Incubation helps Startup founders find their feet, learn the ropes, and understand the involved in their companies.
Recently, a slew of new businesses have sprung up, each with an issue to address or a service to offer. Despite their good motives, many businesses end up shutting down
What went wrong?
Most of these startup founders have a fantastic idea of what they want to do, be it a product or service but they lack the needed combination of marketing strategies, network, and other necessary components needed to scale their startup. This is where startup incubators come in, they provide these startups with every available support necessary to scale that idea into a profit-yielding venture.
Startup incubators are entities or organizations that take startups through a business nurturing process till the business can stand on its own.
They could either be government or non-governmental organizations. The major aim of a startup incubator is to ensure that any startup it takes in succeeds.
Typically, a startup incubator will put out a call for applicants to pitch their ideas. Startups who match their criteria are accepted into the incubation program after the pitch session. There are various incubation programs and they stretch across various industries – food, tech, health among others. The duration of the startup incubation program varies.
There are a lot of ways startup incubators can help a startup grow, some of which includes:
- Idea Validation:
Without market value, any idea, no matter how brilliant, will fail. Through market research, startup incubators assist entrepreneurs in determining their market worth.
According to market research surveys, if the idea does not function as well as expected, it is re-vamped.
The procedure will be repeated until a market angle has been identified, after which a prototype will be created to guide the startup.
- Coworking Space:
Startups require office space in which to operate. The majority of the time, the founders of a startup are unable to get one for themselves.
However, these founders can share the office with other entrepreneurs and startup founders as part of a business incubation, lowering costs for everyone involved. Apart from saving money, these startup founders can bounce ideas off each other and form strong business relationships in the process.
Without funds, every Startups would be better off and resting at home. Every startup needs funding.
These incubators outsource funding opportunities for the entrepreneurs in their program. Demo days are held in some circumstances, where investors are invited and company founders are given the opportunity to pitch their companies.
The investors then choose a startup to continue a conversation with, with the potential of investing in them. Alternatively, an incubator may award funding to firms who excelled throughout their incubation period.
Additionally, through their startup incubator, entrepreneurs can apply for grants and loans.
This is another very important support given to startups by startup incubators. They assign mentors who are experienced founders to the startups in their program. The startup founders work closely with their assigned mentors, getting insights about running a business, noting what step to take and when to take that step in a business setting.
The mentors in turn commit time, network, opportunities, and many more to their assigned startup.