Mistake 3: The Funding Application is Submitted to the Wrong Organization

Not every funding program is suitable for every project. Nevertheless, program selection is often made too superficially, which can doom everything to failure. Each funding program pursues its own objectives and defines clear requirements for companies and projects. Factors such as company size, industry, technology field, location, project volume, degree of innovation, or the involvement of partners may determine whether an application is even eligible for funding. In practice, these conditions are often checked too late, leading to significant time investment in applying for funding, even though the project does not match the program's objectives or meet formal requirements. Additionally, some funding programs have limited budgets, and applications are evaluated competitively. Even strong projects have low chances of success if more suitable funding instruments are not taken into account. Choosing a program with unsuitable funding conditions also poses problems. For example, project volumes may significantly exceed the funding limits, leaving a substantial portion of costs unconsidered. Furthermore, funding programs differ significantly in the types of eligible costs. While some programs primarily fund personnel costs, others may also cover material costs, external development services, investments, or overhead costs. If, for example, high material costs arise for prototypes, test setups, or experimental facilities, selecting the wrong funding program can become very costly. Therefore, the crucial question is not whether a project is eligible for funding but which program offers the best chances of success and the greatest financial benefit. This can determine funding volumes amounting to tens or even hundreds of thousands of euros, as emphasized by Hentschel Funding Consultancy.

Mistake 4: Funding Times and Costs Calculated Too Tightly

Many companies plan their funding projects too optimistically, thereby missing out on funding potential. Out of concern about overestimating project costs or unnecessarily extending the timeline, personnel effort, external services, or investments are often calculated too conservatively. The same applies to project timelines. In practice, however, research and development projects rarely proceed exactly as planned. Technical challenges are often harder to overcome than anticipated, problem-solving processes do not lead to the desired results, or key employees leave the project. For this reason, sufficient buffers for both aspects should already be included during the application process. What is not applied for cannot be taken into account later—or only with significant effort. If additional costs or longer development periods become apparent only during the project’s duration, adjustments may not be possible or may only be possible to a limited extent, depending on the funding program. Funding agencies do not expect an exact forecast. However, they do expect realistic and comprehensible planning that considers uncertainties.