Item: Baldwin Digital
Rating: 5
Author: Mark Baldwin

Are you a small business owner looking to expand your digital reach and boost online sales? The Trading Online Voucher (TOV) Scheme might be your stepping stone towards achieving greater online success.

This government-funded initiative by the Local Enterprise Office (LEO) supports small businesses to enhance their online trading capacities. If your business has fewer than 10 employees, and a turnover of less than €2m, read on to find out how you can benefit from this scheme, what the eligibility requirements are, and the steps to apply.

Key Takeaways

The Trading Online Voucher (TOV) Scheme is a government-funded initiative aimed at enhancing the online trading capabilities of small businesses with a turnover of less than €2m and fewer than 10 employees, which forms part of the Government’s National Digital Strategy.
Applicants for the TOV must attend a mandatory information session and submit a detailed application form along with three vendor quotes. The maximum voucher value is €2,500, requiring a minimum 10% to 50% co-funding from the business, calculated excluding VAT (percentage funding depends on the time of the offer).
The TOV funds a range of digital services like IT consultation, website enhancement, online payment systems, and digital marketing strategies, with support extending to free training sessions offered by local enterprise offices on website development, digital marketing, and SEO.

Exploring The Trading Online Voucher (TOV) Scheme

The Trading Online Voucher Scheme is a government-funded initiative designed to bolster the online trading capabilities of small businesses. Established as part of the Government’s National Digital Strategy, the scheme is a beacon for microbusinesses with limited e-commerce presence, assisting them in developing robust online trading practices through resources like the trading online voucher webinar.

The scheme is applicable to businesses with a turnover of less than €2m, fewer than 10 employees, and at least six months of trading history.

Understanding The TOV Scheme

The Trading Online Voucher Scheme primarily seeks to:

Strengthen the digital commerce abilities of small enterprises
Form an integral part of the National Digital Strategy
Bolster the digital reach of micro-enterprises

The scheme offers a crucial advantage to enterprises seeking to broaden their digital presence by focusing on those with minimal online trading activities.

Benefits Of The TOV Scheme

In the thriving Irish e-commerce industry, where consumers spend almost €850,000 every hour online, the TOV Scheme presents an opportunity for businesses to tap into this burgeoning market. The scheme supports businesses in:

Strengthening their digital capabilities
Expanding their reach
Boosting online sales
Aligning with the digital commerce trend.

Furthermore, strategic digital marketing efforts funded by the TOV can significantly increase sales and customer engagement.

Scheme Eligibility Requirements

Businesses must fulfill certain criteria to qualify for the TOV Scheme. This includes having a turnover of less than €2 million, employing 10 or fewer people, having at least six months of trading history as mentioned above, and operating within a commercial domain.

Certain business sectors, including companies with charitable status, commercial semi-state companies, and not-for-profit organisations not operating in a commercial domain, are excluded.

Furthermore, applications made by third parties on behalf of clients are not eligible for the scheme.

The Application Process For The TOV Scheme

Applying for the TOV Scheme involves a series of steps that start with attending a mandatory information session and end with submitting a detailed application form to the Local Enterprise Office. This process is designed to ensure that applicants fully understand the scheme and can effectively articulate how they plan to utilise the grant for business improvements.

Registering For The TOV Webinar

A half-day informational seminar is a prerequisite for applying to the TOV Scheme. Exclusively designed for business owners, this webinar offers invaluable insights into:

Website development
Reaching new demographics through digital marketing
Social media management
Search engine optimisation

Registration for this webinar is straightforward and can be done through the Local Enterprise Office’s website.

Completing The TOV Application Form

The competitive nature of the process necessitates careful detail when completing the TOV application form. The form requires proper business details, including company name, address, CRO number, a description of the business, and the proposed online trading project. Additionally, businesses must specify their needs for enhancing their online presence, such as IT consultation, development of a new e-commerce website, or creation of a digital marketing strategy.

Submitting Your TOV Application

Upon completion of the application form, it should either be submitted online via submit.com or saved as a PDF and emailed to the Local Enterprise Office. A successful application includes answering all essential questions, providing three vendor quotes (decision is yours who you choose to work with), and verifying the electronic signature.

It’s worth noting that decisions on applications are typically made within 1-4 weeks after submission, and voucher approval must be secured before incurring any expenses for the project.

Financial Aspects Of The TOV Scheme

The financial components of the TOV Scheme are integral to the application process. Here are some key points to note:

The maximum value of the scheme is €2,500.
Businesses are required to co-fund the project, contributing a minimum of 10% to 50% of the investment.
Businesses must be aware that these terms, including financial aspects, are subject to change at short notice.

Voucher Value & Co-Funding

The top value of the TOV is €2,500 or 50% of the eligible expenditure, depending on which is lower. This means that businesses are required to provide a co-funding match of 50% to avail of the scheme.

It’s important to remember that the eligible expenditure for the voucher scheme is calculated excluding VAT.

Managing The One Payment Phase

Management of the one payment phase is central to the TOV Scheme. Here, voucher approval must be obtained prior to incurring any expenses related to the project. Businesses wishing to claim the voucher must adhere to restrictions where online advertising and professional photography cannot exceed 30% and 80% of the total approved voucher costs, respectively.

All projects must be completed, and voucher claims submitted within six months from the date of approval.

Utilising The TOV For Digital Growth

The TOV Scheme serves as a launchpad for businesses venturing into the digital realm. The voucher funds a wide range of services including:

IT consultation
Development or upgrading of e-commerce websites
Implementing online payment or booking systems
Creating and executing a digital marketing strategy.

The scheme, which is a part of the government’s national digital strategy, significantly assists businesses in developing their digital capabilities to succeed in a predominantly online commercial environment.

Enhancing Your E-commerce Website

The TOV can be a game-changer when it comes to enhancing e-commerce websites. Whether it’s developing a new website or upgrading an existing one, the scheme provides the necessary funding. Extra functionalities such as payment facilities or booking systems can be incorporated, and ongoing subscription fees covered. Choosing Baldwin Digital as your supplier, we can offer a wide range of services such as web design, website maintenance, domain registration, hosting including the setup of your business email, SEO, Google Ads, logo design and much more.

Additionally, the voucher provides for visual and analytical enhancements by financing professional photography and website analytics.

Implementing A Digital Marketing Strategy

Expenses linked to enhancing a business’s online visibility are also covered by the TOV Scheme. This includes funding for search engine optimisation and graphic content for websites. Additionally, part of the voucher can be allocated for online advertising through platforms like Google and social media to extend market reach.

With the TOV Scheme, businesses can develop multi-platform webpages, apps, and an overall digital marketing strategy to enhance sales and market presence.

Advancing Your Social Media Presence

When it comes to social media, the TOV Scheme offers a significant boost. The voucher supports businesses in developing a refined social media marketing strategy that includes tailored content creation and strategic sponsored posts. Additionally, it provides funding for professional photography services, crucial for producing visually appealing content.

The scheme also enables businesses to access social media data analytics, providing valuable insights into their audience and optimising marketing strategies for targeted engagement.

After Approval: Executing Your Project

Upon approval of the TOV application, the emphasis moves to project execution. This involves choosing suppliers and managing the project timeline. It’s worth noting that suppliers for executing the TOV project can be located anywhere in the world, giving businesses a wide range of options.

If necessary, businesses can also apply for a second Trading Online Voucher if they require upgrades, after submitting a final claim for their first voucher.

Choosing The Right Suppliers

During the execution phase, selecting the appropriate suppliers is crucial. Here are the requirements for supplier quotes:

Applicants must submit three supplier quotes.
These suppliers must be validated third-party companies with proper business registration details.
The invoices from these suppliers must also feature formal business information, ensuring adherence to the scheme’s criteria.

Project Timeline & Execution

In terms of project timeline, approved applicants have three months from the receipt of the letter of offer to complete the specified work. If more time is required to complete the project, the Local Enterprise Office may grant an additional one-month extension upon request.

Additional Support & Resources

The TOV Scheme offers businesses additional support and resources, extending beyond the voucher. This includes free help and training through local enterprise offices to assist businesses in making informed decisions about trading online.

The scheme also offers a variety of informational sessions on topics such as website development, digital marketing, social media for business, and search engine optimisation.

Training Sessions & Seminars

The scheme’s training sessions and seminars cover essential topics such as:

Website development
Digital marketing
Social media for business
Search engine optimisation

All aimed at maximising the online trading activity and business online trading potential of businesses.

Additionally, the scheme facilitates internal digital skills development through training as a crucial part of executing an effective digital marketing plan, with a focus on digital marketing strategy implementing.

Accessing Further Assistance

Businesses can avail more assistance from state agencies, EU funded operational programs, and trade associations, extending beyond the TOV Scheme’s immediate purview. These provide specialised support that can augment state assistance, focusing on networking opportunities and sector-specific guidance, including scheme assistance.

Trading Online Voucher Scheme: Frequently Ased Questions

What is the Trading Online Voucher Scheme?

The Trading Online Voucher (TOV) is an initiative sponsored by the Local Enterprise Office as part of the Government’s National Digital Strategy, which encourages small businesses to enhance their online sales capabilities. This scheme is a response to the growing trend of online sales which are claiming a larger share of the market across various sectors. The grant aids businesses in improving their online sales platforms and accessing new markets.

The scheme offers financial assistance up to €2,500 or 90% of the investment, whichever is less, toward enhancing a business’s online presence. To qualify, businesses must contribute at least 10% of the investment. For instance, if an e-commerce development agency quotes €4,000 for a new website, the business would pay €1,500 while the Local Enterprise Office would contribute €2,500. For a smaller project costing €500, the business would pay €50 and the Local Enterprise Office €450.

Who can apply for the Trading Online Voucher Scheme?

Eligible applicants are small businesses within the Republic of Ireland that have been operational for a minimum of six months, have a workforce of no more than 10 employees, and an annual turnover not exceeding €2 million.

Why apply for the Trading Online Voucher Scheme?

With Irish consumers spending approximately €850,000 online every hour, and the e-commerce sector being valued at an impressive €2.8 billion with a 25% annual growth rate, an established online presence is essential. The rise in .ie domain registrations by 30% in Q2 of 2020 compared to the same period in 2019, as reported by the IE Domain Registry (IEDR), emphasises the urgency for businesses to establish a strong online presence. Without it, you risk losing market share to competitors.

Applying for the Trading Online Voucher Scheme is a strategic move to strengthen your online presence and increase online sales while capitalising on cost savings. As of May 2020, over 1,250 applications have been approved, with an average grant of €2,300, demonstrating the scheme’s role in supporting businesses to establish and expand their online footprint.

According to a survey by the Wicklow Local Enterprise Office, among 800 recipients of the Trading Online Voucher:

60% saw growth in international sales.
Average sales increased by more than 20%.
90% experienced a surge in customer inquiries.
75% reported that the new online sales were incremental and did not disrupt existing sales channels.
The demand increase led businesses to consider hiring an average of 1.4 additional employees.
Nearly 90% anticipated that online sales would comprise a larger portion of their revenue in the subsequent six months.

Trading Online Voucher Scheme: Terms & Conditions

What are the terms and conditions of the Trading Online Voucher Scheme?

The Trading Online Voucher Scheme comes with specific terms and conditions to be aware of. The most critical stipulation is that the maximum voucher value is €2,500 or 90% of the eligible expense (excluding VAT), whichever is lower. Approval for the TOV must be obtained before any expenses are incurred.

The key terms and conditions include:

A maximum voucher value of €2,500 or 90% of eligible expenditure (exclusive of VAT), whichever is the lesser.
Voucher approval is required before incurring any expense.
Internal labor costs are not considered eligible expenses.
Only third-party costs are eligible for consideration.
All third-party/supplier invoices must contain valid business details, such as tax and business registration information.

Who is eligible for the Trading Online Voucher Scheme?

Eligibility criteria for the Trading Online Voucher Scheme include:

A limited or non-existent online trading presence.
A workforce of less than 10 employees.
An annual turnover of less than €2 million.
A minimum trading history of 6 months.
Location within the catchment area of a participating Local Enterprise Office (LEO).

Who is ineligible for the Trading Online Voucher Scheme?

The scheme does not cover certain businesses and projects, such as:

Charities, commercial semi-state entities, trade associations, or company representative bodies.
Not-for-profit or social entrepreneurship endeavors operating in a commercial domain.
IT companies or digital agencies.
Conferences and seminars.
Projects conflicting with public policy.
Support duplication for projects eligible for other State Agencies or EU-funded programmes.
Companies with more than 10 employees.
Projects that would proceed without the scheme’s assistance (deadweight).
Importation and distribution-focused projects.

What can you utilise the Trading Online Voucher for?

Eligible uses of the Trading Online Voucher include a variety of digital and online services:

Consultation for IT, digital marketing, or crafting a digital strategy.
Creating a new e-commerce platform or enhancing an existing one.
Setting up online payment systems or reservation capabilities.
Acquiring internet-related software, such as online retail platform subscriptions.
Investing in online advertising, which can account for up to 30% of the voucher value and must be claimed in a single phase.
App development or creating webpages that function across multiple platforms.
Formulating a comprehensive digital marketing plan.
Execution of said digital marketing plan.
Training or skill-building to manage online sales activities effectively.

What is excluded from the Trading Online Voucher use?

The Trading Online Voucher cannot be used for the following:

Creation of a basic brochure-style website (unless you have a payment facility to accept card payments).
Services that are not related to internet trading or online activities.

What is the validity of the Trading Online Voucher

As per the Local Enterprise Office (LEO), the Trading Online Voucher Scheme does not have a set expiration date for applications. However, LEO retains the discretion to terminate the scheme at any time. To ensure your application is considered, it is advisable to apply promptly before the possibility of the scheme’s discontinuation.

How To Apply For The Trading Online Voucher Scheme

Embarking on the application journey for the Trading Online Voucher Scheme involves two key steps:

Participation in the Trading Online Voucher Scheme Information Session
Completion and submission of the Trading Online Voucher Scheme Application

Below, we delve into the specifics of each step.

Trading Online Voucher Scheme Information Session

Hosted by your Local Enterprise Office, these information sessions are designed to shed light on the scheme’s nuances and how to maximise the available funding. Each session typically spans 2-3 hours and may differ from one region to another. In these sessions, expect to gain insights into website creation, expanding your customer base through digital marketing, leveraging social media, and mastering search engine optimisation (SEO), along with other valuable topics.

An independent expert, not affiliated with the LEO, usually conducts the session. This ensures an unbiased presentation, equipping you with the essential knowledge to make strategic investments in your business’s digital footprint.

Registration For The TOV Information Session

To secure a spot in the webinar, visit your Local Enterprise Office’s website. Below is a list with direct links to each LEO. Once you’re on the site of your LEO, you can register for the session in three simple steps:

Navigate to ‘Training and Events’
Select the desired webinar (Trading Online Voucher Webinar)
Click on ‘Book Now’

Following the online registration, you’ll receive an email with all the details needed to join the webinar.

Where To Sign Up For The TOV Session

Simply click on your business’s location from the list below, and you’ll be directed to the corresponding Local Enterprise Office website. There, you’ll find the option to register for the information session.

Trading Online Voucher Scheme: Application Submission

Acquiring The Application Form

Post-webinar, if you meet the eligibility criteria, the Trading Online Voucher Application Form will be sent directly to your email. Alternatively, you can access and download the form through this link.

Project Component Selection

On the application form, you’ll need to indicate which aspects of your online venture you’re seeking to enhance. Below is the selection list provided by the Local Enterprise Office (LEO):

IT consultancy services
Management of the project
Creation of a brand new e-commerce site
Enhancements to an existing e-commerce platform
Systems for content management
Development of applications
Strategies for digital marketing
Online advertising (up to 30% of the voucher’s value)
Educational training services
Web copywriting
Optimisation for search engines (SEO)
Analysis of web traffic and user behavior

Submitting Supplementary Documents

Your application must be accompanied by the following documents in addition to the application form itself:

Three distinct supplier quotes
Proof of trading history, should gathering three separate quotes prove excessively challenging due to the multifaceted nature of your project, the requirement may be relaxed. In such instances, the application’s evaluation will hinge on the quotes provided. Prior consultation with your Local Enterprise Office is advised should this situation arise.

Requesting An Additional Voucher

Should there be a necessity to further enhance your online operations, it is possible to request a second Trading Online Voucher. This is contingent on the stipulation that the enhancements are deemed necessary.

Trading Online Voucher Scheme: Approval Process

Evaluation Committee Recommendations

Your application will undergo a thorough assessment by an in-house committee at your Local Enterprise Office (LEO). They will provide a recommendation for approval based on these key considerations:

Scheme Eligibility: Does your enterprise align with the TOV’s eligibility prerequisites?
Potential to Add Value: What degree of enhancement to your online presence will result in added value for your clientele and your business?
Potential for Exports: Are your goods exportable, and to what degree will the TOV bolster your export capabilities?
Potential to Create Jobs: Does the prospect of obtaining the TOV increase the likelihood of job creation within your business?
Financial Viability: How will the TOV impact the current and future financial health of your business?

Approval Timeline

The LEO typically processes applications swiftly. Expect to hear back with a decision within 1 to 4 weeks of your application submission. Upon approval, a letter of offer will be issued to you, which you can then present to your chosen supplier.

Voucher Payment Receipt

To receive your TOV payment, you must provide the following to your LEO:

A joint signed declaration by you and the selected supplier
The Company Registration Office (CRO) Number of your business
A valid Tax Clearance Certificate
The supplier’s invoice complete with CRO, Tax Registration, or VAT information
A bank statement showing the payment transaction for the invoice
A completion statement from the supplier affirming the project is finished

Voucher Utilisation Period

From the date you receive your letter of offer, a three-month period is allocated for you to carry out the proposed work. Should you need more time, we advise discussing the possibility of a one-month extension with your LEO.

Case Studies: Success With The Trading Online Voucher Scheme

The Local Enterprise Office’s Trading Online Voucher Scheme has proven to be an instrumental program in propelling Irish small enterprises towards greater online visibility and market expansion. In Wicklow alone, 800 businesses that benefited from the scheme experienced a surge in international market penetration, boasting an average increase in sales of 21%.

Explore how Huku Balance, with the aid of a Trading Online Voucher Grant from the Local Enterprise Office in Donegal, managed to catapult their website sales onto the international stage.

Discover the journey of Bernadine Burke at Maysonbrook in Galway, who successfully capitalised on the support provided by the Trading Online Voucher Scheme through the Local Enterprise Office in Galway.

Summary

To sum up, the Trading Online Voucher (TOV) Scheme is a significant initiative aimed at helping small businesses improve their online presence and e-commerce capabilities. From understanding the TOV Scheme and its benefits to navigating the application process, managing the financial aspects, executing the project, and accessing further assistance, this blog post provides a comprehensive guide to harness the power of the scheme.

After all, in a world increasingly dominated by digital commerce, the ability to trade online effectively is a game-changer for businesses.

Trading Online Voucher TOV Scheme: How To Apply & FAQ’s