The dissemination of information on grants to start-ups is, frankly, a mess. “It’s not easy to find new grants – you can’t just subscribe to an email service to find out when they come out,” says Cusack. “The Government portal often has old information on it. It’s not updated that often.”
This lamentable situation is compounded by the fact that the lead-up times for grant applications are relatively short. Provided that you’re lucky enough to discover a grant the day that applications open, you will probably only have a four-week window to compile your bid in before the deadline.
Keep an eye on sites such as Government Grant Guru for news on upcoming grants and if you miss a deadline, don’t despair.
Many grants, ranging from the Smart Water Fund to the Competitive Business Fund are annual. If you’ve missed out, save the date and give it a good crack next year.
Securing grants can be a bit of a geographical lottery. According to consultancy firm GrantReady, there are currently 47 grants available up to $1 million in NSW, compared to 109 in Victoria.
Queensland and South Australia trail in with 40 and 28, respectively. At federal level, there are 164 grants.
“All of the grants at state level are policy driven, in order to win votes,” says Nolle. “Queensland and Victoria are generally the two best places for grants as they both have had strong policies on job creation.”
“There’s also funding for businesses in regional Australia, designed to retain value in those areas. You can get a grant of up to $250,000 if you can show that you will create jobs in regional Australia.”
One of the major sources of grants outside the government is the university sector. Many universities hold entrepreneurial competitions, such as the University of Queensland’s business plan competition or Melbourne University’s Entrepreneurs Challenge, with cash prizes.
Cusack cites these two universities, along with RMIT and Swinburne, as having the best programs for fledgling businesses.
“You can get money and, almost as good, get students to write modelling and business plans for you,” he says. “It’s a win for you and for them.”
You can’t suddenly conjure up a lengthy business history in order to land a grant, but you can arrange your start-up’s personnel in order to maximise your chances.
“You need to demonstrate a viable business model to get a grant,” says Nolle.
“The government likes to back winning horses with a great track record. That’s difficult for start-ups, but they can leverage the experience of the owners.”
Like any other investors, the Government finds experienced, knowledgeable founders a reassuring factor when handing out grants.
If you or your co-founder aren’t steeped in corporate history, don’t fret. Attempt to form a board of directors, offering either equity or a profit share, that makes your business appear to be a serious heavy hitter.
Several industry groups either provide funding for members or assist them in securing grants from the Government and elsewhere. For example, the Australian Interactive Media Industry Association has links with trade and funding bodies for its members.
If you’re not a member of your relevant industry body, sign up. You may even find help from big-name businesses. While not quite at the level of IBM’s support for start-ups in the US, there are programs to help entrepreneurs, notably the Microsoft Biz Spark scheme and the Jumbuck-backed Launchpad program.
