Securing funding for a business, whether a start-up or an established one, can make a significant difference in its success. Funding provides opportunities to grow and thrive, and many government and private organisations recognise the value of funding in fostering economic growth. As a result, they provide resources that support entrepreneurs, including financial assistance.
New Zealand has many opportunities for entrepreneurs, and here we have compiled a list you can reference to help you get the funding you need for success. Additionally, we’ll cover best practices that will assist you in securing funds.
Opportunities for New Businesses
Starting a business requires a significant financial investment. To establish everything necessary to get your business up and running, you need the means to fund it. The amount required varies depending on your business type. For instance, someone starting a marketing firm may need less funding than someone starting a shop, which requires building an inventory of products and marketing the business.
The New Zealand government offers subsidies to ease the financial burden of establishing operations, but there are also government grants and funding opportunities to support you as well. A primary resource for new businesses looking for funding is Work and Income New Zealand (WINZ). It provides several grant options, depending on your business needs or situation. These include:
- Flexi-Wage for Self-Employment – this grant is designed to help cover essential living and business expenses as you’re setting up your operations. It’s available for those out of work or facing barriers in getting or holding onto employment.
- Self-Employment Start-up Payment – this grant is designed to help cover the essential expenses of starting a new business, such as building product inventory or furnishing an office.
- Business Training and Advice Grant – this grant helps new business owners access training to enhance their operations.
For tech start-ups, you’ll want to explore Callaghan Innovation and its grants under its ‘Deep Tech Incubator’. For businesses in the early stages of development, it offers two grants:
- New to R&D Grant – this grant is designed to help fund research and development for tech startups that are just getting started. Depending on the business’s existing spending and funding, this grant may be applicable for established businesses as well, but given the stringent requirements, this is likely best suited for new start-ups.
- Ārohia Trailblazer Grant – this grant is designed for tech startups who have already completed a significant portion of research and development and are now preparing to go to market.
Callaghan Innovation also has a host of other grants that both startups and established tech businesses can apply for, which we’ll explore further in the following section.
Opportunities for Existing Business
For existing businesses, grant and funding options are available from the government and private organisations. Unlike start-up funding options, which provide a financial cushion, these options typically come with more stringent requirements to secure and maintain funding. These requirements will vary by grant but might include businesses matching grant amounts or placing the funds directly towards specific initiatives like community or education partners.
The Regional Business Partner Network offers funding through its Regional Business Partner Capability Vouchers. These provide businesses with $5,000 annually to invest in growing their businesses and increasing their efficiency through management training. The training typically focuses on specific areas like business planning and business management.
While the Regional Business Partner Capability Vouchers are some of the most notable funding opportunities for a broad range of businesses, tech-based businesses have a few more opportunities through Callaghan Innovation. These grants are available to both start-ups and established businesses. The opportunities include:
- R&D Experience Grant – this grant funds the employment of students to help provide them with a living wage while they gain experience with your business.
- R&D Career Grant – this grant funds the employment of new PhD and Master’s graduates, enabling them to gain experience to jump-start their careers.
- R&D Tax Incentive – this initiative will give selected businesses a 15% tax benefit for qualifying expenses.
These grants provide opportunities for businesses to continue their growth with additional financial resources and, in some cases, help businesses expand their talent pool, fostering growth.
Practical Tips for a Successful Funding Application
When you begin applying for business funding, you should take every possible step to ensure success, just as you would want to enhance your chances of winning when playing a strategy-based game of chance. There are a few best practices you can do before applying that will help you and your business stand out during the application process and increase the odds of securing the funding you need. These practices include crafting a business plan and seeking advice or mentorship.
Craft a Comprehensive and Compelling Business Plan
The grant and funding application process requires a detailed review of your business to determine if it fits a specific grant. A business plan is essential to clearly communicate essential information about your business. Within a business plan, you’ll want to ensure you include your business’s vision and mission, market research, financial projections, and a strong value proposition. This information should be compiled in an easy-to-read and engaging document that clearly explains to the grant and funding reviewers how your business will use the funding you’re applying for.
Seek Advice and Mentorship
Running a business is a daunting task, particularly when you’re starting out. Taking the time to seek advice or find a mentor from other businesses is incredibly valuable. Mentors can help you assess your application to ensure you meet all the requirements and tailor it to appeal to grant reviewers. They can also provide you with general insights for navigating entrepreneurship, helping you find success after you secure funding and start focusing on your business goals.
