Whatever industry you’re in, developing bespoke software, tailored to your needs, can take you to the next level.
Whether it’s time-tracking for your staff, an app to keep all projects in one place or the ability to streamline your invoicing process, automating at least part of your work can pay out huge dividends in both time and money.
But all too often, it’s money that is the barrier to businesses creating the apps that could help them grow.
However, financial support is available for firms to work with software developers such as ourselves – you just need to know where to look.
Traditional funding routes
These are your grants; money from central or local government that does not have to be repaid. It will generally cover part of your project’s costs, and may be restricted in terms of what it can be used for.
Digital Drive is one such example, offering funding support of up 40 per cent towards the cost of digital consultancy projects, equipment to help improve your business through digital technology, website, app or software building and broadband infrastructure and installation.
In the Tees Valley, Tees Valley Business offers up to 55 per cent funding on projects valued up to £90,900, part funded by the European Regional Development Fund, and this can include digitalisation.
Meanwhile, Teesside University’s Growth Spark Fund can help innovative SMEs access the funding they need to grow. Grants are available of up to 50 per cent of the project costs, contributions are up to £15,000.
The North East Business Support Fund also has a range of financial assistance for those looking to invest in software to grow their business, while Digital City have various funding pots to help at the early stages of an idea.
Partnerships or joint ventures
Many software companies can – and will – join forces with people who have a good idea to bring it to life.
The financial aspect would need agreeing between all parties, but most companies realise it is better to own a smaller percentage of something that could be profitable, rather than 100% of nothing. This means both parties are sharing the risk in exchange for a share of future profits.
The major benefit of working this way is that any digital project will need experts to help manage, develop and support it; this way, you’ll have them on hand.
Investments
Venture capitalists and independent investors will often invest in early-stage companies that don’t have any software developed, but do have a ground-breaking idea, always assuming the numbers work.
However, this route isn’t for the faint-hearted; venture capitalists are only focused on growth and will want a stake – and often a say – in your business. However, on the flipside, you can also benefit from their expertise and contacts.
Other routes
It’s also worth considering research and development tax credits, which can be claimed on the initial software investment to reduce any corporation tax bill.
Additionally, software investments can also be classed as a capital expenditure on the balance sheet, which also brings with it an element of tax relief.
Both of these options are the preserve of your accountants and won’t cover the cost of the investment, but every little helps.
If you have a software project you’d like to discuss, whether you have funding in place or you’re going it alone, contact our team on 01642 955645 or email sales@sapere.co.uk.