Finding a Quality Business Incubator

When looking for an incubator there are severalSome want a full business plan for example, which
things you should be asking your self. All of thesecan take months to create. While others offer
initial questions pertain to the future, the past, andassistance in creating a business plan and require a
the people.simple documented idea.
Past Success • How many successfulBe sure the incubator is a good fit for you.
companies started in this incubator? • HowCreate a check off list using a spreadsheet
long has the incubator been running? • Whoprogram with your resources requirements in the
funds the incubator? Is it a non-profit orfar left column and the incubators you are looking
government program? • Have there beenat in the top row. Place an X or a Yes in the
drastic changes in the program lately? • Whatboxes where the incubators comply with you
do non-successful companies & partners of theresource requirements. Be sure to add intangibles
incubator think about it? • How long have theto the list such as knowledge and connections,
successful companies been separate from theknown today as social networking. A
incubator?biotechnology incubator will have connections
Your Future: Graduating the Incubator • Whatspecifically for Biotech manufacturing and Biotech
are the incubator's exit requirements; or you areVC funding while a .com incubator will have access
too large to be incubated any more criterion? Thisto software developers, website servers, free
is usually called Graduation. • Is there a lot ofsoftware, & perhaps even computers.
leeway or flexibility in the contract, or doe sitFurther Information
make you feel confined? • How long does itThere are over 1,000 incubators in North
usually take for a company to graduate?America, in 1980 there where only 12. While there
Incubators usually do not like to keep companiesare over 4,000 business accelerators world wide
any more than three years, if the incubator has ait can defiantly seem like a daunting task find the
few who linger too long you may find the workright one. But that's just it, after you have put so
environment life draining.much time and effort into finding the right one,
Who are these People? • Is the workthe resource phase of your startup is practically
environment one of excitement or death? • Isover and your confidence in your company's
the staff happy and cooperative? • How longfuture will grow. You will be surprised at having
have they been doing their job? • What arethe right tools and knowing the right people can
their back grounds, how much knowledge do theydo for you.
really have to offer you in your industry? •I strongly suggest finding a niche incubator instead
Does the staff spend a lot of time at theof a mixed incubator. The National Business
incubator? 8 hours or more? • Are they orIncubation Association did a study of the different
have they been entrepreneurs? Are or weretypes of incubators here are their results:
they successful? • Do they adhere to the• 47 percent are "mixed-use," assisting a range
principles of self development in their profession?of early-stage companies. • 37 percent focus
Do they understand the best practices and keepon technology businesses. • 7 percent serve
up to date with them? • Do they havemanufacturing firms. • 6 percent focus on
successful graduated companies in your industryservice businesses. • 3 percent concentrate on
or a related one?community-revitalization projects or serve niche
Do you qualify for the incubation program? Somemarkets. • 44 percent of business incubators
incubation programs are fairly loose when itdraw their clients from urban areas, 31 percent
comes to letting you in. However, some havefrom rural areas and 16 percent from suburban
strict rules usually pertaining to the industry andareas. Nearly a tenth (9 percent) of all programs
resources they have on hand. Incubating a .comdraw clients from outside their region or from
with out high speed internet access can beoutside the United States.
troublesome. Starting a investment hedge fundConclusion
with out money connections can devastate theIn conclusion remember to do you home work
success ratio of the incubator. Many incubatorsand make sure the incubator is right for you. Be
have started to tailor to niche industries.sure to use a systematic approach, like that
Be sure to do your research on the incubator asspread sheet I mentioned, and remember the
effectively as possible making sure youintangibles can often be the Ace in the incubators
understand their qualifying policy before you apply.deck of cards.