April 27, 2020 Funding Fallacies

What you should know when seeking a small business grant.

If you are fortunate to have a small business in Australia, then you will be pleased to discover that the Australian government provides financial support for many startups and other small businesses every year. There are many different types of grants that are available. However, this fact is both positive and negative at the same time.

On the one hand, you can be sure that many of the grants in the set will apply to your business. Therefore, you can be confident that there is funding out there for you and your small business. However, the difficulty lies in finding these grants when faced with a confusing list of funding options. Determining what your best bet will be can be made easier with a little bit of guidance.

Let’s look at some of the specific things that you need to know when you are seeking small business grants.

There Are Grants Available At Different Levels Of Government

Small business owners often believe that grants only come from the federal government in Australia. However, there are many other funding opportunities available through state governments. Making sure to apply to both types of funding will increase the chances that you receive the funds that you need.

Funding Is Generally Project-Specific

Unfortunately, most funding is not distributed to small businesses simply because you are running a business. In other words, you likely will not find the funding you need when you apply as a business with no details or clearly documented projects. Funds are readily available for things like expanding a business in a specific way, conducting concrete research and development plans, or bringing a new product to market.

Funding is usually project-based and so having a clear plan for why you need the funds and how you plan to use them is essential. Move past your basic business idea when you are applying and include specific details about a project that you intend to complete. This will make you far more successful in your search for funding.

Some Funding Is For Getting Businesses Off The Ground

In some cases, funding is available for a general business plan if your business is a promising startup that has a specific project, or set of projects, in mind. Do not give up hope for funding when you are starting out as an entrepreneur, as you may still be able to secure funding depending on your circumstances. With a general business plan, it’s a good idea to also include a growth plan for how you see the business realistically performing over the course of the next few years.

Funding Is Often Distributed As Free Services

Not all government funding will see your business’s bank account increase. Instead, some funding programs are all about providing free business development services for Australian entrepreneurs. This includes things like business workshops, tax instruction, mentoring and training, low-interest loans, or even networking opportunities.

While these services may not directly provide your business with funding, they are immensely valuable for getting your business off of the ground or taking it to the next level. Knowledge is power and knowing more about the business world will serve you well as your business expands.

Watch Out For Scams

Unfortunately, there are many fraudulent websites that attempt to lure Australian business owners seeking grants into scams. Only apply for funding through official government websites and double-check the URL to be sure that it is legitimate. Remember that applying for government grants is completely free. Do not provide your information to a site that asks you to pay.

Find Your Funding

With these tips, you are set to start looking for government funding for your Australian business. Have a clear project in mind and you will be able to secure funds that will make all the difference for your success as an entrepreneur. Remember that there’s plenty of opportunities to apply for funding or small business grants that can help you to get your business off the ground, so compile a list of potential funding you can apply for and then submit applications one-by-one.

Summary

Overall, if you’re a small business owner or an entrepreneur looking to launch a start-up, then securing funding from the Australian government can be exactly what you need to take your business to the next stage. Whilst there is plenty of help and financial assistance that you can apply for, you’re not always guaranteed to have your application accepted. However, the more you research, the more you’ll understand what needs to be included within your application including financial figures, business plan and growth plans. The more information you have available to you that provides a clear picture of where you want your business to go will make it more likely for you to succeed in securing funding.

Subscribe to Industry Today