A business incubator is basically an ecosystem that provides assistance to start-ups and new businesses for insulating them from market forces and building in a closed environment amid experienced mentors. Incubators do this by extending support in a range of areas including management training, office space, capital, mentorship, and networking connections.
What Do Business Incubators Generally Provide?
Here are a few things that incubators typically offer to early-stage start-ups:
Office Space – Some incubators offer workspace either for free or at reasonable rates to start-ups in their portfolio that can help entrepreneurs save cost when bootstrapping their ventures.
Specialized Equipment – Some tech or hardware-based incubators might also invest in specialized equipment, like modelling software, 3D printers, prototyping equipment, or software development labs which are beneficial for scaling companies in their infancy.
Experienced Mentors – It’s important for start-ups to limit critical mistakes while scaling. Most incubators offer an experienced pool of savvy industry executives to help the founding teams of start-ups stay focused and avoid mistakes.
Software Discounts – From accounting software to project management tools, incubators typically offer software or tools through partnerships, that help start-ups implement technology integrations to improve efficiency and save cost.
Community – Working with like-minded entrepreneurs, using connections for getting in touch with prospective customers, and learning new things from others in one’s cohort are invaluable parts of incubator life.
Networking – Incubators also provide networking opportunities with industry leaders or investors to boost the exposure of the founders.
Tips for Leveraging Business Incubators
Undoubtedly, incubators offer an invaluable support system for companies in their nascent stages. It is essential that entrepreneurs make the most of their time in an incubation program to truly leverage this support. Here are some tips:
1. Having a Real Business Idea & an Actual Passion to Pursue It
Incubators do not just allow anybody in. They seek business plans that are defensible – or some compelling analysis – that clearly shows that the company has the potential to grow into a healthy, well-to-do, standalone business, thus boosting those success rates.
2. Join at the Right Time
Start-up entrepreneurs need to think of what they aim to obtain out of the incubator they have in mind. Such programs can give a great head start to small enterprises but all of it depends on timing. Joining one at the inappropriate or wrong stage of their journey could prove to be counterproductive as it could lead to feedback overload or stunt the company’s growth in other ways.
3. Study the Incubator Network in Advance
All business incubators aren’t the same. Entrepreneurs need to do their homework to understand what each incubator offers in terms of services and resources. The offerings and corresponding costs must match the requirements and capabilities of the start-up and its team. Therefore, entrepreneurs need to do some due diligence to figure out the right fit.
4. Connect with All Founders and Alums in the Cohort
Most incubators will list those companies which have gone through the process. Incoming entrepreneurs can contact former incubator businesses and discuss their experiences to get genuine feedback. Even after starting as an incubatee with an incubator, founders must connect with other founders currently on board to boost their network and share experiences.
5. Attend Workshops, Make Notes and Follow-up with Speakers/Hosts
In addition to workspace and back-end assistance, most business incubators also organise professional development workshops and programs as well as ample networking opportunities. Such networking events and open houses conducted with leaders and speakers are an ideal opportunity for start-up entrepreneurs to get noticed. To make the most out of such events, founders must make notes and follow-up with speakers to share their feedback.
6. Know What is Required from the Program
Before taking the plunge to get on board with an incubator, it’s vital that start-ups have a clear-cut agenda in their mind about their own goals and what they would like to achieve from the program. Diving in with a clear timeline for their own startup and knowing what one wants to come out with, can assist founders in utilising the resources better.
To a large extent, a business incubator is a partner to every start-up in their process of building, refining and selling their ideas to the clients and investors alike. To make the most of such opportunities, founders must be proactive in leveraging all possible resources offered, and at the same time, ask for support whenever needed.
(Expert inputs by Disha Singla, Co-founder, Supreme Incubator)