FAQ’s
Here are some Frequently Asked Questions and answers that will help you on your search to find a Government Grant:
Q1. I am thinking of starting up a small business. Are there any Government Grants that I can apply for?
A. Yes, there are. The most common grant for people who are new to running a business is the NEIS program run by the Federal Government. This provides new starters with a fall back payment and some essential training. There are also many great resources to read at http://www.business.gov.au to help guide you through the startup process and most state governments will also have a small business site. At a more local level there are local council grants available – refer to your local council web site.
A new program for 2010 has also started under the Commercialisation Australia program which offers assistance to Australia’s talented researchers, entrepreneurs and innovative firms to convert innovative ideas into commercial ventures.
Q2. I have invented a product and I am looking for a Government Grant to get started. What grants are best for me?
A. The Federal Government has come up with a policy paper on the issues around innovation called Powering Ideas: An Innovation Agenda For The 21st Century (see http://www.innovation.gov.au/innovationreview) and a new program for 2010 has also started under the Commercialisation Australia program which offers assistance to Australia’s talented researchers, entrepreneurs and innovative firms to convert innovative ideas into commercial ventures.
Q3. I have a great product but what else can I do if there aren’t any Government Grants to help me start up my businesses?
A. There wouldn’t be many businesses if no-one was prepared to go forward without grant assistance. There are a number of basic approaches that product or IP owners need to decide when moving forward. You can do it all yourself, you can license your IP to someone or you can do some and outsource as much as possible. Your choice needs to suit your personal goals and abilities. If you choose to build your business and not license your IP, then you have the choices of using your own cash, investment from friends, family or fools (FFF), take pre-orders, bank or debt finance and finally investors. In any one of these situations a business plan is essential to measured success.
Q4. Can I apply for more than one Government Grant?
A. Yes, but read the fine print. Some grants are sequential, meaning that you can get the funding for Commercilisation Australia and still be eligible for EMDG and R&D Tax rebates. Some are mutually exclusive. The general rule is no double dipping.
Q5. Does Treadstone work with community grants?
A. No. The areas of community grants and fund raising for charities is not one of our areas of focus. However many not for profit businesses are eligible for business grants. There are quite a few good size grants for associations, organisations and collaborative groups.
Q6. What Government Grants are there for businesses that have already started up and need a little extra help?
A. There are a number of grants that help businesses on their way to the next level, but in most situations the government only backs a winner. That is to say if you are not making a profit and have not demonstrated a solid track record then you are unlikely to receive additional funding. The general approach is for Government to provide funding to third party consultants and services to help you grow your business. Depending on your revenue size Enterprise Connect and the Victorian State Government’s Grow Your Business are two good examples of programs available that may assist. Commercilisation Australia also provides funding for growing businesses.
Q7. If I get a Government Grant do I need to pay it back?
A. Not unless you breach the contract conditions. For example, some grants stipulate that if you sell your intellectual property in a certain time period after receiving the grant funds then you may have to pay it back. Treadstone can help you navigate through the conditions associated with various grants. Under the Commercialisation Australia programs for Early Stage Commercilisation there is a payback clause of 5% of turnover (see the guidelines for more detail).
Q8. What other things qualify for Government Grants?
A. Projects within existing businesses can also be subsidised by grants. In the main, the projects need to be “green” related to support Australia’s environment challenges. Some grants supporting this are Retooling for Climate Change and the Green Building fund .