Developing a Successful Business Incubator
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The term business incubator refers to a facility specifically designed to provide programs which accelerate entrepreneurial companies to successful growth. This is achieved through the provision of a number of different business support services as well as resources. These are developed and managed by the team responsible for the creation of the business incubator program.
Different incubator programs have different service deliveries. However, all successful business incubator programs increase the likelihood of a new company to survive in a specific market niche for the long-term. Thus, the business incubator program can also be seen as an evaluator of the business potential of a company.
In this article, we shall focus on the core components of successful incubators.
The first component deals with the structure of goals to be achieved with the use of the incubator program. A successful incubator program has well-defined goals, which are clear and well communicated. Through the determination of specific goals, the need for the incubator program is proposed tenants.
The second component of any successful business incubator is having a great manager. Start-ups have to deal with shaky starts as well as lack of properly developed goals. A successful incubator manager is able to provide the much-needed direction and coordination required by the incubator tenants.
Another core component needed for incubators to be successful is financing. Proper financing means that all components of the incubator can focus on the task ahead instead of worrying about funding. In most cases, it rests on the manager of the incubator to pursue capital for tenants. This is done through forming partnerships and grants, as well as other funding options.
Lastly, one of the most important components of any successful incubator is the business services and their relevance to market needs. Entrepreneurs may need different business services from the incubator. Thus, it lies on the incubator and its management to ensure that all the services are relevant to the different stages of entrepreneurial companies i.e. planning, start-up, as well as expansion.