Where are you at in your business growth? Pre-launch? Launch? Beyond? Is your business growing but you need more money to support the growth in areas such as hiring new staff or purchasing more stock or new equipment?
We’re often asked for help with financing a business. We suggest five key paths as follows:
- Loans
- Grants
- Convertible Notes
- Equity funding
- Crowdfunding.
This article is part of a five-part series on how to finance your business. Are you in a particular industry that is of interest to the government? A grant may assist you.
Part 2 – Grants
Certain government grants are available for small businesses and startups to help you fund and grow your business. There are numerous grants available in various industries. Have a look here.
The principal advantage of funding your business using a grant is that they provide a way to receive capital for starting a business that does not involve giving away any equity or taking on debt obligations. There are many different industries with programs available, particularly for people who are low-income earners, are employing people with disabilities or are involved in export enterprises. Many grants provide capital, mentoring, training and interest-free loans.
The main disadvantage is that grants are generally hard to obtain. As few as 1 in 100 applicants may succeed, or less in a competitive field. The programs available are often specialised and come with eligibility requirements that are designed to give more vulnerable people in the community some added assistance in the creation or running of their own business. Grants are often difficult to get as there is a lot of competition, and they do come with their own requirements that your business must comply with when using the grant.
Conclusion
Is a grant right for you? Depending on the field in which you work, it may be a real option for funding your business.
If you need help to create a grant application, LegalVision can help you with this. LegalVision provides businesses and individuals with tailored online legal advice and agreements. Our experienced business lawyers can help you achieve your funding goals, so get in touch today. Call LegalVision on 1300 544 755.