Government grants are a great way to gain additional funding for your product development journey. The process can be time-consuming but having worked with a number of companies who have done this successfully, the pay-off is worth it. Aside from developing the product itself, the no.1 stress factor for companies is managing cash-flow to get the product to market. The first unit that drops off the production line is expensive so financial help during design and development is incredibly valuable, particularly if it’s in the form of a grant.
There are many Government grants available especially for R & D and innovation. We have put together a brief list of Government grants we currently know about that are relevant to product development start-ups:
This is the flagship initiative for business competitiveness and productivity. The program has many grants that sit within it including:
- Business Growth Grant: This a service of the Entrepreneurs Programme.
It reimburses businesses for up to half of the cost of engaging a service provider, to a max of $20,000 (ex. GST). You can utilise the grant to engage external expertise to help your business implement improvements through a:
- Business evaluation
- Supply Chain facilitation
- Growth service
- Tourism Partnership Service
- Accelerating Commercialisation Grant: This provides businesses with access to expert advice and matched funding of up to $1 million to cover eligible commercialisation costs to help them take novel products, processes and services to market.
- Innovation Connections: This provides businesses with access to a highly skilled facilitators for the purpose of reviewing the business’ research needs. Up to $50,000 in matched funding support is available to the business, should it choose to fund the project with the recommendation of the facilitator.
This can be a great incentive for businesses to increase their R&D whilst controlling costs. It provides a tax offset for some of a company’s cost of doing eligible research activities. Tax offsets can be in the region of 43.5% or 38.5%. Applications are ongoing, however, companies must ensure they register their R & D activities within 10 months of their income first year.
Australia’s Commonwealth Scientific and Industrial Research Organisation CSIRO offers programs for start-ups that are interested in partnering in research activities. They can secure up to $50,000 in matched funding to help them grow their business. This could give your business the ability to:
- Research new ideas with commercial potential
- Develop a novel or improved product
- Test a novel product or material
A great resource we have come across is Grant Guru. This website helps you filter through the grants available to your specific project and provides you with tips on how to apply and the difficulty level of the application process. Some grants are competitive, everyone vying for a “lion’s” share so a good way to get a head of the pack is to research who was previously successful and find out how they structured their application.
We hope this has been useful and wish you luck in your fund-raising journey.