There are plenty of resources available for Australian engineering entrepreneurs looking to launch their own venture.
Embarking on a solo venture can be daunting. It’s tricky to know where to start. You may have a brilliant idea for a product or business niche, but how do you know if it will work? How do you raise funds? And who can you ask for advice?
Thankfully, engineering entrepreneurs in Australia have access to various support and funding options, whether you’re looking to bring a new product to market or establish yourself as a consultant.
Here are some ways to gain traction.
1. Find your location innovation hub
Everyone’s first port of call should be their local startup or innovation hub, said Richelle McNae, Program Advisor for CSIRO’s ON Program, which has equipped thousands of researchers with entrepreneurial and commercialisation skills.
“This is where you can tap into an ecosystem of fellow entrepreneurs, investors, industry leaders and mentors,” McNae told create. “There’s Fishburners, Stone and Chalk, Cicada Innovations, and plenty of other support organisations dotted around Australia.”
These hubs tend to be industry-agnostic but run programs, education series and events focused on specific areas of interest, such as how to apply AI, how to fund your idea or how to pitch it to panels.
“Once you start exploring the ecosystem and attending events, you’ll find tailored programs and resources. It’s all about building that like-minded community so the next step isn’t so scary.”
Amy Yu, co-founder and CTO at Ventora Medical, a Melbourne-based medical startup creating a device to help premature babies breathe, now mentors students, graduates and researchers as they embark on their own entrepreneurial journeys.
“Just throw yourself into the space,” she said. “Network as much as you can. Whether you’re an inventor looking to create a new product or an engineering consultant looking to go out on your own, my first step would be to seek out those who are established in the industry, and learn from their mistakes and successes.
“There are also numerous innovation programs available, including university-aligned programs that support students, researchers and graduates, and industry-specific programs. They all have different offerings so it’s good to first understand what your needs are.”
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2. Understand the market and the problem you’re solving
Check there’s a market opportunity for your product or niche, and there’s not an existing solution already solving the problem.
“Conduct a market landscape, understand who the existing players are, then position your new product or business within that context. Ask yourself if you’re providing value to all stakeholders involved, whether that’s your users, customers or potential partners,” Yu said. “And speak to potential customers to determine exactly what their needs are.”
Stress testing the value of your idea is really important, McNae added.
“As we say in the ON Program, love the problem, not the solution. Make sure that someone other than your mum thinks you have a great idea.”
The Mom Test, written by entrepreneur Rob Fitzpatrick, helps you do precisely this: gather feedback from people who matter.
McNae also encourages entrepreneurs to test market demand as cheaply as possible before taking a big leap.
“This may be as simple as creating a free landing page with Squarespace or Wix to see if your customer conversations would convert to action.”
3. Seek funding
There are various federal government grants available for engineering entrepreneurs, such as the Biomedical Translation Fund, which provides venture capital to early-stage biomedical companies, and the Business Research and Innovation Initiative, which funds startups developing innovative solutions for government policy challenges.
The Future Made in Australia agenda provides up to $5 million to innovative startups to commercialise their ideas through the Industry Growth Program.
There are also a number of state-based grants such as LaunchVic and Advance Queensland.
Funding is available to specific sectors such as drought resilience, food or biosecurity, and also tailored towards categories such as female engineering entrepreneurs.
In addition, the R&D Tax Incentive allows you to claim back 43.5 per cent of your research and development expenses.
CSIRO also has a suite of programs and grant funding opportunities such as Kick-Start, which enables collaboration with CSIRO researchers.
Read more: How viable is crowdfunding as a model for engineering innovation?
4. Enter competitions and attend pitch events
Some grants are competition-based or require presenting your idea at an industry-specific event.
“In the early stages, pitch events are a great way to source feedback on your idea from industry insiders,” Yu said. “We targeted pitch events specific to health and medical technology, with panel members including investors or managers of accelerator programs in the field.”
McNae said you don’t need early traction to present an idea at a pitch event.
“You can pitch for a couple of thousand dollars in funding, just to get started.”
5. Gain commercial knowledge
Engineers often possess advanced technical skills and excel at designing products, but may lack commercial expertise, Yu said.
However, acquiring commercial and marketing knowhow can give you a competitive edge.
“If you plan to design a product for the market, try to broaden your expertise and knowledge into the business and commercial space. Developing a great product is just the beginning; convincing customers to adopt it is an entirely different challenge.”
6. Be determined
Entrepreneurship can be a bumpy ride, and self-belief is essential, Yu said.
“Going out on your own is nerve-wracking for everyone. Understanding that you’ll make mistakes helps, and remembering that each misstep is a valuable learning opportunity. And if you can learn from other people’s mistakes to avoid making them yourself, that’s even better.”
Entrepreneurs face failure and hear “no” every day, McNae added.
“It comes back to that first step of finding a network of people who have experience, or who you can trust as advisors or mentors, as well as peers who you can share the rollercoaster of entrepreneurship with.”