Posted: 05 June 2020

Crowd Sourced Funding And The Rejuvenated Business Scene In The Northern Territory

Empowering SMEs (Issue 061)

Want to learn more about ESS Small Business? (Click here)

Greetings from ESS Small Business.

Thousands of business owners and team members have been working from home for the last 2-3 months and may have given some thought to the development of new products, processes or services by undertaking some initial research and development. They might now be wondering whether they should continue to work on this business idea to see whether a commercial product or service could be developed and whether they could obtain a taxation deduction for the expenditure that they have incurred. If you're one of these people – congratulations because Australia needs to develop new products and services.

In our special webinar to be held on Wednesday 10th June 2020, Peter Towers, Managing Director, ESS Small Business (www.esssmallbusiness.com.au) will give you an overview of the Australian government’s Research and Development Scheme so that you have a better understanding of the process that you need to implement if you are going to be able to claim the research and development tax offset and set yourself on a path to be able to develop your idea into a commercial product and bring it to market.

Our other keynote speaker is Ash Evans, Director/Co-Founder/Lending Manager, AAA+ Financial Solutions (http://www.aaafs.com.au/). Ash, a former Bank Manager, will give you an overview of the financing that's available for a wide range of businesses, including farming and grazing and property ownership. It is expected that there'll be difficulties in obtaining loans from banks from October onwards and Ash’s presentation will be very beneficial to many SMEs who are considering what opportunities they'll have to organise their business' finances when the government support for businesses affected by COVID-19 finishes.

You can register for the free webinar on Wednesday 10th June 2020 featuring Peter Towers discussing research and development and Ash Evans discussing financing the business by clicking here.

Last Wednesday (3.6.20) we had two very interesting presentations:

Andrew Ward one of the Founders of Crowd Sourced Funding Equity Raising in Australia and a long-term Independent Director of Crowdfunding Institute of Australia, commented on “Concerns About SMEs in the Post Pandemic Economy”.

Andrew Ward indicated that “Things are going to get worst in the commercial world". He said that "he believes that the Australian and State and Territory governments will retreat from grants from October onwards and that banks will be very difficult to deal with by SMEs from October onwards".

He indicated “the whole world is about to get a bit shaky".

“Crowd Sourced Funding might be the way to get capital, but it’s not easy and it is expensive".

“If a business is able to obtain debt finance, interest rates are at record low levels at present and the loan application is a fairly simple process".

“However, from October onwards many businesses will have difficulty in convincing banks to lend money and therefore it may be advisable to consider Crowd Sourced Funding Equity Raising".

“To successfully utilise Crowd Sourced Funding you need to create a story that engages people. It’s hard work".

“There is a fairly tough due diligence process. Crowd Sourced Funding Equity Raising is expensive when compared to borrowing money from a bank".

“Crowd Sourced Funding is starting to get traction in Australia from the potential audience of 1 million small and medium-sized enterprises that hold ABNs in Australia".

“Only 55 out of the 1 million potential applicants for Crowd Sourced Funding have done so at present and have raised a total of $39 million".

Andrew Ward added “It’s just not about the money".

“You don’t have to repay the money invested in the company, nor do you have to pay interest on those funds".

“There is a heap more benefits than just the money that comes into the business".

“In the difficult times ahead, many businesses are going to benefit by having a 'rallying point' which will comprise employees, customers, suppliers, friends and neighbours who are aware of your business and support your business by becoming customers".

“This 'rallying point' is very important and beneficial to the business' success”.

You can listen to the full presentation made by Andrew Ward in the webinar recording.

“Business life in the Northern Territory is starting to return to normal for some business operators, but unfortunately some will miss out significantly for probably the next 18 months. The businesses which will suffer include the tourist industry and international travel.” Geoff Goodrich, Darwin Business Operator, Founder and Ambassador of “Territory Proud” (a 380 strong business organisation in the Northern Territory).

“The big lesson for people is to closely review their costs to operate their business and to ensure that they maintain close communications with their customers and potential customers".

“There is an expectation that arranging suitable finance for businesses will be difficult, especially once the Federal government’s JobKeeper Program ends, although there is some optimism that the JobKeeper Program will be extended to the tourism industry to assist in the current downturn".

“Business operators will also benefit from conducting business review meetings, on a monthly basis, and using their business networks through industry associations to communicate with other business operators".

“Some of the businesses in the Northern Territory will be interested in seeking to raise capital utilising Crowd Sourced Funding Equity Raising".

You can listen to the full presentation made by Geoff Goodrich in the webinar recording.

You can listen to the full webinar recording by clicking here.

We would like to invite you to visit the ESS Small Business' website > Survival in Difficult Times > Learn More where you will find details of the products that ESS Small Business has developed to assist small businesses and medium-sized enterprises to gain a better understanding of strategies which will assist you to survive in your business.

Do you want to know more?