Why is funding vital to scale up?
Reports show that starting up is easier than scaling up when it comes to startup development. You get an idea to address an urgent global/local challenge, write up a business plan, pitch your idea on a crowdfunding platform or ask your rich friends to invest and you’re good to go! But it is the next phase that’s more worrisome. As you could read in one of our previous blogs, 90% of all startups fail. And most don’t survive more than five years. Hence, the question is: how do you bridge that gap between a startup and an established SME? How do you scale up? Read on to see why getting funded is inevitable in this process!
1. Subsidies are needed to attract VC investors
Let’s face it: if you get funded by the government, your business will become increasingly recognized by private investors, too. With more money in store, your company could spend much more on getting the marketing and sales strategy right, hence attracting new investors on board. However, this is not the only advantage that your company will get once funded. Working on your Research and Development (R&D) plan and carrying it out may also spark investors’ interest. This is because investors are commonly found to be working actively with prospect clients. In sum, if your company is to scale up, the best way to get there is to get a subsidy with us and then work with people active in the R&D sector, that are investing on the side. This way, you might get funded by them and your worries about scaling up may be gone.
2. Subsidies attract management expertise
According to several sources, a key reason why startups fail to get into the ‘established SME’ phase is because they miss several types of skills or expertise in their team (Douglas, 2016) (De Witte, 2019). Hence, if applying for a subsidy with us and then getting funded, you may find your company prosper, because the expertise you’ve lacked may now be within reach. Imagine showing off your earned subsidy on job vacancies. Prospect employees may definitely become (increasingly) attracted to your company once it gets funded. In another case, once it turns out that you are the winner of a given subsidy, the management expertise you’ve missed may come to you the same day and shake hands, interested in planning a coffee meeting with you. Consequently, this may lead into an onboarding and voila – your company may become richer with this added value of a certain expertise.
3. Subsidies make your business increasingly attractive to clients
This is a point that should be more than obvious. The world becomes brighter once you get funded! Opportunities you’ve never seen before suddenly open up. This includes getting recognition from potential clients. Once getting a subsidy and attending a networking event, you should definitely mention that you’ve received this type of funding, because the given potential client may then see you as a more successful, financially secure company than the rest. Show it off! As was already mentioned, with a subsidy, you’ll suddenly be able to invest more into marketing and sales, promoting your product or service more and hence attracting more clients. Doesn’t that sound great? Well, pitch your project now and we’ll hope to see your success story soon!
4. If you get one subsidy, you are likely to get more
This is another self-explanatory point, isn’t it? Once you get funded by the government, chances are you’ll come back to us later to apply for some more subsidies. This is because we guarantee a highly qualified team of subsidy consultants who both have a lot of work experience in applying for a variety of subsidies and have close ties with the Dutch government. Hence, we can almost guarantee that we can grant you any subsidy you’d want! So, after getting your first subsidy, you are both likely to apply for more and likely to get more subsidies granted. This is because you’d create a powerful reputation, once getting funded.
5. With subsidies, your network may expand
Another way to scale up is through establishing a wide network of people with a lot of dedication, money and expertise. With funding, opportunities widen. So, being one or more subsidies richer, your network of potential clients, partners, employees and other parties may expand. Why? Because with subsidies, you will automatically be introduced to connections who will introduce you further. In need of a software developer? Ask the geeky guy you’ve met during the exclusive networking event you’ve been to. In need of an investor? Ask the woman with a lot of connections in this space, met at another event. With subsidies, you and your company will become (more) popular and well-known, take it or leave it. Seize the day, then! Take every opportunity and network as much as you can.
By now, you should have enough reasons why funding; subsides, are vital for your company to scale up. Namely, subsidies open the door to unforeseen opportunities; in terms of connections, clients, needed expertise and private investors. Subsidies open the doors to more subsidies; more money to support your innovative purposes. Most importantly, subsidies bridge the gap between a startup status and the status of an established SME. Apply now! Or contact us for more information about this type of funding.