Obviously you will only take the steps to protect your new ideas if you think they have commercial value. This next section discusses several options you can explore to turn your idea into profit.

Finding money and business partners

If you own IP and have completed your business plan professionally you may discover you need external funding to ensure growth and success.

You can raise money in two main ways:

• Debt financing: borrowing where assets (e.g. the business owner’s home) secure the loan, or
• Seeking venture capital: where an investor basically buys a share of your business.

Venture capitalists can often fill the hole left by lending institutions wary of new businesses, especially when they have a new and relatively untested idea. Funding to a start-up company is called providing seed capital. The venture capitalist often nominates a director to the company and carefully monitors the financial accounts. Be aware that to cover the high risks associated with new ideas and businesses, venture capitalists will try to negotiate potential high returns.

A joint venture agreement between a business owner and a venture capitalist should cover all the responsibilities and rights of both parties. It is essential to get legal assistance in drafting this type of agreement. The agreement will also set out the nature, ownership and responsibilities for IP rights, which is often what the business owner uses as a bargaining chip for securing venture capital. The agreement should also outline trade restraint provisions if a partner leaves the joint venture.

Government Help

Government assistance may come from tax incentives or grants. AusIndustry delivers a range
of innovation grants, small business services, tax and duty concessions, industry support, and venture capital products. Some assistance programs you may qualify for include:

• The COMET (Commercialising Emerging Technologies) scheme provides funds for early growth stage businesses for commercialising emerging technologies. COMET is a merit based Commonwealth Government program focussing on innovation and its commercialisation. It is for early growth or spin-off enterprises and individuals that could use help to commercialise an innovative product, process or service. For those eligible, COMET can support them with raising capital from business angels or venture capital funds; borrowing money, licensing, joint ventures or strategic alliances.
  
  
• The Innovation Investment Fund is a venture capital program that invests in nine private sector venture capital funds to assist small companies in the early stages of development to commercialise the outcomes of Australia’s research and development capability.
  
  
• The Research & Development Tax Concession is a broad-based, market driven tax concession which allows companies to deduct up to 125% of qualifying expenditure incurred on R&D activities when lodging their corporate tax return.
  
  
• The Small Business Enterprise Culture Program aims to develop and enhance the business skills of small business owner-managers and demonstrate the contribution that such skills can make to business viability and growth. It provides competitive grants for initiatives designed to enhance small businesses access to skills development and mentoring.
  
  
• The Small Business Incubator Program provides funding to not-for-profit organisations (such as local economic development agencies, local community organisations and Business Enterprise Centres) to help meet the infrastructure and set-up costs of new small business incubators. Tenant businesses are provided with an initial place of operation and a supportive environment in which to grow their business, before graduating into the wider business community.
  

For more information on the programs described above and many more, visit www.ausindustry.gov.au.

Other forms of government assistance available:

• If you intend to develop overseas markets, there is the Export Market Development Grant (EMDG) administered by Austrade. EMDG encourages small and medium sized Australian businesses to develop export markets. Applicants may be reimbursed up to 50% of expenses incurred on eligible export promotional activities, less the first $15,000. Visit www.austrade.gov.au for more information.
  
  
• Contact your State Government for an extensive range of assistance provided to small, innovative businesses.