Successful small businesses are those that plan their business goals and map out strategies to achieve these goals. But even successful small businesses experience problems funding their action items.
Could business grant funding be the answer to ticking off these action items?
Typical business funding options
There are multiple options for funding your business:
- FFF – family, friends & fools
- Crowd-sourced funding
- Angel investors
- Government grants
That’s just a few; there are many more options. The question is: which is best for your business?
For most businesses, the bank will be your best option as there’s no associated dissolution of ownership and no real impact on your ability to run your business as you see fit.
But you will pay a premium for this type of funding in the form of interest. Even in times of low interest rates, this is still considered an additional cost. Bank funding also impacts your cashflow when it’s time to make those monthly (or weekly) repayments.
What about government grants? Are they really a viable funding option for small businesses? The short answer is “yes…but”.
The pros of business grant funding
Business grant funding from government can provide wonderful opportunities to access what you need to achieve your business goals.
You don’t have to give away anything in return (like ownership percentages or products, etc.) and it can result in free publicity for your business, as the government likes to focus on successful recipients.
Business grant funding can also provide you with the opportunity to obtain valuable feedback on your business and business ideas – for free!
But, like all opportunities, business grant funding comes with associated costs…
The cons of business grant funding
Most grants these days are highly competitive processes with short turnaround times and many have co-contribution funding requirements.
Before going down this road ask yourself the following:
- Are you really ready to go through a competitive government business grant process?
- Do you have a strategic business plan that clearly articulates your goals and vision?
- Have you identified a relevant project that meets all the grant-eligibility criteria?
- Are you sure you’ve maximised your funding potential and considered all eligible project costs and relevant grant funding programs?
- Have you identified the best way to fund your co-contribution?
Looking for government funding? Be prepared…
Preparation is key. A successful business is one that plans for success and that also applies to the grant process.
By undertaking a strategic business planning process, you will ensure your business has much of the supporting documentation already in place for grant applications. This could place you in pole position when you apply for business grant funding.
For more advice on preparing your business and getting it “grant ready” or finding out which grant funding programs are available, call Dianne Brown of SRJ Walker Wayland on 07 3490 9988.