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A new year creates space to reset priorities — and for innovation-led businesses, 2026 is shaping up to be a year where preparation matters as much as ambition. Canadian founders and finance leaders are navigating a landscape defined by economic uncertainty, fast-moving technology, evolving government support and increasingly complex global trade conditions.
The good news is that Canadian businesses are feeling more optimistic about 2026 and are pivoting quickly to manage the challenges. Taking time early in the year to strengthen the foundations of your innovative business will ensure you’re better placed to manage risk, unlock opportunity and maintain momentum. Below are seven practical resolutions to help Canadian innovators plan with confidence and position themselves for success in 2026.
1. Reassess your strategy with fresh eyes
Markets move quickly, and assumptions that held true even 12–18 months ago may no longer apply. Digital transformation, customer expectations and competitive dynamics continue to shift. Early in the year, it’s worth stepping back and asking:
- are your core assumptions about customers, pricing or delivery still valid?
- where could automation or AI materially improve productivity or speed?
- which partnerships, pilots or programs could help you scale more efficiently?
- does your current funding mix align with your growth stage and risk profile?
This isn’t about reinventing your business — it’s about adjusting direction early, before small misalignments become costly.
2. Treat cash flow as a strategic advantage
Cash flow management remains one of the most important levers for innovation-led businesses. Although interest rates are predicted to remain steady for 2026 [1] , continuing uncertainty around trade agreements could impact inflation. For growing businesses, that uncertainty can affect borrowing costs, investment decisions and appetite for risk.
Founders and CFOs should model multiple cash-flow scenarios — not just best-case — and map periods where costs spike or revenue lags. This kind of planning supports more informed decisions around hiring, capital expenditure and timing of growth initiatives.
For businesses investing in R&D, it also means factoring government incentives such as SR&ED into financial planning, rather than treating them as an afterthought. Clearer visibility over expected refunds and timing can materially change how projects are sequenced and funded. Plus, you can gain early access to your expected refund by building SR&ED financing into your budget, providing certainty and accelerating progress. Building regular Easly Advances into your R&D budget can stretch your R&D investment by up to 74%.
3. Strengthen systems and R&D readiness
Strong systems and documentation rarely feel urgent — until they are. For Canadian businesses planning to claim SR&ED tax credits, document your research processes, challenges and costs from the start. Incomplete or retrospective documentation is a common reason for claim adjustments or delays, so follow Canada Revenue Agency (CRA) guidelines to ensure you can document your claim. [2] You’re probably already collecting the data: elements such as timesheets, research records, software prototypes, meeting minutes and developer notebooks are all vital to prove your SR&ED claim. However, setting up a system to capture and organize these elements will pay off in the long run and make submitting your SR&ED application much easier. Do this even if you’re not completely sure your work will be SR&ED eligible and ensure your team understands the importance of maintaining good records and follows the processes you have set up.
Beyond compliance, good systems support better decision-making. Clear records of experiments, technical challenges, costs and milestones help teams plan work more effectively, and understand which projects are delivering the most value.
4. Factor in grants and public support early
Canada offers a wide range of grants, loans and innovation programs at the federal and provincial level, but many businesses only look for them once cash pressure hits.
Programs delivered through Innovation, Science and Economic Development Canada (ISED), regional development agencies, and sector-specific bodies can support early research, scale-up activity and market entry. Tools like the Innovation Canada Business Benefits Finder make it easier to identify relevant opportunities.
When used strategically, grants and public funding can extend runway, reduce pressure on working capital and support capability building ahead of commercialization. They’re most effective when planned for early and built into a broader capital strategy, so do your research now.
5. Prepare for AI — beyond experimentation
AI adoption in Canada is accelerating and is being used by many small businesses to buffer against rising costs from tariff impact. A Zoho report shows 23% of businesses have already implemented AI solutions to reduce tariff impact, while 41.9% are assessing their options. [3] Worldwide, AI is predicted to become both the foundation and a ubiquitous component of every tech startup.[4] Verena Kuhn, Head of Innovator Communities (Technology Pioneers, Global Innovators & Unicorns) at the World Economic Forum, says, “We’re witnessing an AI multiplier effect across the global startup economy, with accelerated R&D cycles and significantly lower capital requirements to build world-class ventures.”
The challenge for 2026 is using AI well. Identify specific use cases (rather than broad experimentation), put governance and data safeguards in place, and invest in training, not just tools. AI delivers the greatest value when paired with organizational change and workforce capability, not when deployed in isolation.[5]
6. Account for tariffs and trade uncertainty
Tariffs and trade policy continue to be a material risk for Canadian businesses, particularly those operating across the Canada–US border or within global supply chains. Ongoing US tariff measures and trade tensions continue to affect input costs, supplier decisions and pricing strategies, although Canadian small businesses report feeling optimistic about the outlook for 2026. [6]
Amid historic lows in trade confidence, Export Development Canada (EDC) reports Canadian exporters are expecting US demand to continue to weaken. Strategies to counter the challenges include lowering profit margins, increasing domestic sales, diversifying into new export markets and sourcing locally. [7]
Businesses exposed to international markets should assess:
- supply-chain resilience and alternative sourcing
- pricing sensitivity to tariffs or border delays
- whether reshoring or near-shoring makes strategic sense.
Planning for trade risk early can prevent disruption later — especially for R&D-driven businesses moving toward manufacturing or scale.
7. Build a capital stack that works together
Funding sources shouldn’t compete — they should complement each other. Many Canadian innovators now use a mix of equity, grants and public funding, and debt. The need for funding is rising amid tariff uncertainty. Talk to us about providing early access to your SR&ED refunds to enable better cash flow management and sustained business growth.
This approach helps preserve ownership while maintaining momentum. The right capital stack creates flexibility — allowing you to invest, adapt and grow without relying on a single source of funding.
Looking ahead
Setting resolutions is easy. Building systems, plans and habits that support them takes intent. For innovation-led businesses, the early months of the year offer a valuable window to put foundations in place before pressure builds. Talk to us about how you could use non-dilutive Easly Advances in 2026 to provide funding certainty and help drive your innovation further, on your own terms. Innovation is a long game — but thoughtful planning now can help turn ambition into progress throughout 2026.
[1] Cousins, B. (Dec 15, 2025). Bank of Canada Seen Holding Interest Rate [online]. Financial Post. Available at: https://financialpost.com/news/economy/bank-of-canada-seen-holding-interest-rate-2026-inflation-cools
[2] Government of Canada (2025). Scientific Research and Experimental Development (SR&ED) tax incentives. Government of Canada. Available at: https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program.html
[3] Randall, S. (Dec 8, 2025). “Canadian SMEs push forward as tariffs bite, Zoho report shows strong optimism” [online]. Wealth Professional. Available at: https://www.wealthprofessional.ca/news/industry-news/canadian-smes-push-forward-as-tariffs-bite-zoho-report-shows-strong-optimism/391081
[4] Startup Genome (2025). State of the Global Startup Economy [online]. Startup Genome. Available at: https://startupgenome.com/report/gser2025/state-of-the-global-startup-economy
[5] OECD.AI (2025). OECD programme on AI in Work, Innovation, Productivity and Skills [online]. OECD.AI. Available at: https://oecd.ai/en/work-innovation-productivity-skills
[6] Randall, S. (Dec 8, 2025). “Canadian SMEs push forward as tariffs bite, Zoho report shows strong optimism” [online]. Wealth Professional. Available at: https://www.wealthprofessional.ca/news/industry-news/canadian-smes-push-forward-as-tariffs-bite-zoho-report-shows-strong-optimism/391081
[7] Export Development Canada Media (2026). “EDC survey: Trade uncertainty dampening the outlook of Canadian exporters” [online]. Export Development Canada. Available at: https://www.edc.ca/en/about-us/news/edc-tci-summer-2025.html
