You have a great startup idea. Considering the boom of startups in today’s business environment, what do you need to consider in order to get your startup off the ground? How much work have you done so far, and what more needs to be done? What level of mentorship do you need?
Most entrepreneurs appreciate the value of utilizing a business incubator or accelerator. Entrepreneurs receive the benefits of mentorship, technological infrastructure, facilities, and financing guidance—great resources for startups. So, how do you know when and if your business idea can benefit from an incubator?
You have a great idea for a product, service or business, but no clear idea about where to start
The typical entrepreneurial journey begins with an established problem the innovative solution—at least that’s how it’s supposed to start. Still, most innovators have a product or idea in mind, but no strategy for transforming it into a viable venture. Business incubators can help determine and confirm market opportunities and help cultivate a plan to infiltrate those markets. Incubator mentors can help with questions about licensing technologies as opposed to selling outright, pricing and revenue models and more.
You need to grow your team
Not every innovator is skilled at running a business. While you may be skilled in technology development, it doesn’t mean you have the business acumen required to make a company successful. You may need to build an experienced team to launch and scale your business successfully. Entrepreneurs who can recognize the need for a CFO, COO or even a co-founder then a good incubator can help you identify administrators, executives and strategists with whom you should be networking.
You have achieved success, but need help scaling up, or your business has hit a bump of inactivity and needs a boost
Business incubators can help entrepreneurs with scale and pivot. Whether you’re aiming to expand your business or to end a period of stagnation, a business incubator can help you pinpoint new market opportunities, take measures to improve efficiency, or modify your business model to cut expenses and grow income.
If you have a startup idea or have already launched a business that needs some help, consider turning to an incubator.
Here are some awesome facts about business incubators and the startups they support from the U.S. Economic Administration, The National Business Incubation Association, and other sources:
- The five-year survival rate for incubator startups has been reported from 75 percent to as high as 87 percent.
- It is estimated that 40 percent of investment-seeking member companies source investment through a direct incubator program connection.
- Thirty-seven percent of incubators focus on technology businesses, while 54 percent are “mixed-use,” helping a broad range of early-stage companies.
- Business incubators have been around for more than 50 years, and there are more than 7,500 worldwide.
- Airbnb and Dropbox and Airbnb are just two famous corporate brands launched in a business incubator.
- Coca-Cola, General Electric and Microsoft are a few of the corporate giants big name corporations that have business incubation/acceleration programs.
- Business incubators can help entrepreneurs lower their startup’s launching and operating costs 40 – 50 percent.
Often, incubators provide entrepreneurs with idea sharing opportunities and unexpected benefits that can yield rewarding results, and advance an entrepreneur’s knowledge tremendously.