he Queensland government's Business Boost Grant for small businesses is run through The Department of Employment, Small business and Training (DESBT) with the goal to support businesses and advance improvements in efficiency and productivity. Although the department managing it didn't pick the best acronym, this grant is game-changing for businesses with a turnover of between $300,000-$600,000 in the financial year 2020-21.
Funding!? What funding?
If successful, the applicant will receive up to $15,000 (excluding GST) upon completing the proposed project and compliant acquittal documentation. A complex term to confirm you hold up your end of the bargain.
The kicker is that successful applicants must co-contribute 30% of the total project costs. Which is the evidence needed for the acquittal documentation.
Funding example
Julie and Justin are partners in a homebrewing shop located in a community-driven town in Queensland. They've been discussing selling their goods online but have always been hesitant with the extra work and costs associated. Local Business Accelerator provides a complete proposal for a project with an eCommerce store, filled with 50 items already stocked in-store, an SKU structure, automated postage, customer relationship automation flow, customer relationship system and a clear, simple cybersecurity policy. The total project cost is $21,431. Julie and Justin, with assistance from Local Business Accelerator, submit a grant application. It gets approved (yay!). DESBT will contribute $15,000, and Julie and Justin need to cover the remaining $6,431 out of pocket.
Over the next 6-12 months, Local Business Accelerator rolls out their brand new shop front. Instead of being a physical location with all the costs associated, it's a digital shopfront servicing customers around Australia. In addition, it automates the majority of the sales process, only falling short of physically picking and packing the order. The new digital shopfront also draws plenty of new foot traffic to their Queensland based local shop. The new business and foot traffic allows Julie and Justin to hire some new employees and expand their products to new niches. Let's dig into a few crucial details about the Queensland Government Boost Grant.
The project must be in:
- future planning
- specialisation and automated software
- staff management, development and planning
Outcomes for the projects:
- boost turnover, profit, and employment
- increase business confidence/skills
- improve business resilience and survivability
The nitty-gritty of the grant
The grant uses a competitive assessment process; therefore, not all applications will get funded. The assessment process assures that your application is in line with the project parameters listed above. It also prioritises "Queensland's diverse business populations" including regional Queenslanders.
The grant process is six steps, with the final being DESBT transferring the 70% once the project is completed. Keep in mind, step four provides the funding approval, and step five is where you front the 30% cash to the supplier, and step six is where DEBST transfers the 70% of project costs back to you to finalise the payment to the supplier.
If the total supplier costs (excluding GST) are less than $10,715, you will not be able to proceed with the application. Meaning the proposed project must be over $10,715.
Some of the questions requested in the grant application:
- Provide a description of the proposed project activities?
- How will the project advance improvements for your business, in terms of efficiency and productivity?
- How will the project assist your business to grow revenue, profit and create jobs?
Micro business definition
The Australian Tax Office (ATO) refers to micro-businesses as a business with less than $2 million annual turnover. In contrast, a small business have a turnover of between $2-10 million per annum.
Handy links for the business boost grant
Conclusion
The possibilities this grant offers businesses to improve operations and efficiencies can't be understated. The digital tools and automation available which, when implemented and managed by skilled providers (i.e. Local Business Accelerator) can increase and automate sales, minimise cybersecurity threats and open new channels for businesses to acquire customers and roll out new services.
If you or someone you know may be interested in this grant, get in touch with Local Business Accelerator's online presence experts and see what specialised and automated software solutions we can integrate into your business operations today.
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