Government Grants: Should Your Business Apply?
As an entrepreneur, you’ve probably heard a lot about small business grants available from the Australian Government’s business division. They can be a great help for many businesses yet too many small business owners are confused about their eligibility along with selecting the grant that will help their business the most. Today, we’re going to clear up some misconceptions and by the end of this article, you should know whether or not your small business should apply.
What can Government Grants do for you?
To put it simply, Government Grants are designed to help small business owners out financially. They’re similar to a loan except you don’t need to pay them back. If you comply, you’re essentially turning a stack of papers and documents into Government assistance to help fund your business. Securing a government grant for your business can be easier said than done and choosing the grant carefully plays a significant role.
Who can apply?
Many people make the mistake of assuming only non-profit organisations can receive funding from Government Grants. In fact, any business can apply, as long as they meet the requirements for the selected grant and turn their application in on time with the necessary documents attached. Common examples of records needed to apply include:
- Business Plan
- Profit/Loss Statement
- Balance Sheet
- Cash Flow Statement
Should you apply?
Remember many grants are competitive, so whilst most businesses can qualify, before you go through the lengthy application process, there are a few things you should consider:
- For larger grants, you should have a quantifiable, revolutionary idea that can change the marketplace. After all, the government wants to know that its money won’t be going to waste.
- Larger grants require more information from you and your bookkeeper. For this reason, you must plan to spend time going through the application to make sure everything is in order and accurate.
- Don’t overlook smaller grants! Even a few thousand dollars is better than nothing at all and could help your business tremendously if you spend it wisely.
Government Grants is one component of your project and our experience suggests that you have an overall execution strategy in place to ensure a successful wider outcome.
If You Do, Timing Matters
We recently wrote at length about the factors that can play into your application timing. You can read the whole post here but in summary, depending on the grant that you choose, you will need to take a proactive approach to ensure that you meet the deadline. Many of the grants like the R&D Tax Incentive have a deadline right around tax time, this year, for instance, it is 30 April 2018; after the deadline passes you’re out of luck and you’ll have to wait until next year to apply for the grant again.
Another popular grant for small businesses in Australia is the Export Market Development Grant (EMDG) which is for businesses that export goods outside the country. If you maximize your export strategies throughout the year, you’ll be able to claim more entitlements at the end of the tax year. Keep in mind that to apply for this grant you must lodge through a Quality Incentive Program (QIP) consultant.
Conclusion
If you have any questions or would like to learn more about Government Grants, please feel free to get in touch with our team at www.abjsolutions.com.au or email admin@abjsolutions.com.au
Joe Boyd & Tony Barakat
ABJ Business Solutions
M: +61 401 991 495
M: +61 405 534 934
