As more people have been creating their own businesses as part of the tech startup craze, the number of startup incubators has also increased.
What is a startup incubator?
Read on for an explanation.
A startup incubator is a collaborative program. It is aimed to help new startups succeed. Incubator programs help entrepreneurs solve some of the problems commonly linked with running a startup by providing work-space, seed funding, mentoring, and training. The sole objective of a startup incubator is to help entrepreneurs grow their business.
While most of the media attention focuses on tech startups when it comes to talking about incubator training program, the incubators aren’t just limited to one industry. In fact, the focus of incubators varies by even region. Given the strength of its restaurant and fashion industries, NYC is home to several incubators for both food and fashion. There are also all-purpose incubators that consider all kinds of startups, regardless of industry.
What are the Most Common Startup Incubator Services?
Here is a list of the most common services provided by business incubators:
- Help with business basics
- Networking opportunities
- Marketing assistance
- Accounting/financial management assistance
- Access to bank loans, loan funds and guarantee programs
- Help with presentation skills
- Connections to higher education resources
- Connections to strategic partners
- Access to angel investors or venture capital
- Comprehensive business training programs
- Advisory boards and mentors
- Management team identification
- Help with business etiquette
- Technology commercialization assistance
So, to grow your business or expand into other markets, incubators provide you with the means of following successful strategies and eliminating risky ones. Find below a list of some reasons why a startup may want to consider partnering with an incubator.
Networking is essentially important to see both short-term and long-term growth. Networking is the act of exchanging information and building relationships with other professionals, leaders, and startup entrepreneurs within your industry. If you’ve never started a company before, you’ll likely find it difficult to develop a strong network without a solid foundation of professional relationships and connections in the industry. In order to build a strong and effective network among other leaders and entrepreneurs in your industry, incubator training is the right option to make you familiar with the perfect method of doing so.
Access to Professional Resources:
Incubator training programs host regular workshops for the numerous startup partners at the incubator. These workshops often focus on topics such as future forecasting, business model, preparing pitch deck, how to obtain venture capital funding, legal structures, and quick prototyping. All of these workshops are typically provided in one location, which means that you won’t need to travel every time you think a workshop will be beneficial for your company or team.
Exposure to Industry Leaders & Mentorship:
Learning from the experiences that other successful entrepreneurs have had will help you avoid some of the more common mistakes that a startup can make. Incubator training programs will provide startups with access to business and industry leaders, which is another key business opportunity for your startup that would have been difficult to otherwise obtain.
Access to Funding:
Incubators provide startups with access to funding opportunities through investor relations or programs that facilitate a transfer of funds. Incubators typically have numerous partners that they work with to assist the startups that are using the incubator. These partners will oftentimes provide startups with funding and other invaluable resources.