The business incubator is now a common and recurring element in all the microcosms that surround the activities on start up. For many new entrepreneurs, especially in the world of innovative startups, the “incubator” passage is almost baptism of fire and the first step on the business world. For business now hardened instead, the business incubator, often seems only a reality for beginners.
Reading the definition of business incubator may seem that this is purely an ideal medium for companies looking for funds to finance the start up activity. Actually incubators are that and much more, and there are several reasons why a company should consider to be incubated, skills afterlife, financial resources and experiential baggage available.
Here are some good reasons to choose or not incubation and some tips.
# 1 – Looking for guidance and mentoring
Regardless of the type of business incubator chosen to develop their own business idea, all programs made available are intended to speed up the internal and external growth of the business, going to identify markets, products, customers and services to focus on to achieve the purpose.
The secret ingredient of a good accelerator is the ability to offer the same enterprise alongside the contact with many entrepreneurs, managers and investors already included in the programs. The sharing of experiences lived by these people and their feedback can make a real difference to speed up the development of a young company, assuring that attention and the centrality that allow it to identify essential factors such as, for example, the market suited to its potential customers in target or products and services to be offered. Clear is that anyone who does not consider a value added support given by professionals with long previous experience, can safely abandon the idea of relying on an incubator.
# 2 – Looking for feedback and fast results
Thanks incubator business, the long stages of defining objectives, login, sponsorship, customer research and progress measurement, are performed, instead of years, only a few days-weeks, to help the company to find out whether the business idea you have in mind is valid and how to ask to go in the right way.
Given that, on behalf of the company incubated, an incubator dedicates a good part of the time available to the realization of a wide multitude of tests, as well as the identification of the results to be achieved in the short and long term and looking for customer feedback, those who choose to adhere to the proposed programs have a real chance to find much faster than the others its ideal location in the market. If the first major support is in fact given by framing the new business and inserting it properly in its field, the second assistant to the founder aims to teach how to develop his young company, pointing the way to gain direct access to funding.
# 3 – Do you need a rapid growth
Given that, through its network, an incubator can easily reach a large number of potential customers (especially in B2B solutions), where the product offered by the Start Up has what it takes, you can be successful and generate results in days much shorter than those normally required.
The intrinsic setting of an accelerator with its hierarchical structure and the broad base of contacts useful for new businesses with a valid product-service to launch, allow themselves to speed up the long test phase and insertion in the proposed solutions market. With such support are reduced to a minimum the time required for the internal-external development of youth business and is allowed to the founders the opportunity to really get into direct contact with the target audience more interested customers.
# 4 – Are you looking for funding
Although fundraising is not never a simple step to manage, the business incubator helps and prepares professionals to obtain seed capital and financing Start Up, presenting potential investors and helping entrepreneurs to present themselves with a business as appealing as possible.
For the “young” founder of a new business can be extremely difficult to find lenders willing to invest in his business project. The accelerator is always in direct contact with many lenders and it is clear how much easier for those seeking funds to find them through incubation programs. These same programs aim at identifying the most suitable investor in terms of economic resources and affinity with the project, making it clear from the outset of both parties needs to ensure effective collaboration.
You may also like to read another article on Heygom: Management: 5 strategies to grow the business
# 5 – Looking for professionals to work on the project
For a StartUp have to deal with an incubator means to approach competent and motivated professionals, from which you can learn growth strategies to be adopted at startup and business development.
Given that those who decide to rely on an accelerator will have to pass most of the time available with the professionals of this structure, it is good that the program and the people chosen for tiling comply with the ideas of the founder and the core business of the new company. If there is no compatibility comes the risk of being dragged into an experience counter, but if you fail to establish a good feeling with everything related to the sphere of incubation can get amazing benefits-benefits already in the short term.
# 6 – Patti clear, reliable results
Given that, by definition, the business incubator is the structure that helps a business to achieve certain goals (insertion-affirmation in the market, looking angel investor, obtaining financing, etc.) Often in exchange for company shares, it is clear as it is in its interest to respect the terms of the agreement, doing everything possible to ensure in the short term the results agreed at the beginning of the relationship.
The first rule to avoid falling into false expectations when you partner with an accelerator, is to fully understand the terms of the offer made by the same: what you can get and what you have to give in return? At what percentage of the company you have to give up if you accept the incubation program? What are the rights and duties of both parties (and incubated incubator company)? If all conditions of the contract are clear and in line with the expectations of StartUp, the agreement can safely be tight with the expectation of mutual benefit in the established timeframe.
# 7 – Looking for a stimulating environment and in constant ferment
Generally each incubator respecting guarantees the StartUp incubated a stimulating environment in which many professionals are working, competing with each other to excel and pushing to improve their performance.
Incubator provides a naturally stimulating and in constant ferment environment, a place where people can continually compare, learn and make friends with those who potentially could be the business partner of a lifetime. If this is not what is sought or is not what it seems to offer the incubator, maybe it’s time to move on!
The wrong reasons …
As we have learned from these 7 points, the reliance to a Company Accelerator certainly brings real benefits in the short and in the long run but, in some circumstances, the available incubation programs can also betray the expectations, revealing of bankruptcy choices for the newly-formed company.
Such cases often occur when the founder is aimed at those facilities only for…
- Seek immediate funding: The economic factor should never be the only reason why you decide to opt in favor of incubation;
- Seek co-founders: It is always best to ask the incubation when the company team has already trained and motivated, because otherwise you are likely to be supported by people with conflicting goals and values;
- Have access to a free space in which to work: Being incubated does not mean find a nice place to spend their days, but it means prepare themselves to define a set of goals to be achieved by ways and precise timing.
This all the main reasons to choose or not to choose the incubation: an opportunity for growth and business development to embrace consciously to achieve the best results.