Applying for the BUD Fund, which offers up to $7 million in support, can be a daunting task for many clients. The process is intricate, demanding thorough documentation, obtaining multiple supplier quotes, and responding promptly to government inquiries, all within strict deadlines. An unsuccessful application can be a significant setback, wasting valuable time and potentially hindering a company’s development plans. To assist businesses in enhancing their chances of success, we have identified the top five reasons why applications fail, along with detailed explanations for each.
Top Five Reasons for BUD Fund Application Failures:
The applicant could not provide the required license or permits for sales of its product(s)/service(s).
The applicant enterprise cannot show that it has sufficient ability to implement the proposed project.
The proposed project does not fall within the funding scope of the Program.
The applicant enterprise cannot demonstrate that the measures in the project include solid actions for developing business in the market.
The applicant enterprise cannot demonstrate that the measures in the project can enhance its competitiveness and facilitate its business development in the market.
Lack of Necessary Licenses and Permits
The applicant could not provide the required license or permits for sales of its product(s)/service(s).
A common pitfall is not providing the required licenses or permits for selling products or services. Companies must comply with the regulations of the target market and obtain necessary certifications. For instance, in mainland China, certain products require customs registration and certifications like GB (China National Standard) or 3C (China Compulsory Certification) to be sold legally.
2. Inadequate Execution Capability
The applicant enterprise cannot show that it has sufficient ability to implement the proposed project.
Many companies fail to demonstrate sufficient capability to implement the proposed project. During the BUD application process, the Hong Kong Productivity Council (HKPC) may raise queries that must be addressed within a set timeframe. Failure to respond promptly may lead to doubts about the company’s execution ability and result in rejection.
Applying for the maximum grant amount of HK$1 million for a BUD project without a sufficient number of employees can raise concerns about the company’s ability to complete the project. The project proposal should detail the project content, implementation steps, expected outcomes, and budget plan, ensuring alignment with the company’s actual capabilities.
3. Non-compliance with Funding Scope
The proposed project does not fall within the funding scope of the Program.
The BUD Fund covers a broad range of projects, including setting up new business units, hiring staff, advertising, and hiring influencers. However, there are specific limitations. For example, collaborations with Key Opinion Leaders (KOLs) or Key Opinion Consumers (KOCs) are often preferred, but if the KOL/KOC operates as an individual rather than a registered company, the application is likely to fail.
4. Lack of Market Promotion Strategy
The applicant enterprise cannot demonstrate that the measures in the project include solid actions for developing business in the market.
The primary goal of the BUD Fund is to assist local businesses in expanding into mainland China or 38 other countries. Projects focused solely on purchasing equipment or samples without including marketing strategies will not be viewed favorably. Companies should ensure their BUD plans balance resource allocation and include substantial market promotion activities.
5. Lack of Upgrade and Transformation Strategies
The applicant enterprise cannot demonstrate that the measures in the project can enhance its competitiveness and facilitate its business development in the market.
Applications that lack elements of brand development or business upgrade and transformation are less likely to be successful. For instance, applications that only include advertising without plans for hiring additional staff or upgrading the company’s competitiveness may be rejected. It's essential to demonstrate how the project will enhance competitiveness and facilitate business growth in the market.
Conclusion
Applying for the BUD Fund can be challenging, with common pitfalls including lack of necessary licenses, inadequate execution capability, and insufficient market promotion or upgrade strategies. By understanding and addressing these common reasons for failure, businesses can significantly increase their chances of securing funding.
Our company specializes in assisting businesses with their BUD Fund applications, ensuring compliance with all requirements and maximizing the likelihood of success. For assistance, please contact us at info@captivatemkt.com. We wish all applicants the best of luck in securing BUD Fund support!
Comments