Does “Unprecedented Times” Mean Your Business SHOULD Take A “$10k Handout” from Annastacia?
Ten grand is an interesting amount of money. It is enough money to actually make a small, significant difference in the short term. Used properly it might be enough to kick-start your business to get out of a hole. If you are struggling, that is. If you are not struggling – it might be used as a mini-turbo if used the right way. So – if you qualify, should you apply for it?
They (Qld Govt) are having trouble “giving away” this grant money in Regional Qld
https://www.business.qld.gov.au/starting-business/advice-support/grants/adaption
Today the money give-away sits at 100% gone for South East Qld, and about 72% for Regional Qld. They split it up, because the Brisbane corner are far more organized at collecting funds from government. In the first round of this process most of the funds were slurped up by trough-watchers and slippery business consultants. Also happened in the second round for SEQ. But it seems regional Queenslanders are not a good at rampaging to the trough. (And I like that.)
3600 Lots of $10K Adaption Grant Still Available
This second round is $100M, and we assume that this is split between Regional and Metro that means that 72% x $50M = $36M still available for regional. If everyone is smart enough to ask for the full $10k – that means there are 3,600 $10k Grants available if you apply.
There is a Qld election on soon. And giving away money is one good way to get votes (is that too cynical?).
Normally I am not a fan of “Grants” like this. I believe the majority of the funds are effectively wasted, or just go into the pockets of business consultants. There is a wide range of value to be found in consultants – from zero to excellent. But I am afraid the average value to a business owner from $10k invested with consultants if pretty dismal.
And a review of results gained should be in the answer to the question: “Would I have been happy with this outcome if that $10k had come out of my own wallet (or mortgage)?” Hell yes!! Or Hard no?
In usual times, I believe there other sources of finance to fund your growth. I believe it better to become self-reliant, to build the skills and processes that generate revenue some of which can be moved to new ventures or new growth areas. If you are already in business, and you have got your head straight , your strategy right, you understand the numbers, and can produce an product or service (experience is a better term), that is even a little bit above average – you should be making profits. And if you are making some profit – you can usually make more profit if you choose.
But – if the government is throwing money (that you contributed with your taxes and fees) – then perhaps consider opening the door to it? And while you are checking it out – make a point of checking out all the other sources of Grants, Loans and Allowances that our state and federal governments are spraying around. It is well worth the time if you are needing funds.
The uses for the Adaption Grant are very broad. From the official website:
The program aims to see small and micro businesses:
- prepare for the safe resumption of trading in the post COVID-19 recovery
- continue to meet operating costs
- access digital technologies to rebuild business operations and transition to a new way of doing business
- respond to online opportunities, where possible, to sustain employment and maintain potential for longer-term growth
- upskill and reskill business owners and staff to benefit from new technologies or business models
- embrace business diversification to adapt and sustain operations
- create or retain employment.
To be eligible your business must meet some basic criteria. The main being a 30% decline in one month since 23 March 2020 due to the onset and management of Covid19. Less than 20 employees (not include business owners), have an ABN, GST registered, turnover over $75k for 18/19 or 19/20, payroll less than $1.3M, not be insolvent or bankrupted owners.
I am not sure how over $75K includes “micro” businesses – but hey, it is what it is.
What can you buy with your Grant?
Read the page. https://www.business.qld.gov.au/starting-business/advice-support/grants/adaption But almost anything that you can offer decent story around that will improve your business. The most obvious is to upgrade your website to ecommerce, and get some online marketing going if you don’t already have it. (Do this anyway – with or without a grant.)
You can use it for operational costs – rent, rates, insurance. WTH! Yep – classic shotgun of money. Just pay some bills.
You can also use it for strategic coaching and business development planning. Sort of what I can help with – but seriously – if you need this to make your strategic development investment worthwhile – you have missed the point of business. If the Grant is just a bonus and you were going to get strategic help anyway – go for it. Otherwise use the money for expenses or some new signage.
Did I read that right? Maybe. If the only reason you are considering spending this grant money on consulting is because it is “free” – then use the money on something else. Increasing the strategic power of your business is something that requires you (the business owner) to invest your energy, time and desire into. It is not something that a consultant can rock in and just plop on your lap (this can happen – but is rare.) You might get some tactical improvements if you jag a great consultant – but without your full commitment you will not get the transformation that you probably want.
Transformation takes longer and costs more than $10k. But you can get some nice tactical benefits. Maybe.
So – get the Grant? I say yes. You fill out the forms, or if you need help to do that – I know someone who will help you fill it out for $550. (This is a good bet). It is not me. I would rather stab myself in the eye with a piece of wire that has been dipped in chili concentrate. Contact me quickly as there are teams of telemarketers calling regional businesses trying to find people to accept the money. Seriously.