ShareThisBy STEPHEN WINDHAUS
Monday, November 06, 2006
For all the years I served in non-profit small biz support networks, I simply took it for granted that all entrepreneurs were aware of small business incubators and the value these programs provided startup businesses. I have learned that is not the case. Startups, and even those who have been in business awhile, may want to consider the incubator option, as opposed to going it alone.
BASIC INCUBATOR SERVICES:
Small business incubators vary from one location to the next. Services can be varied, and you may or may not pay a fee, but here is what is most commonly offered:
_Office space - the most essential offering of most every incubator is the provision of office space at less than competitive, commercial rates.
_Office equipment & furniture - most incubators provide office furniture and community access to equipment like printers, computers, telephones and more.
_Answering service - typically an incubator will be staffed with a receptionist and/or secretary who receives visitors and takes telephone messages.
_Mentoring/counseling - incubators do not want their entrepreneurs to fail. Practically, every incubator has a staff person who is trained to provide business counseling services.
_Capital investment - Depending on the incubator, there may or may not be direct access to seeking capital investment. More sophisticated incubators, especially those specializing in technology may provide direct access to venture capital. Others simply work with local organizations or the Small Business Administration (SBA) to assist your efforts to raise capital.
The level of services will vary from one incubator to the next. Fees may be charged for some or all the services. The incubator has to cover its own expenses operating the site, funding staff and maintaining an excellent level of services. Furthermore, many will insist on the start-up paying fees, a constant reminder that nothing is free. But the fees you pay will most likely be much less than in the open marketplace.
THE INTANGIBLE ASSETS:
I was privileged to work in incubators for five years, and witnessed wonderful successes and some failures. I found the following intangible assets proved most valuable to all the entrepreneurs:
_Knowing you could share experiences and advice will fellow startups. There is a sense of not feeling so alone in the times of difficulty.
_Having staff that truly cares about your success is much better than finding yourself in a crowd of competitors who are ready to outdo you at every turn.
_Networking with small business advocates and organizations can open doors of opportunity that will not be found elsewhere
Just as the name implies, an incubator is designed as a nurturing environment that cuts down the potential for failure.
WHERE TO FIND AN INCUBATOR:
Business incubators come in many varieties based on whether they are for-profit, non-profit, or specialized in certain business sectors. The most reliable source for finding incubators in your area would be the National Business Incubation Association (NBIA). Go to their Web site at www.nbia.org, click on the link (on the left side of the home page) for 'links to member incubators'. You will be directed to a page requesting the state or country of preference.
