Grants vs. Business Plans

"I'd rather write a grant proposal instead."

Instead? You should plan to write both. Grant versus business plan is not an either/or proposition. Many of the business plans I see have grant proposals built in. Grant money is a crucial resource for starting a project in public health.

In fact, your business plan will likely help your chances of getting a grant. Many funders want to see a business plan, even poorly developed ones. (That is not to say you should hand in a poorly developed business plan—funders want to know that you've thought through the project from a sustainability point of view.) Your business plan shows a funder that

• you know how the program will work,
• you have a plan to generate your own revenues, and
• you know how much you need to start up.

Think of a business plan as a proactive way to approach a foundation, instead of waiting to respond to a request for proposal.

A group I worked with actually received grant funding that helped them write a business plan. They took the business plan back to the funder and shared the five-year budget, indicating how much money they would need to pay for fixed costs, especially personnel, as they developed their plan. The funder immediately asked them for a proposal. I expect that they will wind up with the money they need to get them to a sustainable program after five years. A deciding factor for the foundation was matching funds: the program would generate revenues that at least matched the amount the foundation would commit.