Successful entrepreneurs have the desire and capacity to innovate. They embrace technology and they think “outside the box” for new and unusual ways to grow their businesses and bring new products to market. In Florida, many of the tools, processes and programs that innovative entrepreneurs use to grow their businesses are readily available to you. Read on to learn more.

 

Technology

Make It Work for You

If you want to run a successful business these days, you can’t escape technology. But you can avoid becoming a slave to it. Having the latest digital devices and the fastest Wi-Fi connections may make you feel as though your business is on the cutting edge, but they won’t save it from going down the tubes if you neglect your bottom line.

While technology is an essential tool, it is not a business strategy. Adopt advanced technologies for what they can do to help your firm connect with customers/clients more effectively, but don’t let them take the place of your intuition and firsthand experience.

Tools You Can Use

As a business owner, you don’t have to be a “techie”; leave that to your IT consultant. You should, however, be able to understand and use advanced computer programs to manage day-to-day operations. We’ve listed a few to consider:

Accounting Software Even if you have an in-house bookkeeper or accountant on retainer, it’s important that you can readily access your business records. A computerized business bookkeeping system such as QuickBooks or Wave allows you to design and maintain a budget, see your profits and losses at a glance and readily monitor cash flow.

Planning Software You can’t do business without a calendar. Many online planning systems are available to help you keep track of important dates and events. Find a system that meets your particular needs, then stick with it.

Time Tracking Software A time tracking program can help you increase efficiency and profits by determining which tasks are cost effective and eliminating or outsourcing those that are not.

Email Management If you are currently using several email accounts to manage various aspects of your company, consider email management software to streamline your individual accounts into one.

Project Management Software Web-based project management tools like Basecamp, Smartsheet, Zoho and others can help you and your entire team — employees and independent contractors alike — stay on top of projects and meet deadlines.

Mobile Internet Access If you haven’t already done so, link your mobile device to the Internet so that you are readily accessible and can respond to emails in a timely manner when you are away from your desk.

Business Incubators

Getting Off to a Good Start

The International Business Innovation Association defines business incubators as entities that nurture the development of entrepreneurial companies, helping them to survive and grow during the startup period when new businesses are most vulnerable. Incubators may offer office or manufacturing space at below-market rates and staffs to provide mentoring and expertise in developing business and marketing plans. Some incubators offer assistance with funding, but that is the exception rather than the rule.

Incubators are generally attached to universities, but they also may be sponsored by economic development organizations or government entities; only about 4% of incubators in North America are for-profit entities. Generally speaking, companies spend an average of two years in a business incubator, and to help reduce everyone’s overhead, they share telephone, secretarial services and production equipment expenses with the other startup companies.

The process for joining an incubator varies. Most require a formal application and an appearance before a selection committee.

Not all business incubators are alike, so try to find one that best matches your firm’s special requirements. You’ll find a list of Florida-based incubators with websites for additional information here. To search more widely, visit the International Business Innovation Association’s website at www.inbia.org.

Accelerators and More

More Options for Startups

Depending on your needs and the nature of your business, you also may want to consider the following:

Business Accelerators share the same overall goal as incubators — improving a fledgling business’s odds of success — but with a different method and a shorter time frame. The focus is on small teams, a single project and a deadline that’s usually within three months. Most accelerators end their programs with a “demo day” in which participants present to potential investors; a seed investment is usually made in exchange for equity.

Coworking Space is an office or other type of working environment that is shared by people who are self-employed or working for different employers with the goal of creating an environment to foster connections and creativity. Participants pay a monthly rent for shared space and equipment.

Research Parks are property-based ventures consisting of R&D facilities for technology- and science-based companies. Sometimes called science or technology parks, these larger-scale projects generally do not offer comprehensive programs of business assistance; their focus tends to be more toward economic development and technology transfer.

 

Is a business incubator right for you?

Securing a place for your company in a business incubator doesn’t guarantee financial success. Here, instead, is what you can realistically expect from your incubation experience:

• Expert Mentoring and Training Successful incubators all share in common these traits: strong leadership and staff with solid business and investment credentials. When you go “shopping” for an incubator, look for one that is more than simply a place to park your laptop.
• Peer Support At startup incubators, you’ll be working alongside peers who can provide both emotional support and expertise in areas you may not be so comfortable with.
• Ample Resources Ready access to affordable office and meeting space, administrative services and advanced technology is a huge plus for struggling entrepreneurs. So the incubator you choose should be about more than vacant space and cheap rent.
• Learn by Doing There’s no teacher quite like experience. In an incubator, you can test ideas in the real world within an atmosphere of structure and discipline while expending a minimum of time and money.
• Funding and Connections Affiliating your firm with an incubator doesn’t guarantee that you will receive any funding. However, like an MBA from the “right” school, it could open some doors, providing connections to influential people and easier access to venture capital.

Technology Transfer

Taking Technology to Market

Researchers at universities, hospitals, nonprofit organizations and for-profit companies continually generate groundbreaking technologies that have the potential to improve the way we live, work and play. The organizations or individuals that invent these technologies are free to “commercialize” them by creating their own products that they sell directly to consumers.

Universities, which typically do not have the resources or expertise to produce and market products from their technologies, may hand off their intellectual property rights to the for-profit sector for commercialization in a process known as “technology transfer.” A government mandate requires them to do so if the technology in question was developed using federal funds.

The industrial and business sectors have long practiced technology transfer, but universities are relatively new to this process. Prior to 1980, any invention discovered or created with federal funds belonged solely to the U.S. government. Passage of the Bayh-Dole Act gave nonprofit institutions and small businesses the right to develop and profit from inventions sponsored by federal funds.

Technology transfer is today big business on university campuses, and Florida’s public universities provide some of its most fertile environments. In fact, three of them — University of South Florida, University of Florida and University of Central Florida — were among the world’s top 30 academic patent producers in 2014.

 

Licensing

Profiting from Inventions

Inventors who want to make money from their inventions have two choices: either manufacture and market the invention themselves or license it (sell the right to commercially develop or use the invention to someone else). Your decision depends on the invention itself and your personality. Some innovations, because of their complexity or exorbitant production costs, automatically lend themselves better to licensing. However, if your invention is relatively straightforward and you have the motivation to produce and sell it yourself, then becoming an entrepreneur makes sense. There are pros and cons on either side.

Licensing your Invention simply means that you have agreed to let someone else commercially use or develop your invention for a period of time; in return, you receive either a one-time payment or royalties. The advantage of licensing is that someone other than you assumes all the business risks, from manufacturing to marketing to preventing patent infringement. The disadvantage is that you lose control and your odds of overwhelming financial success are more limited; royalties typically range from 2% to 10% of net revenues.

Becoming an Inventor-Entrepreneur allows you to completely control the production and marketing of your invention. The financial rewards are potentially much greater, but so are the risks. If you thrive on challenges, uncertainty and multi-tasking, then go for it. Just be prepared for many sleepless nights and intrusions into your personal life.

In either case you will need money early on to create a prototype. Beyond that, your personal investment is dependent on the option you choose and may include budget allocations for soliciting/negotiating with potential licensees, creating tools or molds, marketing your invention, mass-producing your product, investigating distribution channels and advertising.