Business incubators bring strength to start-up businesses. They do so by providing a support process for fledgling businesses. They arrange for the resources, services and techniques necessary to take an organization from its beginnings to a thriving entity. The incubator process can have a powerful affect on the success of a new business. Generally, businesses established through an incubator process progress at a more rapid pace. Equally important, incubators increase the likelihood for business longevity.
Business incubators began in support of tech start-ups. Incubators now serve many types of fledgling companies.
A business incubator is actually an organization with management whose knowledge, skills and contacts they share with a select group of entrepreneurs who are starting new businesses. The management team for each business incubator selects the firms they bring into their fold. Their criteria vary; each incubator has its own areas of expertise that will drive the selection process.
Typically, an incubator will provide its clients with rental office space, flexible leasing terms plus shared business services and equipment. In addition, incubator management will work closely with each of their clients, providing guidance, assistance in seeking finance and other means of support.
In today’s virtual world, incubators also provide their expertise to businesses not located within their facility. Virtual clients may be remote or they may be working out of their home.
In 2005, North American incubators assisted more than 27,000 companies that provided full-time employment for more than 100,000 workers and generated $17 billion in annual revenues.¹ Business incubators have such a strong track record that more and more incubators have begun. It’s a business that is large enough to have its own professional association, National Business Incubation Association, http://www.nbia.org. Visit their website to learn more about incubators and to find incubators in your area. Perhaps an incubator is right for you, enabling the strong and rapid growth you foresee.