By IAN ROSS
The term ‘technology incubator’ conjures an image of little furry IT chicks under warm lights, priming themselves to become the next Mike Lazaridis.
That’s the plan being hatched by the Sault Ste. Marie Innovation Centre who’ve been handed the task of developing a strategy for the community’s growing IT and knowledge-based sector.
Like many business incubators, it acts as a consulting firm with cheap rent, technical support and guidance is giving start-up businesses a better chance for success beyond the three to five year window when many bright-eyed entrepreneurs wash out.
The facility is located in the ICT building, which opened on the Algoma University College campus in May 2004,
If Brad Madigan has his way, he’d never leave.
All the mundane start-up costs are of no concern to the founder of Dizzytree Inc., his web design and content management firm.
“It’s great for the first few months not having to spend $600 on printer, when it’s right here,” says Madigan, who moved into his office digs last November after leaving Lucidia Studios to venture out on his own.
For his $350 a month rent, he gets a turn-key office with phone, fax and Internet hookup; access to a fully-wired boardroom, photocopiers, binding machines, even his office supplies.
There’s lawyers and accountants available, a business mentor-in-residence, and a public relations staffer available to proof read his marketing material or prepare a press release.
“I saved money by being here,” says Madigan. “It keeps the cash flow going. I haven’t had to go borrow.”
There’s also a chance to network with his neighbours. Madigan’s venture is one of three technology companies at the incubator, including Miramar Design Studio and Wilderness GIS.
Plus, there’s workshops and seminars on intellectual property rights or on how to respond to an RFP.
“What other people have to pay for, our cost is covered as a client.”
It’s allowed him to concentrate on his web application work, most notably his pay-as-you-go online software, Zavanda, a business management tool to track sales leads.
Aside from being “swamped” with local work, he’s also working with a client in Denmark. “Right now I’m in over my head from work and I can’t find anybody to hire.” He stopped responding to publicly-tendered RFP’s because he’s booked up until the New Year.
While his incubator life span lasts only three years, “I’m gonna stay here as long as they keep me.”
For Innovation Centre executive director Tom Vair, ideally he would like to build out beyond their current 4,000-square-foot space with further expansion.
The incubator is a member of the National Business Incubator Association and the Canadian Association of Business Incubators, and draws from their best practices.
Only entrepreneurs with feasible projects and growth potential are admitted. No hobby businesses allowed, no adult or online poker websites.
They provide not only the physical space, but management coaching, business planning, technical support, business advice and financing options. The incubation process lasts about three years.
Rents vary from $195 per month for a cubicle — “not a big seller,” says Vair — up to $600 for their largest office.
The rent increases over three years to market rate. “But we’re flexible if they’re not growing at the rate they would like.”
With more clients in the pipeline,Vair wants to replace the cubicles with more offices and fill out their physical space with seven tenants by year’s end.
By year’s end, the Innovation Centre expects to create 30 jobs and receive $500,000 in government leverage money, mostly for a health informatics project at the Group Health Centre where their GIS department is located.
They also have high hopes to capitalize on any possible spinoffs on Algoma University College’s masters in computer gaming degree.
Ideally, Vair would like to build upon his academic, government and business connections to establish a larger facility similar to Toronto’s MaRS Discovery District where start-up companies and more established knowledge-based companies to produce leading-edge research for the market.
The Innovation Centre has partnerships with many kinds of investors with access to government seed capital and angel networks for incubated companies.
Vair says after working with numerous Internet start-ups in Ottawa’s IT sector for eight years, he excited to return home and share his accumulated skills with the community. He’s also been asked to join the Premier’s Ontario Research and Innovation Council.
“I did get excited about the job because there is great potential here,” says Vair. “It’s been a great experience networking to get a feel for what’s going on here and exciting to see the opportunities here in Sault Ste. Marie.”
