Stuck at the idea stage with a great business idea? Look to business incubators to give you the boost you need.
A sad number of great business ideas are lost to history because the inventor or entrepreneur lacked the experience or network to take it to the next level.
Enter business incubators.
As the name suggests, business incubators are organizations that assist startup businesses with getting off the ground, offering a variety of resources and services meant to nurture and accelerate its development. These resources include unmatched access to experienced entrepreneurs, consultants, talent, and sometimes even startup capital.
Business incubators — organization that supports startup and fledgling companies by providing a variety of resources and services meant to accelerate its development — are becoming very popular and growing in number, reach and effectiveness. They’re often a good path to capital from angel investors, state governments, economic-development coalitions and other investors.
While incubators vary widely in services and resources provided, as well as cost to be accepted, most entrepreneurs find them invaluable. The application process is grueling, with thousands of companies applying for a very few number of spots. For this reason, would-be entrepreneurs need to be prepared before they even start.
These services come at a cost, however, which includes a commitment of your time, a portion of your startup’s equity, and even straight up fees. Additionally, applying for an incubator can be a long and grueling process, with thousands of companies vying for a handful of spots.
Regardless, incubators are an invaluable resource for startup entrepreneurs.
What is startup incubator:
Startup incubator can be potential startup idea? the answer is, yes. Startup incubator is a protector/guard which will look after an idea until it gets shaped up as a matured startup. Usually a pre-matured child needs intensive care with senior doctor’s monetization, sensitive medication with a proactive environment, same way an idea needs guidance from experts, how to strategize, how to get the product ready, how to promote the product, how to get funded, how to tweak business model etc.
Why do we need private startup incubators?:
Well, fortunately or unfortunately majority of the national governments are investing for startup incubators at premier educational institutes which is very good. However, regular institutes doesn’t have Startup incubator facility. Why are we limiting opportunities to only premier institutes? we have good talent from outside either. If shared office space, experts, funding, guidance, and ecosystem are accessible to everyone, perhaps, % of success ratio increase as aspirants also be more. Private startup incubator can bridge this gap, they can facilitate the ecosystem and bring the expertise to encourage hidden talent.
How can be profitable:
It can be profitable with few potential ways to generate revenue,
1. Office space — Primary revenue channel
2. Workshops — Few workshops can be charged by bringing experts in
3. you may get an opportunity to invest in potential startups
4. Consulting services can be charged 5. you can be a channel partner for corporate and startups as well. A part from these we have many other channels can generate money based on the startup, people and environment.
Why every big company is setting up an incubator:
This is a real business strategy every corporate is playing now a days. These guys will incubate early stage startups by
- Providing office space
- Providing some tools
- Access to their customers and investors
- Mentoring by experts
This typical business association would provide advantage for both startups and corporate. Corporate can’t hire who has an entrepreneur mind however, they can only hire an employee. Similarly, it is much easier to associate with an entrepreneur as a business partner. For instance, investing in R&D, planning a product, recruiting highly passionate and talented individuals are pretty expensive for a company rather investing in many startups.
Startup incubator needs little more funds than a regular startup but it can be profitable with right business model.