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Why Warren Buffett Would Never Apply for 10 Grants at Once (And Sun Tzu Agrees)
Why Warren Buffett Would Never Apply for 10 Grants at Once (And Sun Tzu Agrees)
Who | Warren Buffett, Sun Tzu, small business owners chasing grants |
---|---|
What | Why spreading yourself thin across multiple grant applications is a recipe for disaster |
When | Right now - when every entrepreneur thinks "more applications = better odds" |
Where | U.S. funding landscape (SBA, federal grants, state programs) |
Why | Because quality beats quantity, and focused effort wins funding wars |
How | Strategic selection + deep research + killer execution |
Look, I've been watching entrepreneurs for years now, and there's this crazy trend happening. Everyone thinks they need to apply for every single grant they can find. It's like speed dating, but with government money.
Here's the thing though - if Warren Buffett were running a small business today (wild thought, I know), he wouldn't touch this spray-and-pray approach with a ten-foot pole. And Sun Tzu? That ancient military genius would probably roll his eyes at the whole mess.
Trust me on this one. I've seen too many smart business owners burn themselves out chasing funding that was never meant for them.
Buffett's Golden Rule: Concentration Over Chaos
You know what Buffett always says about diversification? "It's protection against ignorance." Ouch, right? But he's got a point.
When you're scrambling to fill out applications for ten different grants, you're essentially admitting you don't know which one will work. That's not strategy - that's panic.
I watched my friend Sarah learn this the hard way. She spent three months applying to everything from USDA rural development grants to tech innovation funds. Guess what happened? She got rejected by all of them because each application was... well, let's just say "adequate" instead of amazing.
Sun Tzu's Battlefield Wisdom for Grant Warriors
Here's where it gets interesting. Sun Tzu wrote, "He who defends everything, defends nothing."
Ugh, this hits so hard when you think about grant applications. When you're trying to be everything to everyone - sustainable AND tech-forward AND minority-owned AND rural - you end up being nothing special to anyone.
I know a guy named Marcus who ran a food truck business in Austin. Instead of applying to five different small business grants, he zeroed in on just one: a local economic development fund specifically for food entrepreneurs. He spent weeks understanding exactly what they wanted. Studied their previous winners. Even drove to three different neighborhoods they'd funded before.
Result? $75,000 in funding and a mentor relationship that lasted two years. While his competitors were still waiting to hear back from their scattered applications.
The Opportunity Cost Nobody Talks About
Let's get real for a second. You have 24 hours in a day. Maybe 16 if you're not sleeping enough (which you probably aren't if you're reading this at 2 AM).
Every minute you spend crafting application number seven is a minute you could have used to make applications one and two absolutely bulletproof. Buffett obsesses over this concept - he calls it opportunity cost, and it'll make or break your funding strategy.
Think about it like this: would you rather have a 15% chance at ten different $50K grants, or an 80% chance at one $100K grant? The math is pretty obvious when you put it that way.
The Momentum Effect (It's Real)
Here's something cool that happened to my colleague Jenny. She runs a renewable energy consulting firm in Colorado. Instead of applying to eight different cleantech grants, she focused everything on one major Department of Energy SBIR.
She got it. $150,000.
But here's the kicker - six months later, when she applied for her next round of funding, reviewers already knew who she was. That first win opened doors she didn't even know existed. Banks started calling her. Venture capitalists wanted meetings.
Sun Tzu would call this "building momentum on favorable terrain." One strategic victory creates the conditions for the next one.
Real Talk: The Seattle Coffee Roaster
My buddy Alex owns a specialty coffee roasting company in Seattle. Last year, he was staring at deadlines for twelve different grants - everything from minority business development funds to sustainable agriculture programs.
His accountant (smart woman) sat him down and said, "Pick three. Maximum."
Alex ended up focusing on just the Washington State Small Business Innovation Research grant and a Seattle economic development fund. He spent two months making those applications shine. Interviewed previous winners. Visited the program officers' other funded businesses.
Long story short: he landed $85,000 from the state program. The other application led to a meeting that turned into a partnership worth $200K in revenue.
Meanwhile, his competitor down the street applied to nine grants and heard crickets from all of them.
Your 30-Day Focus Strategy
Week 1: The Audit
- List every grant opportunity you've been considering (be honest - I bet it's more than five)
- Score each one: Does it align with your business model? What's the realistic win rate? How much work is required?
- Sleep on it. Then cut the list by 70%.
Week 2: The Deep Dive
- Research your top 2-3 picks like you're writing their biography
- Find previous winners and actually read their success stories
- Identify the program officers and understand what makes them tick
Week 3: The Build
- Draft your strongest application first (the one with highest win probability)
- Get feedback from someone who's won grants before
- Revise. Then revise again.
Week 4: The Launch
- Submit your best work
- Immediately start working on application number two
- Document everything for next time
The Questions Everyone Asks
Here's the brutal truth: you're already missing out by submitting mediocre applications everywhere. Better to win one than lose ten.
Two to three per quarter, maximum. Any more and you're kidding yourself about quality control.
Absolutely. Banks and grant reviewers both reward the same thing: clear vision and solid preparation. A focused approach improves your SBA loan approval rate because you're demonstrating strategic thinking.
Then focus becomes even more critical. You can't afford to waste time on long-shot applications. Pick your battles wisely and fight them well.
The Bottom Line
Look, I get it. When you're bootstrapping a business, every funding opportunity looks like a lifeline. But here's what I've learned from watching hundreds of entrepreneurs chase grants:
The ones who win aren't the ones who apply to everything. They're the ones who pick their spots, do their homework, and show up with applications that make reviewers sit up and take notice.
Warren Buffett didn't become a billionaire by buying every stock he could find. Sun Tzu didn't win battles by fighting on every front. And you won't fund your business by applying to every grant in existence.
Sometimes the best strategy is saying no to nine opportunities so you can absolutely nail the tenth one.
Trust me on this.