The modern business world is full of start-ups and entrepreneurs eager to make their business succeed. To get ahead and greatly enhance your business’s chances of success, an incubator could prove invaluable. With the knowledge and know-how to get businesses off the ground, incubators have helped many highly prolific businesses grow and breach the market is saturated and competitive industries.
What is a Business Incubator?
Business incubators provide support and expertise to young and developing businesses. They provide a backbone and shoulder to lean on for businesses by and focusing on developing the profitability and longevity of young businesses. By providing valuable support and resources that can be difficult for start-ups to find and fund on their own, incubators are able to provide a necessary framework to help businesses avoid mistakes and help to speed up their growth.
There are many varied types of incubators, each catering to different needs and industries. Different incubators offer different services, incubators such as Yuncture provide free training to entrepreneurs. Incubator programs can even feature business accelerator programs designed to speed up the growth of your business.
How will Incubation Influence my Businesses Success?
According to a study conducted by the National Business Incubation Association, companies that participated in a business incubator had an 87% success rate. That success rate is actually nearly double the 44% success rate of business that didn’t incubate.
Business incubators can help your business succeed by providing mentorship and resources that you might otherwise struggle with or be completely unable to find on your own. Finding quality mentorship is very difficult, as the most experienced and knowledgeable individuals in your field are commonly your competitors. Incubators can provide people with these high levels of expertise to help guide you.
Another great benefit to incubators is its ability to help secure funding and investment. Investors will be more likely to invest in a business when they know that a well-known incubator with very high success rates is backing the business. Some incubators will help negotiate high profile investors for you that might otherwise not be interested.
Each incubator will generally offer their own set of benefits to startups. Some will help with networking or operational support. Some even focus on providing workspaces and training for employees. Many provide for intangibles such as mentorship and the boosting of entrepreneurial culture in your business. There are a few who offer seed funding, directly influencing the growth and investment potential of your business.
What should I look for in an Incubator?
Look for an incubator that suits the individual needs of your business. Take note of the weaknesses of your business; try to find an incubator who can provide support in those areas. Look for the short-term support you find most necessary as well as what will benefit your long-term goals. Take note of the track record of incubators you are interested in. Look for notable successes in the incubator’s history as well as the rate of success in their businesses. A very important factor when choosing an incubator is connections to future capital. Whether through structured contacts made through the program or networking that arises as an indirect.
Your industry also determines what it is that you need from an incubator. Some incubators specialize in specific industries. Take note of the special needs and requirements of your industry when choosing an incubator. Look for weaknesses that your business suffers from regards to the industry and look for incubators that can strengthen those points.