What is business funding? Is it relevant to my business?

Oct 03, 2018

Both the Queensland and Australian Governments offer funding programs, primarily grants to support businesses to succeed and grow. Government grants are utilised to develop business through activities such as expanding, developing and innovating businesses.

Different types of business funding options

There are so many different types of funding available. However, these are a few of the common ones:

  • Crowdfunding,
  • Crowd-sourced funding,
  • Angel investors, and
  • Government grants

As previously highlighted, these are just a few; there are many, many more.

So this brings us to the next question, which is best for yourself and your business?

The answer for most businesses would be the bank being your best option. This is before there is currently no dissolution of ownership and not a lot of impact on your ability to run your business. But you will pay a premium for this type of funding. This payment will be in the form of interest. Even whilst there might be low interest rates, this will still be considered an additional cost. Bank funding also impacts your cash flow when it's time to make repayments whether it be weekly, fortnightly or monthly.

What about Government grants?

Government grants are available for small businesses and are definitely funding options, but there is definitely pro's and con's to government grants.

The Pros:

Business grant funding from government can provide many positive opportunities. You can access what you need to achieve your business goals. Business grant funding can also provide you with the opportunity to obtain valuable feedback on your business and business ideas.

The Cons:

Most grants are highly competitive, so before applying, ask yourself the following:

  • Are you aware of how competitive the government grant process is? Are you ready to go through this?
  • Is your business plan strategic? Does it clearly articulate your goals and vision?
  • Have you meet all of the identified criteria to be eligible for the grant?

So what next?

Like many things in life, preparation is key. Ensure that you are aware of what grant you are applying for and which documentation you need to complete prior to lodging.

To read more about small business and grant funding, click here. 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.