Types of Business Incubators
Business incubators are plans or programs intended to augment the successful progress of entrepreneurial companies via several business support services and services orchestrated and developed by incubator management. Incubators differ in the way it offers services within an organizational structure.
A successful completion of business incubation program can increase the chance of having a triumphant business.
Basically, there are two kinds of business incubators namely non-profit and profit or known as private incubators. The non-profit ones are actually organized by the state. In case of profit business incubators or accelerators they are essentially organized alphabetically.
In case of profit business incubators they are managed and funded privately. They offer clerical staffing, phone systems, office furniture as well as office space and they may also provide mentoring or right to capital. The main objective is to accelerate as the company started to offer its product or services to the market. Mostly, it may just be just in the period of 6 months and not over 90 days. As you know, incubators are organized profit because private incubators are basically setup by venture corporations, entrepreneurs and capital.
There are some private incubators that also require the business owner to physically transfer their company near the incubator’s office but some don’t.
The fees for private incubators may include monthly service cost for office space, computer usage, telephone, administrative services and professional assistance cost. The incubator company would also usually take ownership position in every company it handles.
Advantages of business incubators
- One of the clear advantages of business incubator is the member companies could take the chance of getting services of such professionals like marketing firms, accounting firms, attorneys and other professionals who are prepared to render their services at a lower rate or as equity share. Meaning both parties will able to have a benefit for being within the business incubator.
- Moreover, another benefit of business incubator is it has a good reputation or track record of producing successful companies, even if there can be somewhat a halo effect to new member businesses, the benefit is enormously very applicable for the company to be successful. Most private business incubators recognize outside investors too.
Some consultation firm or association who identify themselves as pseudo-incubators offers services to assist new entrepreneur, which is also the same as real incubators. They actually help the corporation to find capital, accounting services and other assistance. They may also provide some pointers on how to make an effective business plan. The fees may be high but there’s an assurance that your business will be noticed and able to reach your goal to succeed.
Being part of business incubator can be the best means on how you can reach your whole potential to success.
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