The aim of a startup incubator is to help entrepreneurs set up and launch their businesses. Thinking about joining one? Here’s everything you need to know.
It is important to keep in mind that no two incubators are the same. Startup incubators can be for-profit or not-for-profit. For-profit incubators seek to monetize their equity in your company. Not-for-profit incubators seek to grow your business to improve the local economy. These incubators are often associated with universities or business schools.
Incubators are involved in all stages of the company’s development, including the idea stage as well as the later, revenue-generating stage. Most incubators, however, tend to put focus on the early stage since this is where startups need the most help.
Most startup incubators admit companies in batches several times each year and generally run an application and screening process. Every incubator is different, however, some focus on a specific industry, market, technology, or stage.
If you have constructed your business plan but are still having trouble launching your startup, joining an incubator could be the right move for you. This will allow you to hit the ground running and help your startup be successful in its early stages.
There are several benefits of joining a startup incubator:
Resources
One advantage of a startup incubator is the access to resources. Incubators provide companies with resources to help them be successful. These resources could be things such as office space, equipment, utilities, and discounted or free professional services, like accounting or legal help. Having access to these resources can help accelerate your company’s growth.
Mentorship
Joining a startup incubator puts you in contact with successful mentors in your industry. These mentors have been through similar experiences and can offer some direction. Mistakes are bound to happen to anyone going through the startup process, however, these mentors will be there to help you avoid some of these mistakes by offering their guidance.
Networking
Another advantage of an incubator is the networking opportunities it provides. Most incubators have access to a network of successful business partners, providing ample opportunity to secure funding. Most startups are going to have few connections and limited budgets for marketing. The exposure these networks provide is very beneficial for anyone in the beginning stages.
There are a lot of things to consider when determining whether to join an incubator. Incubators can provide some great opportunities for startups looking to succeed, especially if they are in the early stages. It is important to be diligent and do the necessary research to ensure you are choosing the best match for your startup.
Currently serving as the Entrepreneur-in-Residence (EIR) for medical device and biosensor technologies at GLIDE, BioEnterprise and JumpStart, Russell Donda has more than 25 years of management experience at both executive and entrepreneurial levels. As an EIR, he helps company founders assess the commercial feasibility of their technology; with that feasibility confirmed, he assists in creating and implementing their development plan and ushers them through the local seed funds.
