Funding a new idea or start-up isn’t an easy task. Raising capital in general is incredibly time consuming and often frustrating. When you’re driven and passionate about your next big idea, the last thing you want to focus your energy on is money. But unfortunately money is what puts food on the table!
So, how do you get more cash? Investors? Crowdfunding? All are great options. But today we’re looking at a different option, and that’s government start-up grants.
Applications for start-up grants aren’t to be taken lightly. They require a lot of paperwork and proof of concept before any money is handed over. But they’re worth it - there are grants out there offering hundreds of thousands of dollars to start-up founders just like you.
Before you apply you need to:
- Realistically evaluate if your business is the right fit for the start-up grant for innovators. If it’s not, you’re wasting yours and your assessors time and you have very little chance of receiving the grant.
- Work out how you’ll make your application stand out - if you’re truly an innovative start-up, prove it!
- Think long and hard. Don’t change the direction of your business plan because of the grant’s monetary contribution promises.
To find the best grant for your individual business check out the Australian Government’s consolidated grant finder. If you’re just starting out, the government also has an advisory service finder, which can help you find mentors throughout Australia to help you grow.
Here are 3 top start-up grants you should consider applying for!
This program provides entrepreneurs with novel and innovative ideas access to a network of more than 100 experienced private sector advisors. The program’s aim is to teach entrepreneurs how to make their products competitive and improve productivity. Experienced professionals help innovators with practical advice to move forward and grow their business. There are three elements:
- Accelerating commercialisation - here small and medium businesses, entrepreneurs and researchers work on commercialising new products, services and processes.
- Business management - experienced business advisors and facilitators review business operations, direction, strategy and growth opportunities. They then provide a report with ideas and actionable strategies to make them happen.
- Innovation connections - Innovation facilitators work with your business to help you discover issues preventing your business growth.
There’s up to $20,000 available in funding and each individual program needs to be applied for separately.
Research and Development Tax Incentive
While technically this isn’t a grant, it’s an incredible money saver you should be implementing if your start-up meets the eligibility criteria. Your business could get a refundable tax offset of 45% if your aggregated turnover is less than $20 million.
Your eligibility to claim R&D tax offsets will depend on whether or not you are an R&D entity and, if you are, whether or not you have incurred notional deductions of at least $20,000 on eligible R&D activities.
Small Business Grants NSW
Growing a team when you’re a start-up isn’t easy and retaining great staff once you’ve found them isn’t cheap. The Small Business Grant in NSW gives employers a one-off payment of $2000 for each new full-time position opened in your business. You can claim the grant once the position has been in place for 12 months. And with any growing start-up there will be lots of new positions, so don’t let this opportunity slip.
There are so many start-up grants out there to help businesses just like yours, and depending on your state and industry, there are many more options. A big part of growing your business is keeping an eye on your cash flow - that’s why we at CeBIT created the no eye-bleed cash flow spreadsheet. Download it to keep your finances in check.
Are you interested in learning more about how to apply for grants? Please let us know in the comments below and we’ll interview an expert to give you the tips.