A wise person once said that you have to speculate to accumulate.  This is absolutely true in the case of innovation and your business.  If you always do what you have always done, you will always get what you have always got.  This is true of companies. They cannot simply create then rest on their laurels.  They must continue to innovate and experiment in order for their businesses to grow and prosper.

While more Australian companies are beginning to realise that innovation has a strong business case in its own right, many are still failing to access the government funding opportunities geared towards developing, commercialising and implementing new sustainable technologies.

Understanding that there is often a lag between investment and revenue, the Australian and all State and Territory governments provide a range of incentives to encourage companies to make investments that will lead to positive economic, social and environmental benefits.

There are over 800 government assistance programs, with often complex eligibility and administrative guidelines.  It is difficult to access them without taking a lot of time out of your business trudging through legislation and regulations.

I’ve worked on “both sides of the fence” over the past 15 years with experience in both government grants administration and in helping companies apply for grants as a consultant.

So, here are a few pointers on finding and accessing grants.

Step 1 – Selecting the Right Project

It goes without saying but you need to ensure that this project is the right project for the company.  Will it be good for the company?  Is it aligned with your core business?  Is there a demonstrated market need?  Do you have the skills and resources to undertake the project?  Will it provide a good return on investment?

A key point is to be market-driven, not grant-driven.  In just about every case, you will be contributing funds to the project so ensure that it makes sense for you.  Most grants are prospective, so try and think about possible government funding well ahead of time.

If you need any assistance with business planning, intellectual property protection, marketing, financial planning, accounting or any other aspect of running a business, there are plenty of professionals to assist.  The government often puts on free or reasonably priced sessions as well.

Step 2 – Is it Right for the Government?

Once you’ve established that this is the right project for you, you need to broadly evaluate whether the government is likely to support it.  Governments generally fund projects that contribute to the economic, social and/or environmental development of their target area.  There are billions of dollars available for projects that involve innovation, R&D, export, commercialisation, regional development, entrepreneurship, industry restructuring, capacity building and sustainability.

Government priorities change from time to time so keep abreast of new and revised policies and programs through the media, Federal and State Government Budgets and network events.  It is useful to build relationships with relevant agencies before you intend to apply for grants.  This could be AusIndustry, Austrade or the Australian Greenhouse Office at the National level or the various economic, industry, innovation and environmental agencies at the State level.  Small Business Field Officers, Area Consultative Committees, Regional Economic Development Organisations and your local Council Economic Development Unit will all be useful contacts.

In all of your relationships with government agencies, think of them the same way you would a customer.  How can you help them meet their objectives?  How can you provide this benefit better than other applicants? 

Step 3 – Locating the Right Grant

The first step is to research what’s currently available.  A good national website is www.grantslink.gov.au which covers most Federal Government programs and also provides links to relevant State Government websites.  You can search through a number of categories but don’t be too constrained.  For example, a renewable energy project might find relevant programs under “Environment and Heritage”, “Business and Industry” and “Science and Technology”.

You then need to study the program’s processes and rules.  Is there a good fit between your project and the government program?  Will both parties get something of value out of a successful application?

Step 4 – Get off on the Right Foot

It is important that you get off on the right foot and stay there.  As much as possible, seek government “buy-in” before putting too many words on paper.  You might find that the program officer will assist you in framing your application.  However, understand the different roles as early as possible.  What is the role of the program officer?  Does the program officer simply guide you or are they also an assessor or decision-maker?

Regardless of who you are dealing with, put as much effort into building the relationship as you do the application form.  Be professional, honest and respectful at all times.  Seek out an external sounding board if you need to try out crazy ideas or vent your spleen.

Always keep in mind that governments like to offer “seed” money not “bleed” money.  The government funding should provide the leverage to create sustainable change in your business.  It is not an open invitation to keep coming back for more.  However, if you can demonstrate value for money in your last grant project, you are not often excluded from further applications.  The key is to think “good money after good” not good money after bad”.

Always be driven by getting your best application together rather than achieving a particular deadline.  A half-baked proposal lodged by a deadline will damage your credibility and almost certainly result in a rejection.

Step 5 – Preparing the Right Application

A government grant application should highlight the benefits in your proposal.  If it is a competitive grant, then highlight the “wow factor”.  You will be competing with many other applicants and you don’t want to miss out because you excluded or buried your key points.  Ensure that the benefits are communicated clearly throughout the document.

Remember to keep in mind the public and external benefits that are often the justification for governments investing in your project.  If all of the resulting benefits will be captured by your company, then there may be little public benefit in the project.  The government will want to see public returns such as increased employment, scientific reputation, profitability, efficiency, exports, social or environmental improvements or international competitiveness.

It should go without saying, but ensure that you address the eligibility and merit criteria and can also meet any grant conditions should you be successful.

Be concise and comprehensive in your application.  Try to avoid technical jargon wherever possible, use the correct format, use diagrams and charts whenever possible, answer all questions, address any risks or weaknesses, don’t use absolutes (no barriers, no risk, no competitors), don’t hide critical information in an attachment and  “zoom in” to demonstrate understanding of your place in the industry, market and supply chain.

Don’t be over optimistic with your budget and timeframes.  You will look much better to come in under budget and on time than to have been unrealistic and to be asking for extensions of time and/or money.  Factor in a contingency buffer.

Ask your program officer if he or she is able to review a draft application and provide comments.  Ask others too, as when you are involved in writing a grant, you can often find it hard to see “the wood for the trees”.

Step 6 – Stay on the Right Track

Once you’ve got the grant, ensure that you continue the good relationship with the agency and complete all reporting on time.  If you have a problem, talk with them early rather than letting it get out of hand.  Most programs allow for some flexibility due to changing circumstances.

Contact

Paul Hodgson has 15 years’ experience in government grants and incentives, firstly with AusIndustry and then as Director of a Big 4 professional services firm before establishing his own consultancy early in 2006.

Sustainnovation® Pty Ltd helps companies identify and apply for a range of incentives such as the R&D Tax Concession and Offset, the Renewable Energy Development Initiative (REDI), Water Smart Australia, Queensland EcoBiz, Commercial Ready, COMET and Queensland’s EcoBiz, Innovation Start-Up Scheme and Sustainable Energy Innovation Fund.

For more information, visit www.sustainnovation.com.au, call Director, Paul Hodgson on (07) 3470 0630, 0421 052 091, or email This email address is being protected from spam bots, you need Javascript enabled to view it .  You can subscribe to their monthly e-Newsletter by visiting www.sustainnovation.com.au/news.php.