[Must-See] Boost Your Selection Rate! The Small Business Sustainability Subsidy Business Plan Can Change Dramatically with These 3 Points

Hello, this is Matsumura, a certified management consultant specializing in subsidies.

To those of you running your own businesses or presidents of small companies, thank you for all your hard work every day.

“I tried applying for a subsidy, but I was devastated to receive a rejection notice...” “To begin with, I don’t even know what I should be writing in a business plan...”

I think you may have had these worries at least once. It’s okay. If you read this note today, you will surely find a clue to solving those worries.

No matter how wonderful your business idea is, if its appeal and passion are not conveyed to the reviewers, it will not be selected. Conversely, if you know the “template” for a business plan that gets the message across, your selection rate will change dramatically.

In this note, I will focus on the “Small Business Sustainability Subsidy,” which is relatively easy to challenge among the many subsidies available. Based on my experience supporting many business owners, I will explain the points for creating a “business plan that gets selected” in a way that is easier to understand than anywhere else, so please rest assured.

What is the “Small Business Sustainability Subsidy” in the first place?

First, let’s briefly review what kind of system this subsidy is.

In a nutshell, it is a system that supports small business owners, especially those among small and medium-sized enterprises, in taking on challenges such as market development (initiatives to increase new customers) and operational efficiency (initiatives to eliminate waste in work) . The government’s aim is for you to utilize this subsidy to earn a solid income, increase employment, raise employee salaries, and revitalize the local economy.

There are mainly four types of support for fiscal year 2025, but I think the following two are applicable to many people.

General Type (Standard Category) Target: Businesses in commerce/services with 5 or fewer employees, or manufacturing/other with 20 or fewer employees. Subsidy rate: Generally 2/3. Maximum subsidy amount: 500,000 yen (*Can be increased up to 2.5 million yen by utilizing the invoice special provision, etc.)

Startup Type Target: Businesses within 3 years of founding. Subsidy rate: Generally 2/3. Maximum subsidy amount: 2 million yen (*Also up to 2.5 million yen by utilizing special provisions)

3 Basic Points to Significantly Increase Your Selection Rate

Now, let’s get to the main topic. Before you start writing your plan, I will tell you about three important points you must keep in mind. Honestly, if you miss these, even if you write a great plan, there is a possibility that you won’t even be able to stand at the starting line.

Point 1: Always check the public offering conditions

You might think, “That’s obvious,” but this is the most important thing. As the name suggests, this subsidy can only be applied for by “small businesses.”

Don’t just assume “We are a small company so it’s fine.” Please be sure to check if your company truly fits the definition of the number of employees stipulated in the public offering guidelines. Also, please note that you cannot apply for expenses that are not eligible for the subsidy (for example, just purchasing a computer, etc.).

Point 2: Apply for all additional point items without omission

Between us, the screening for this subsidy is conducted using an “additional point system,” just like a test score. In other words, the more points you are evaluated on, the closer you get to being selected .

The screening is broadly divided into two stages.

1. Mandatory Screening: This covers the basic aspects, such as whether you are eligible to apply and whether the content of the plan is properly written.

2. Optional Screening: This is what is called 'policy-based additional point screening,' where points are added if you are undertaking initiatives that the government particularly wants to support (e.g., wage increases or business succession).

Applying with zero additional points is like going to the battlefield without a weapon, and it is extremely dangerous because the adoption rate drops significantly. If you read the public offering guidelines carefully, you will find some additional point items that are surprisingly easy to tackle, so be sure to apply for any that you can obtain.

Point 3: Create a plan that is easy for anyone to understand

Reviewers are often people who hold the national qualification of Small and Medium Enterprise Management Consultant. However, while they are management professionals, they are not necessarily well-versed in every industry. For example, it is entirely possible for a reviewer knowledgeable in the construction industry to read a plan regarding the latest IT services. Even if you list technical jargon, unfortunately, they will not think 'Wow!', but will end up thinking 'I don't really understand this...'

Actively utilize diagrams, tables, and photos. Avoid technical jargon and explain in simple language that even a junior high school student could understand.

Reviewers evaluate a vast amount of plans in a short time. Finishing it as a 'communicative' plan that allows the content to be understood at a glance is the secret to getting it read thoroughly to the end.

[Practical Edition] 4 Writing Methods to Master for Your Business Plan

Now that we have covered the basics, let's explain 4 more specific points regarding the content of the plan.

1. Write concisely by focusing on the main points

Each item in the plan always has 'what is being asked.' Understand the intent of the question accurately and be conscious ofwriting the conclusion first. If you write at length about irrelevant company history or personal feelings, what you really want to convey will become blurred.

Avoid ambiguous expressions: Instead of saying 'I will do my best to increase sales,' using specific numbers, such as 'By introducing a new menu, I will increase the average customer spend by 200 yen and increase sales by 10% compared to the previous year,' will instantly increase the persuasiveness of the plan.

Bullet points are also effective: If you are not good at writing, it is very effective to use bullet points instead of forcing yourself to write long sentences. The main points will be organized, making it easier to understand.

2. Clarify the background and issues of the business

It is extremely important to clarify not only the content of 'I want to do this!' but also the background and issues, such as 'Why is it necessary to do this now?' Actually, there are many business plans that lack this.

(Example) Issue: I started an e-commerce site a few years ago, but sales have been sluggish due to increased competition. Customers have pointed out that the site design is old and difficult to view on smartphones. Content of initiative: Renew the site with a new smartphone-compatible design and implement a customer attraction campaign linked with social media.

By presenting the 'issue' and the 'initiative to solve it' as a set in this way, the reviewer will be convinced, thinking 'I see, that is why this investment is necessary.'

3. Clarify the budget and schedule

Specifically indicate 'what you will use the subsidy for and how much' and 'what you will do by when.'

What I want you to be especially careful about isnot to include expenses unrelated to the business. For example, you cannot include unrelated 'office rent' as an expense when applying for a subsidy for 'flyer creation.' By honestly listing only the expenses truly necessary for the subsidized project, the transparency of the entire plan increases, leading to trust.

4. Describe the expected effects concretely

What kind of effects can be expected as a result of carrying out the project? Using "numbers" here to show them concretely is the final deciding factor in winning selection.

NG Example 👎 "I think sales will go up." "I'm sure the number of customers will increase by using SNS."

OK Example 👍 "One year after the renewal of the EC site, we expect sales via the site to increase by 20%." "We aim to increase Instagram followers by 1,000 in half a year and acquire 10 new inquiries per month."

By setting concrete goals, you can give the judges a good impression that "this business owner has properly considered the feasibility of the plan."

Caution! Application content that is likely to lead directly to non-selection

Finally, I will tell you about three NG cases that could lead to an immediate disqualification, where you won't even be on the starting line for review if you do these.

1. Projects that have already been ordered or contracted at the time of application The basic rule for subsidies is to always place orders or sign contracts after receiving notification from the secretariat that "you have been selected (grant decision)." Unfortunately, projects that you rushed into because you were impatient are ineligible.

2. Applications for website-related expenses only Actually, there is a rule that website-related expenses are limited to 1/4 of the total eligible expenses (with a cap). Therefore, if you apply with only these expenses, the possibility of non-selection is extremely high. Be sure to combine it with other initiatives such as flyer creation or store renovation when applying.

3. Omissions or deficiencies in documents You might be surprised, but according to some data, it is said that many of the reasons for non-selection are very simple mistakes, such as "not filling in required items." Fields that should be filled in are blank. Required attached documents such as financial statements are missing. The company name or representative name is slightly different depending on the document.

It is truly a waste to miss an opportunity due to such simple mistakes. Before pressing the submit button, I recommend that you check it many times, such as having your family or friends look at it.

Summary

How was it? You don't need difficult management theories to increase the selection rate for the Small Business Sustainability Subsidy.

First, check the public offering conditions to see if your company is eligible. Get as many additional points as possible to advance the review in your favor. In the plan, write clearly using numbers about "why you are doing it (issues)," "by when (schedule)," and "what will happen (results)." Before applying, thoroughly check one last time to ensure there are no already-ordered projects and no deficiencies in the documents.

Just by reliably hitting these points one by one, your business plan will be much closer to being selected.

I would be very happy if this article could be a trigger to help your business, which is struggling for the future, take a step forward. Please create a plan that hits the points and win the subsidy selection. I am rooting for you!