Funding is a major consideration when starting a business. A lot of people would think they will not succeed without proper and consistent backing. With VCs and angels, one would think securing funding will be a breeze. There is always an option provided, so the next step is to choose a win-win situation.
With this, we have compiled a list of options that you can check out. Depending on where you are in your business, you have a few to that you can look into. If you have done your research but still can’t figure out what options best fit your business, ask your accountant to assist you. He can lay down the options and present their corresponding pros and cons.
Australia’s small business grants vary from state to state. But an organization created a Grant Finder online tool which helps small businesses find Government Grants. All you need to do is to answer seven questions. After completing the survey, it will lay out a possible funding amount you can receive some grants from the government. It will provide you with codes to help you in the next step. Note though that this is a sample amount only.
To finally find out the value and probability, you will need to complete the steps by providing your basic credentials. There is a pre-written email content with the information you just filled up with the questions you answered. All you need to do is fill up the form and click on submit. The purpose of the tool is to assess eligibility. Once you finish this step, and you have been informed of the grants, you will then need to process with the appropriate government agencies to which the grants are provided from. You can find the Grant Finder here. Alternatively, you can always go direct to the government page on grants and assistance and proceed from there.
An incubator is a support system that comes with resources needed to start a business. They provided these resources in exchange for equity. These resources can be in the form of new business models, co-working spaces, hubs, and accelerators. You can look at the Business Innovation and Incubation Australia for this activity.
Also called business angels, these are investors who prefer to have direct involvement or as mentors in the business. They usually provide capital or a network of contacts to benefit the business. For a fee, the Australian Business Angels match your needs to the criteria of a private investor.
Crowdfunding is a way to finance your business by asking donations from the public through a crowdfunding site. In turn, you can offer incentives and rewards according to how much they donate.
Equity funding is a way to source funds for small businesses by offering some form of “equity” such as shares or stock. At times, small businesses use internal equity to avoid paying high premiums with external equity financing.
The Future of Small Businesses
According to a report in 2014 by Startup Muster, released last year, 66% of startups have never raised funding. However, the updated report for 2015 revealed positive for startups, with additional avenues for securing funding.
Positive means new opportunities for your business. “Give it a go,” as the Aussie ethos say.
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