obtaining resources for product development

Obtaining Resources for Product Development

04/21/23 Presentation by M-TEAMS to GLISC

Objectives of This Presentation

• Identify the 3 resources needed• Identify key places to look


Three Resources Needed

• Technological

• Managerial

• $$$$$$


How the 3 Resources Relate


Drivers


What Works Best

• Financial People Look for Managerial People

• Managerial People Look for Technological People

• Technological People Develop the Products


What Usually Happens

Technological People Have:

• An idea, or

• A partially developed product, or

• A developed product that needs to be commercialized


Technologically Driven Development

• Tekkies look for money

• Financial people won’t provide funds without Pointy Haired Bosses (PHBs)

• Tekkies think they have PHB capability


Financially Driven Development

• Financial people hire PHBs

• PHBs hire Tekkies

• Tekkies do development


Managerial Driven Development

• PHBs attract Investors and Tekkies

• Rare


At Any Given Time You Might Need:

• Technology

• Management

• Financing


Obtaining Technological Resources

• You might be a Tekkie but need additional expertise

• You might be a PHB needing to beef up your team

• You might be a Financier looking for a new technology


Finding Tekkies

Tekkies generally fall into 3 categories:

• Engineers or scientists with degrees

• Technicians or technologists with diplomas

• Skilled trades with diplomas and/or certificates


Where to Find Tekkies

• Engineers/scientists graduate from universities e.g. University of Windsor

• Technicians/technologists graduate from community colleges e.g. St. Clair College

• Skilled trades are often apprenticed, sometimes with college courses included. They can be the hardest to find.


Places to Look for Tekkies

• Workopolis http://www.workopolis.com • Service Canada

http://www.jobbank.gc.ca/intro-eng.aspx • Monster http://www.monster.ca/ • Ontario Society of Professional Engineers

http://www.ospe.on.ca/ • Canadian Technical Employment Network

http://www.cten.ca/ • Colleges and Universities

http://www.workopolis.com/


Caveat Tekkie

• Programs are not generic. E.g. hiring a mechanical engineer when you need an electrical engineer is a recipe for failure

• Don’t assume that an engineer can do what a technologist can or that a technologist can do what a skilled trades person can.


Contract Tekkie

Your firm can get Tekkie help from:

• Universities and Colleges

• Consulting Engineering Firms

• Consulting Engineers of Ontario http://www.ceo.on.ca/home.asp

• Association of Consulting Engineering Companies Canada http://www.acec.ca/


Where to Find PHBs

• Universities graduate B. Comms and MBAs- but don’t hold that against the Us!

• Colleges will provide diplomas

• PHBs will be on many of the same websites as tekkies


Contract PHBs

• Universities and Colleges with Business programs

• Canadian Association of Management Consultants http://www.cmc-canada.ca/


Caveat MBA

• Students graduate with a lot of knowledge. However, they need to be mentored.


Where to Find Financiers

• The piggy bank

• Ma and Pa

• Commercial Lenders

• BDC

• Angel Investors

• Venture Capitalists

• Governments


The Piggy Bank

• If you aren’t prepared to invest your money then don’t expect anybody else to

• However, don’t spend all your savings and then go looking for money

• Use your savings to leverage external investment


Ma and Pa

• The same rule applies to family investments as applies to the piggy bank

• Don’t get tapped out and then look for money

• Your bargaining position will be weak.


Commercial Lenders

• Banks, credit unions, caisse populaires

• Will require collateral. This is where the piggy bank and Ma and Pa’s kettle will come in handy


BDC

• Just because it’s a crown corporation doesn’t mean that they aren’t out to make money

• Usually the BDC wants to see comparable investment from private sources

• http://www.bdc.ca/EN/Pages/home.aspx


Angel Investors

• Angel Investors are generally successful business people who have made significant money in previous ventures

• They will invest in your business and generally want some level of control of the operations

• http://glangels.weebly.com/• http://www.swoangel.com/


Venture Capitalists

• Generally VCs look for large opportunities

• They will want to see a solid business plan and a good management team in place

• They care little about the actual technology itself

• Big $$$$ usually


Government Funding

The Rules


Before You Apply

1. Incorporate your company!2. Know what you want to do- Business

Plan and/or Market Plan essential3. Get an unbiased assessment of your

product (market study, focus group…)4. Be realistic in what you need. Your cash

requirements don’t end when the product is developed.


Where to Look for Help

• Local government agencies:• WE-tech Alliance• WindsorEssex Economic Development

Corporation• Ontario Ministry of Economic Development

and Trade• NRC Industrial Research Assistance

Program• MP/MPP


Online

• Canada Business Network http://www.canadabusiness.ca/eng/

• MaRS Portal http://www.marsdd.com/entrepreneurs-toolkit/

• FundVantage https://www.fundvantage.ca/ Plug!


General Recommendations I

1. SR&ED tax credits- Find out if you are eligible for work already performed or will be eligible going forward: Entitlement!

2. Contact WEtech, IRAP, the Development Commission, Small Business Centre, and MEDT before pursuing programs.

3. Don’t do it alone the first time. Plug!


General Recommendations II

4. Prepare for a long process. Most government programs either have deadlines, have tight funds, or required detailed applications.

5. Give up or don’t give up. It depends on the program. Generally, if the funding bodies say “No” it will take a lot of work to turn that into a “Yes”.


General Recommendations III

6. Answer the questions they ask! A major problem for civil servants is reading stuff that is irrelevant.

7. Follow up but don’t pester. You can’t always count on emails to go through.


Conclusion

• We have discussed the 3 resources that you need to develop a product

• We have identified starting points to look for those resources

• Next?


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Thanks

04/21/2304/21/23 Presentation by M-TEAMS to GLISCPresentation by M-TEAMS to GLISC

Who To Call to Help Get Those Who To Call to Help Get Those ResourcesResources

Bill MacArthur at 519-419-0070 or Bill MacArthur at 519-419-0070 or 519-567-0918519-567-0918

Email at [email protected] Email at [email protected]

M-TEAMS is the:M-TEAMS is the:

Small Business R&D SpecialistSmall Business R&D Specialist

obtaining resources for product development

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