Incubation is very important for today’s startups, people or person who are willing to open a new business. Because nowadays most of the startups are failing within 5 years due to some very common mistakes.
If you are willing to become an entrepreneur and build a successful multi-million dollar business, then this article is for you.
Some of the common mistakes are as follows -:
- Willing to make money for themselves instead of giving benefits to their target customers/consumers in the beginning
- Unable to maintain positive cash flow. Even though their PL/Balance Sheet shows positive result, but due to lack of cash, they lose their business.
- Less focus on finding their right customers/consumers. Due to which they starting offering their product to anybody.
- Lack of appropriate social relations. Because not all your relations can help you grow your business. If this was the case, then almost all people have very big social relations. But only very few people have a successful business.
Incubation means giving all kinds of support to person or people who have a strong will to start their own business. This includes mentoring, idea validation, different training kinds like technical, managerial, capital, funds etc.
Incubators are organizations/companies which gives incubation to small business. So, by giving incubation, they help business to survive for long years. Examples are Local Colleges, Universities, municipalities, Economic Development Organizations, etc.
Benefits of Incubation
1. Convenience to establish an Office
Incubators give office for new startups with all necessary things which are needed in the office. This is a very important benefit as office is one base foundation to run a business. The office cost should be either very low or free of cost.
2. Business Development Ways
Incubators arrange training programs and discussion by panels. This will be needed in cases where business is hampering due to blocked cash, falling customer or consumer response, improvement cycles in product, etc.
3. Opportunities to Invest
This is achieved through different outlets. Also, Incubators have their staff trained enough to find funding opportunities. It also allows your business to meet with private investors.
4. Business shown as Legit
Any business being accepted under incubation adds value to business. These means the business either is or will become very strong in future. Also this shows that the business conforms to the standard rules and regulations.
5. Easy to Expand Business
When a business gets covered under incubation, then networking becomes easy. This is because incubators connect your business with strong network of suitable business partners and investors. As a result, your business becomes more productive.
How to find right Incubators
1. Do Deep Research
You have to ensure that resources of incubators can fulfill your business goals. Also, their resources should help to overcome the troubles your business is facing or can face in future.
Check their network and experiences, because unqualified incubators who lacks proper experience and network can waste money and time of your business.
2. Take Proper Consultation
Find all those companies which are successfully running and who have been benefited mainly from incubators. Then ask them the experiences they had with their incubator. Another way is to do a survey among these companies and rate the results to take out the best possible incubator for your business.
3. Have a Strong Team
The team should be capable to withstanding major changes proposed by incubators. Also, they have potential to identify whether the team is strong or not. If team is strong then they will execute the proposed changes and the business may be completely transformed.
4. Ensure Appropriate Budget of Incubator
Involving incubator in the company will cost to your business. It can be in terms of profit you have to share to incubator from your business. So, an experienced incubator will make a proper budget.
5. Location of Incubator
Ensure that the distance between incubator’s place/office and your business location is approachable. Because you may have to visit the incubators regularly (like once in a week, etc) to find solutions for problems in business or financial transactions/exchanges, etc.