If you’ve ever applied for a grant, fellowship, or startup funding opportunity and didn’t get selected, chances are your idea wasn’t the problem; the way you presented it was. So, these funding application mistakes are quite true.
The thing is, funding bodies across the globe are looking for innovative businesses, nonprofits, and social enterprises to invest in. But what many applicants don’t realise is that the competition is high, and minor mistakes can instantly disqualify you, even if your project has real potential. This I discovered when I wrote these two blog posts: How Entrepreneurs in Developing Countries Can Secure Global Funding and How to Secure Global Funding (For Developing Countries) (Part 2).
Whether you’re applying for local grants or global opportunities like the Tony Elumelu Foundation, Y Combinator, or Mastercard Foundation, avoiding these mistakes can increase your chances of getting funded.
Funding application mistakes
Mistake #1: Applying Without a Clear Business Model
This is the Business Grant Pitch I recently sent out, see part of the business model I simply discussed.
Many founders submit applications with passionate ideas but no real structure.
For example, you might write, “We are solving access to healthcare in rural communities.” That’s a good mission, but how exactly will you do that? How do you make money or stay sustainable? Who pays for the service? See the second part of the Business Model I pitched.
If your funding application can’t clearly explain your value proposition, how you make revenue (or impact), your target market, and how you deliver your service, funders will struggle to trust your execution capacity.
What to Do Instead:
- Break down your model: For instance, “We charge ₦5,000 per consultation. We’ve signed MoUs with 3 clinics. In 2024, we served 800 patients.”
- Even if you’re pre-revenue, outline a roadmap: how you’ll grow, who will support you, and what makes your model scalable.
- For nonprofits: show donor diversity and long-term sustainability plans.
Funding tips: