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Did you know tech biggies like Swiggy was once incubated as a budding startup in a Government agency? So, if you have a business idea, how do you convert them into commercials? Are incubation centres important? How to maximize learning from these centres? Read on!
The startup scene in India is on a rise like never before.
However it’s a proven fact that in order to build a solid and sustainable business foundation, one really needs to seek expert guidance and hand holding. In the start-up world we call them incubators and the process is called Incubation.
Entrepreneurship is certainly not an easy path and it throws myriad challenges on your face at each and every step. Right from the idea generation to execution to juggling with legalities and regulations, the list of challenges are endless. Considering these facts, it is not easy to get started on this journey without an expert help or assistance.
So, how do we move ahead and find this help? The answer is INCUBATION. There is no better or more proven method for getting your startup funded than being part of a successful incubator. While about 60% of all technology startups will fail within the first three years, 87% of incubator companies are still going strong even after graduating from their incubation programs. Incubators have an answer to the problem. Whether you are just getting started or are looking to startup, incubators can serve as a great platform to give you that much-needed support and a push to build a solid foundation.*
WHO ARE INCUBATORS:
Business incubators are assistance programs that provide entrepreneurs with a conducive, cost-effective start-up environment and a plethora of required services like - networking, administrative, good ambience, consultancy and many other things.
"They offer low-cost space, shared equipment, and the comradeship of fellow entrepreneurs," Richard Steffens wrote in his book Planning. "An incubator usually houses about a dozen tenants, who stay two to three years, then 'graduate' to commercial space. At their best, incubators help new firms create jobs and revive communities."
Difference between Incubators and Accelerators:
A lot of times people confuse between incubators and accelerators. There’s a difference between the two. Like an incubation chamber, incubators help in sprouting and germination of start-up ideas and thought process. Accelerators help to accelerate the speed of your business and also an existing business or an idea. They help you scale up, hone an idea and build a product out of it.
BENEFITS OF INCUBATORS: HOW DOES AN INCUBATOR ADDS VALUE?
Strengths of incubators include the following plus factors:
REDUCTION IN OPERATING COSTS:
In a business incubation environment everyone shares the entire overhead costs that include food, utilities, office equipment, meeting rooms, laboratories, and other necessary day to day services. This allows the entrepreneur to take control of his initial costs which otherwise can eat into the profits and earnings in the beginning. However, you do not remain in this programme forever…it usually depends on the contract signs with the Incubator company.
CONSULTING AND ADMINISTRATIVE SUPPORT:
Incubator managers and staff members often provide wonderful insights and information on a broad spectrum of business issues - from marketing to business expansion to finance and networking.
Usually people involved in the incubation management programme are knowledgeable and experienced when it comes to business environment and learning. Hence their guidance is priceless to new business owners and start ups.
ACCESS TO CAPITAL
Depending on the contract, many incubators provide the business owners an access to the easy-stage capital which is a much required resource in the teething stage. Lending a hand at this stage of business and providing access to seed capital is sometimes desired by the emerging business.
THE COMMUNITY FEELING:
The gathering of entrepreneurs under a common roof creates a wonderful feeling where they can grow together and provide encouragement to each other on this rocky road.
Knowledge sharing, networking and providing motivational support amongst fellow entrepreneurs, are definitely one of the many perks of the incubation environment.
HOW TO CHOOSE AN INCUBATOR?
The best incubation program is the one that suits your business' needs. Here are a few tips on how to choose one:
1. RESEARCH & ANALYSIS:
Incubator programs when it comes to industry and expertise required, services offered and the mentoring that helps one sail across. Hence a deep research and analysis while choosing your mentor really helps.
2. CHOOSE YOUR MENTOR WISELY:
Make a list of your business requirements, strength, weakness and the kind of support you would require. Accordingly, approach people and see their capabilities which should align with your needs.
3. BE CLEAR WITH YOUR IDEA:
Incubators are also choosy and selective. They are always hunting for a good concept and innovative ideas. Your business idea and plan should be viable enough to catch their attention and interest. A strong team and a great track record is always a plus point
4. NETWORK MATTERS:
In a start up environment, the network is gold and references matter. A right connection can propel your entry into an incubator. Keep looking at the people who are in your network. If you are acquainted with a founder who has successfully been a part of an incubation management process, you can strike a chord with them.
Leveraging and Tapping some of these existing relationships can open the door to some brand new wonderful opportunities. You can also use social media and online platforms lextensively, where you can create a profile and share your idea and proto type within a relevant network.
Source: Tech crunch, Inc 42
