How to Start a Grant Writing Business

Part 1 - How to start a Grant Writing business - Background

Owners of grant writing businesses are adept at finding foundations, government entities and other funding sources and applying for funding on behalf of their non-profit clients. You will, in short, serve as a matchmaker, putting together funding sources and needs. You’ll continually seek grant opportunities and write succinctly, persuasively and in an organized manner in filling out requests for proposals (RFP) to win funding.

You may also be interested in additional side hustle ideas.

Our guide is in 3 parts:

• Part 1 - How to start a Grant Writing business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a grant writing business?

Your startup costs should be minimal since you can work from your home and without employees at first. Let’s look at some possible startup costs.

• Home office equipment—Your phone, computer and printer can be obtained for $1,000 if you don’t already own them.

• Rent—Your first office is likely to be your home or apartment. If that’s too distractive, seek office space for one person in a modest space. Meetings can be held at client locations, so you don’t have to impress with your office. Depending on where you’re located, rent could be as little as a few hundred dollars a month and shouldn’t exceed $1,000.

• Employee costs—You’ll likely be your sole employee, at least at first. What’s the least you can get by on? You might feel more financially secure if you have a working spouse, have saved a year’s salary beforehand or go into your business with at least one client signed up.

• Professional services—See a lawyer and an accountant before startup to draw up contracts and advise on expenses and taxation issues. This might be a $500 investment or more depending on the complexity of your business.

• Promotional and marketing materials—This includes everything from your website and blog to social media presence, business cards, logo development and collateral sales materials. Much of this can be done at low cost. For instance, your website and blog can be developed cost-free if you have basic digital skills, and you could find a competent graphic designer at your local community college. The investment of $500 to $1,000 should be enough in this area to launch your business.

• Accreditation, memberships and licensing—Networking within your industry can cost as much as $1,000. While not mandatory, this can be a valuable investment in credibility and a source of critical relationships. Ask your lawyer or accountant if you’ll face any licensing or permit fees in your locality.

What are the ongoing expenses for a grant writing business?

Your ongoing expenses can be quite modest until you’re primed for growth. At that time, you’ll need an office (or one that’s larger than your current site) and you’ll undertake employee expenses.

At first, your most pressing need will be to meet your own income and healthcare demands. Other ongoing expenses will include event attendance, lunches, travel, entertainment and other costs associated with meeting clients and funders.

One source estimated that operational expenses for grant writers might take up 25-50 percent of revenue.

Who is the target market?

You’ll want to meet decision makers at non-profit, community and civic organizations, and occasionally even for-profit entities and others seeking to raise funds through grants. While some grant writers seek clients of all kinds, others focus on a preferred type. That might be organizations working to treat specific medical conditions or to advance a political or civic objective, or perhaps non-profits based within your geographic region.

How does a grant writing business make money?

You’ll generate revenue by charging clients a per-hour or flat rate for your various services. As you win grants and your reputation grows, more businesses will come in and you can increase your hourly or project rates.

How much can you charge customers?

Grant writers with little experience and few clients might charge as little as $25 an hour, while a rate of between $50 and $100 hourly is earned by those with more experience. Some grant writing businesses charge a flat fee for individual services. For instance, this business charges $3,500 for a grant proposal that can serve as a foundational document for responding to RFPs. The company charges additional fees for RFPs and basic funding-source research.

How much profit can a grant writing business make?

The compensation data website Payscale estimated that in-house grant writers earn an average annual income of about $45,000. Use this as only a starting point, because those who work on their own have more control over their income. It will only be limited by your success in generating clients, nurturing funding source relationships, winning grants and marketing your successes.

How can you make your business more profitable?

Some non-profit organizations employ in-house writers but still need help with other aspects of grant seeking. Consider breaking down your various services and offering non-profits who might not be interested in your full menu of services a cafeteria option. This might include such related services as funding research, training and writing consultancy.

Day-to-Day and Growth

What happens during a typical day at a grant writing business?

You’ll maintain regular phone, digital and face-to-face contact with nonprofits and grant makers at foundations and other funding sources. You’ll spend significant time researching new funding opportunities and nurturing relationships in the funding community.

You should also have a regular social media presence to salute your nonprofits and foundations with which you’ve established contact and to promote your own achievements in securing funding.

During busy times, much of your day will be spent researching grant makers and filling out RFPs. You should also meet other grant writers at networking events with whom you could strike up successful partnerships or seek contract help during busy times.

What are some skills and experiences that will help you build a successful grant writing business?

Your success will be built upon the proficiency of your writing within this area of expertise and your ability to navigate the nonprofit world. You must be socially adept and able to work the politics of your two communities—nonprofits and funders.

What is the growth potential for a grant writing business?

The more clients you add to your roster, the more income you might generate. Success breeds success in this industry. While every grant request is a longshot since so many nonprofits are competing for the same funding, grant writers who are recognized as being particularly successful are best positioned to win new business. That’s why it’s incumbent upon you to publicize your wins through social media and self-marketing opportunities.

As your business grows, you can consider hiring additional writers or others who are networked into the non-profit or funding communities to help you generate additional clients or grantmaking sources.

What are some insider tips for jump starting a grant writing business?

Don’t go into this field unless your business writing skills are impeccable. That said, you should also have entrée in the nonprofit world. You might gain this knowledge with a background in a non-profit organization, working as an in-house writer or in some other area of expertise as either a staffer or volunteer.

Also consider learning more about the specifics of grant writing through various web articles and online training programs or through industry groups and trade organizations. These include National Grants Management Association (NMGA), Grant Professionals Association (GPA), and Grant Professionals Certificate Institute (GPCI).

How and when to build a team

One reason you need to network regularly is to meet other talented writers and insiders in the world of nonprofits and funding sources. You can expand gradually, as opportunity presents itself. If, at first, you have an excess of work, consider contracting with freelance grant writers to undertake parts of projects.

Only when you see that your business growth is ongoing, rather than a cyclical bump, should you consider part-time or full-time hires. You can also explore expansion through partnerships with other successful grant writers as a way to gain access to new client types or funding sources.

Part 2 - Is a Grant Writing business the right fit for you?

Part 3 - Action plan to launch your Grant Writing business in 90 days