What is a Business Incubator?
A business incubator is an organization that is designed to help speed up the success and growth of a business in its early stages. Incubators are usually a great way to access capital from state governments, investors and economic-development coalitions. The (NBIA) National Business Incubation Association hold over 1400 members in the US alone.
How do they function?
Incubators come in either virtual or physical form. In a physical form, their job is to network with coaches and entrepreneurs and often refer to themselves as accelerators rather than incubators. This is mainly when their primary role is to kickstart businesses that are already ready for growth.
Most business incubators have capital to invest or if not they have connections to possible funding. An incubator normally has access to a number of services including; lawyers, accountants, coaches and most importantly – connections.
The Pros: Using an incubator has the potential of gaining you access to an extensive networking system and expertise.
The Cons: The main con about using an incubator is that sometimes they can deter you away from your focus during the early stages of your businesses development.
Before you choose to use a business incubator, you should take some time and do some research to see if an incubator is a right fit for you and your business.
Don’t act hastily either, take your time and think about whether or not your business could benefit from a business incubator. If you do, decide to use one don’t hire the first one that comes your way. You will need to look around and find one that offers the services that you believe are the best option for your company.