During the recent years, there has been a major shift in individual preferences regarding the line of professions. Many youngsters are now interested in having their own startups, rather than being a part of the 8-hour job cycle. While many are interested in having their own cafes or clothing lines, there are several individuals who want to convert their unique and creative ideas, related to technology, into reality.
Why are individuals leaning towards having their own startups?
Throughout centuries, being an employee has not been an easy task. You have to follow a set of rules and regulations, deal with many different types of people and most importantly, follow deadlines set by your head. Many youngsters, however, are not well-suited to fit into this environment; they believe in being their own boss. These youngsters want an adventurous and happening life instead of the monotonous routine. As a result, there has been a significant increase in the number of individuals starting their own business.
However, having your startup is not easy. It requires a lot of effort and resources. Many people do not have such resources readily available to them and thus, this is where incubators come in handy. Business incubators are basically companies that help new and startup companies to develop by providing different services, ranging from management training to finding proper funding for the startup. In other words, an incubator can also be called assistance to starting up a business.
So how exactly does an incubation company help technology-based startups?
Individuals do not have to worry about finding sponsors to finance their venture or even finding the right office space as all this is provided by the incubation company. For technology-based companies, finance is one of the major hurdles. This is because technology is not cheap; even small equipment costs hundreds of dollars. An individual may have a unique idea, but he cannot be successful if he does not have enough resources. Although incubation companies are a fairly new addition to the world of business, Hewlett-Packard, Microsoft, IBM, Amazon, and Oracle, among others, which are considered prototypical technology companies – all started off as small startups but went onto the path of success with the right assistance. This assistance is now provided by incubation companies.
How to choose the right incubator?
Choosing the right incubation company can be a difficult task since the incubation company is likely to decide the future and success of your business. In the case of technology-based startups, the most important factors which should be kept in mind while choosing an incubation company are the incubator perks and track record. This is because technology-based startups require more specialized training and guidance as compared to standardized business and one wrong step can create lots of hurdles. Apart from this, you should also keep in mind the cost (since it’s a part of the investment) and the location of the company. The closer it is, the better – since you’ll be visiting it several times in a week.
Pros and cons of incubation companies
An incubation company can benefit your startups in many ways. As mentioned earlier, the company can make or break your startup. Here are a few benefits of using incubation companies:
Firstly, incubation companies offer a range of services at a low cost which helps startups by lowering their initial cost. This includes office space, computers, and administrative support which are usually costly. Secondly, incubation companies also offer business development programmings such as workshops and panel discussions. This information can be of great benefit to entrepreneurs may not have such knowledge. Apart from this, they may provide startups with expertise in certain areas which might not be accessible to startups otherwise. Incubation companies also have a strong network which includes many investors. Thus, being an incubatee makes it much easier for any startup to find an investor as it increases the credibility of the startup.
However, this may not always be the case. In order to become a part of an incubation program, an entrepreneur needs to go through a rigorous application process and considering the amount of competition in the market, it gets very difficult for startups to be selected. The entrepreneur may also be required to submit a detailed business plan and once he commits to the incubation company (which is usually for a year or two), he cannot make changes in this plan without consulting the incubation company first. An entrepreneur must also keep in mind that once he becomes a part of the incubation program, he cannot come and go as he pleases. The entrepreneurs have to follow a set of rules designed by the incubation company. In other words, it can be said that the incubation company is the boss.
Planning to start your own business? Do keep these factors in mind and you’re good to go!
I am Joana who loves to write about personalities, celebrities and cover fashion stories around the globe.