Subsidies for consulting services for paint stores

The German Federal Office of Economics and Export Control (BAFA) has launched a funding program entitled "Promotion of Management Consultancy for SMEs". It can provide financial support to small and medium-sized enterprises (SMEs) for the use of consulting services.

Paint stores today are confronted with a variety of challenges. In addition to the shortage of specialists and workers, which is a topic of discussion on all sides, rising energy and raw material costs are worthy of mention, especially in the past two years. In addition, there are often challenges posed by staff turnover, demographic change and unstable supply chains. And then, finally, there is the customer, who wants to be supplied on time and expresses wishes for better quality and lower costs.

In the day-to-day business of a coating company, the entrepreneurs and managers are busy putting out the various "little fires" that flare up from time to time due to the multitude of challenges. "Preventive fire protection" in the sense of sustainable process optimization rarely or never takes place due to lack of time.

In these cases, consulting and support from an external expert is a sensible way to identify optimization potential. In addition, new ideas are brought into the company by external experts, or existing concepts are given new impetus and variations. If it is then also possible to integrate the employees into such a project, one also experiences a considerable increase in motivation. In reality, however, independent management consulting is rarely considered because SMEs in particular are deterred by the supposedly high costs.

This is where the BAFA funding program comes in. Since January 2023, consulting services have been financially supported. This support also enables small and medium-sized paint stores to increase their competitiveness, optimize their business and painting processes, and reduce costs.

Funding is provided for conceptually and individually conducted consulting services based on the principle of "help for self-help":

• What is going wrong?
• Why is it going wrong?
• What can be done about it?
• How does the implementation of the measures work?

Funding is available for legally independent companies in the commercial sector and liberal professions with their registered office and business operations in Germany. By definition, SMEs may have a maximum of 250 employees and annual sales of no more than €50 million. The consultant must be registered with BAFA and have a BAFA ID for this funding program.

The amount of the subsidy depends on the location of the advised company. An assessment basis of €3,500 per consultancy applies and the following funding rates apply:

• New federal states, region of Lüneburg, region of Trier (without state of Berlin, without region of Leipzig) maximum € 14,000 for a total of 5 consultations (funding rate 80%).
• Old federal states, state of Berlin, region of Leipzig (without region of Lüneburg, without region of Trier) maximum € 8,750 for a total of 5 consultations (funding rate 50%)

During the entire term of the BAFA program from Jan. 1, 2023 to Dec. 31, 2023, companies can take advantage of up to 5 funded consultations. A maximum of two consultations per year are eligible and a consultation may not exceed 5 days (40 hours).

Taking these boundary conditions into account, Markus Vüllers Coaching recommends starting with a 3-day as-is analysis of the painting and logistics processes on site at the painting companies. With 35 years of professional experience, weak points can be identified, optimization potential can be worked out and a guideline for action can be drawn up. In the further course of the funding period, further projects can then be carried out jointly in which optimization proposals are implemented.

Many companies in the painting industry that can benefit from this support program are deterred in advance because they expect a high administrative and workload. The all-clear can be given here. On the one hand, the effort is definitely kept within limits and on the other hand, Markus Vüllers Coaching also supports its customers with all formalities on the way to the subsidy. Nevertheless there are a few important rules, which must be kept:

• Before the start of a consultation, it must be applied for at the BAFA. It is checked whether the consultant is registered and whether the advised company is an SME and fulfills the funding requirements.
• After the permission to start consulting, it can be started. As a rule, this process takes 1-2 days.
• After the consulting project is completed within the deadlines (6 months), the funding application is submitted. This includes the consulting report (from the consultant) and various forms that are uploaded via BAFA's online platform.
• There are a few important formalities to consider in order to avoid queries and hearing letters.

For individual clarification, Markus Vüllers Coaching offers a free consultation. (OM-1/23)