What makes you feel better? Do you do it alone or have someone to help you? Kickstarting a new business for the first time can be daunting. You are bound to witness a roller coaster ride, especially if you don’t have adequate funds. In such situations, a reliable and lucrative source of investment can make a big difference. This is where startup incubators prove to be useful. Startup incubators can be big organisations, other companies, or even universities. These are reputed and rich institutions that can help the newbie entrepreneur get started, both quickly and efficiently. In very simple terms, business incubators bridge the gap between the “market” and a great “idea.”.
With this being said, here are a few benefits and concerns about startup incubators:
Benefits of startup incubators
#1: Do what you love, stay productive and be less mundane
Startup incubators are known for offering “priceless” guidance to newbie companies. They take the time and effort required to support them with tips, suggestions, and resources. Incubators act as an umbrella for both angel investors and venture capitalists. They also serve as mentors, for helping entrepreneurs venture on the right track.
When most of the “support”, “advice,” and resources (including office space, accounting help, and legal backup) are taken care of, the entrepreneurs and their team “only” need to work. They don’t need to waste their time on mundane administrative tasks.
#2: Access to networks that matter
Next, business incubators will help you work and get in touch with networks that can make a big difference in your operations. Most of the time, entrepreneurs feel lost when they are left alone in the industry. Businesses must connect with niche networks, especially if their financial investments are large. In terms of public relations, a powerhouse network can be highly useful. As a newbie, there are only a few things you can do. But when you have the support and likeness of a bigger brand, the entire business perspective changes. It will strengthen your confidence and ability to scout for new opportunities and leads.
#3: Scratching Each Other’s Backs!
As funny as it sounds, startup incubators help in receiving timely feedback.
Feedback is extremely important for brands, both big and small. After all, clients are king when it comes to business. Constructive feedback can help newbie entrepreneurs engage in rigorous development activities.
Entrepreneurs are likely to learn many things the hard way. With business incubators, some of these “areas” will be addressed automatically. With startup incubators, entrepreneurs will be able to learn more about “critical” mistakes without making them.
#4 Knowledge from Mentors Who Belong to Street Cred
Startup incubators are often managed by professionals who are entrepreneurs by default. These are professionals who have decades of experience in the industry. Undeniably, they will be able to support you with challenges, roadmaps, and inspiring stories. Personal experiences from “actual” trenches can translate to great business development strategies. And most of these details will be shared without any secrets.
Indeed, working with pioneers from the industry is a blessing in disguise.
Drawbacks of Business Incubators
A major problem with startup incubators would be the huge number of applications made. You may need to compete with hundreds of budding entrepreneurs before securing the position. Unfortunately, the wait can be long and tiring. The competitiveness and rigors nature of startup incubators has increased drastically in the past few years.
Also, business incubators are not alike. Some would offer better support than the rest. And you may dream of securing them as your startup incubator. In such cases, you should be prepared to accept rejection.
