Need help for your startup to get-off the ground? Worried about your small business expansion? Business incubator is the aide that your business just needs. Let’s explore what business incubator exactly is and how it can rally round your business to develop.
How did this concept come into picture?
In 1959, Joseph Mancuso came up with the Batavia Industrial Center in Batavia, New York, warehouse. The official plan was first pioneered in the USA and after few years, the concept was spread out in UK and Europe. Not only developed countries, even developing countries are carrying out the incubation activity.
What is business incubator?
Entrepreneurs have deep-rooted image of being self-reliant, business incubator helps to sustain this image of the business owners.
- Business incubator is an organization that acts as lifeline for small businesses and startups to survive and grow during their initial stages. This association provides secured and affordable environment for the entrepreneurs to boost their venture
- Business incubator generally offers physical space, consulting, management services, financial and technical support to the flourishing businesses
- Business owners can also get bailed out with additional services like accounting, marketing and networking, provided by few incubators
- The main aim of this organization is to elevate your business and take it to the next level
How does a business incubator work?
Right from its inception in 1959 to the present day, business incubator works on the same lines.
- They gather multiple businesses under one roof, provide them guidance, temporary workspace and financial support. However, one addition to the modern day incubator is that it also operates on virtual space
- Business incubator serves to an assortment of industries. You need to find incubation that perfectly suits your business
- The best source to find your favorable incubator is through National Business Incubation Association while local and state economic development departments are also preferred mediums for finding business incubators
The widespread benefits of business incubator:
Business incubator has been part of many startup success stories. The long list of benefits offered by incubator can indeed be a game-changer for your business.
Affordable cost for workspace: The most beneficial aspect about business incubator is, it provides affordable workspace for the newbies. Entrepreneurs need not have to worry about costly rentals or building costs.
Shared operating cost: Entrepreneurs can be benefited with additional savings by sharing the operational cost with their co-tenants. Business tenants share their overhead costs like expenses related to offices equipments, utilities, conference room etc.
Strong networking partners: One of the plus points of business incubator is that it offers strong networking, right from the early stage of your business. Many media and tech partners are ready to help the startups and small businesses who have assistance of business incubators.
Great access to finance: Shortage of finance can be biggest obstacle for the startups. Reputed incubators have good union with venture capital and banks thus tenants can get availed with better financial support.
How to get entry?
Incubators offer unparalleled connections with seasoned entrepreneurs, consultants, financial institutions. The way of access generally depends upon the type of industry.
- Professional business incubators follow selection process which needs capital assurance from entrepreneur
- First you need to submit your awesome business plan to the incubator for reviewing
- The screening committee would assess your business plan and decide whether it fits the entrance criteria or not
- Once the screening process is completed and your business gets selected, the entrepreneurs will be charged with reasonable monthly rentals for office space, work equipments and particular services
- Additional cost will be charged, in case of customized work space
Incubator is just like business partner, thus look for an organization that is trustworthy and reliable. It’s worth grabbing the opportunity to connect with business incubator as it will help to grow, improve and promote your small business on large scale.