complete

Make a list of all criteria with the point values, if applicable. Use this checklist to be sure that you have included everything that is required. Missing or incomplete items often result in outright rejection or at least a lower score, limiting your chance for funding.

Use your checklist as a table of contents for your proposal to make it easy for reviewers to find the required information. Pay particular attention to your budget, making sure all costs are eligible and fully explainable.

Do You Have:

1. Opening Statement
2. Executive Summary
3. Scope of Work
4. Methodology
5. Organizational Description/ Resumes
6. Deliverables
7. Project Timeline
8. Budget
9. Client Testimonials (If applicable)
10. Main Contact Information

Consider Hiring a Professional Writer

Many companies prefer to hire an outside consultant or grant writer to compile the proposal. The primary advantage is that the writer is an expert and able to devote time to the project.

 A consultant with expertise in a particular grant program can help you navigate the particular requirements so your proposal is successful. If you’ve had a string of failed proposals, it’s a good idea to hire someone to look them over and offer you suggestions on what you can improve.

If you’re thinking about hiring a professional, here are some questions to consider:

• How long have you been writing grants?
• How much time do you need to write a grant?
• How many grants do you write a year?
• How do you charge to write grants?
• How do you improve your skills as a grant writer?

Step 6: Edit Carefully

What you say and how you say it may be the only information the reviewer has about you, your community, and your project. Sometimes they are actually forbidden to Google or consider outside resources. So, be sure that your proposal is clear and easy to understand.

Thoroughly edit your text for spelling and grammar. Try to eliminate all errors as they can instantly disqualify your proposal. Follow standard grammatical usage and avoid jargon and local expressions. Electronic dictionaries, spell checkers, and grammar checkers like Grammarly and ProWritingAid will catch some of your errors but they are not the same as having a human review your work.

Protip:

It’s recommended that you have two or three people read your proposal to catch any inconsistencies and errors. Before you attach your signature to an application, be sure that the application is complete and accurate.

Give Your Proposal to an Outside Editor

Ask one or two people who have not been involved in the proposal to give it a “cold” read through. Give them a copy of the RFP and the review criteria, but no other information. Ask them to read the proposal quickly. (That is how reviewers will likely go through it, at least initially.) Do they understand it? Often times they will catch something obvious that you, immersed in the proposal, have missed.

Meet Deadlines

Above all, meet the deadline. This may be obvious but if the proposal needs to be in at 11:54am on a Tuesday, make sure it makes it by that time. Most grant programs have deadlines that are non-negotiable. Missing one will most likely eliminate your chance for funding during that cycle.

Allow plenty of time for rewrites and delays, because they invariably happen during the proposal writing process. If you do know that you cannot meet the deadline, it doesn’t hurt to ask for an extension. However, the sooner you do, the more likelihood they will grant it.

Next Steps

If you’ve completed your proposal than congratulations. We hope that this information has helped. If not and you need some help then don’t be afraid to reach out and ask. We have years of experience with many grants and RFTS and can guide you in the right direction.

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