By: Leah Jones
The fast-paced technology sector is highly competitive, but with the help of incubators like the RIC Centre, this sector can prove lucrative to entrepreneurs eager to take on the challenge.
Profit Magazine (with ITAC and the CATA Alliance) released the results of a survey examining small to mid-sized Canadian businesses in the technology sector, providing a vertical perspective of the Canadian technology community. Here are 4 best practice tips revealed by this year’s report:
1. Expect to Require External Capital
In the highly competitive technology sector, finances remain a common hurdle among startups, but one that can be overcome with access to proper resources. Though 64% of survey-takers said their company would require external capital within the next twelve months, 80% of those were confident in their ability to secure these funds.
2. Take Advantage of Tax Credits
48% of surveyed entrepreneurs listed R&D Tax Credits as the best government tool for those in the technology sector. Others cited Venture Capital Funds such as those acquired with Venture Start.
3. Don’t Overlook Crowdfunding
The use of platforms such as Kickstarter and Indiegogo to raise extra capital has increased exponentially in the United States, and is catching on with Canadian start-ups. Though offering equity in return for investments secured through crowdfunding is currently illegal in Canada, 66% of entrepreneurs expressed interest in allowing equity-based crowdfunding.
4. Consider Open-Book Management
Over half of surveyed entrepreneurs list “open-book management” as their most effective HR practice. This allows employees to view the company’s financial accounts, instilling a sense of individual responsibility, and fostering a greater understanding of your business’ challenges and goals.
To learn more about how to enhance your technology business, contact the RIC Centre for access to industry-specific mentors and RIC’s Virtual ICT Advisory Board, and attend Silicon Peel Meetup #3 to join Peel’s community of hi-tech entrepreneurs.
Leah is completing her final year of the Visual Culture and Communications specialist program at the University of Toronto Mississauga and Sheridan College. She is interning at the RIC centre, bringing her experience in digital, print and website design. Leah is eager to begin a career in corporate communications after her graduation in June.
The RIC blog is designed as a showcase for entrepreneurs and innovation. Our guest bloggers provide a wealth of information based on their personal & professional experiences. Visit RIC Centre for more information on how RIC can accelerate your ideas to market.