Incubators – they are not a child’s play

If you want to learn how to ride the bicycle you have more options to reach your goal. You can decide to go through on your own and learn the hard way, or you can use auxiliary wheels to keep the balance, avoid injuries and speed up the first stages of the whole learning process.

Business incubators work somehow similar: they could guide your startup through the first challenges with giving a helping hand so you can focus more efficiently and safely on growing your company after it is already structured.

But what is an incubator exactly? In a nutshell it is an organization designed to accelerate the growth and success of entrepreneurial companies through a range of business support resources and services; like physical space, capital, coaching, mentoring, common services, and networking connections.

But what probably describes more the relevance of incubators is that entrepreneurs who get their start at an incubator have a higher success rate, on average, than their brethren who go it alone. It is often quoted, that incubated businesses have an 87% survival rate (opposed to the overall survival rate of about 20 percent for all startups), and 84% go on to do business in their local regions; not to mention that incubated firms grow faster  than their non-incubated counterparts.

Of course the coin has two sides: incubator services come at a price (cash, equity or opportunity costs, success fee), therefore this is a serious business decision to be carefully evaluated – like almost every decision when it comes to starting up a company.

At DBH Group’s SeedStar with 20+ years of international investment experience we are assisting the development of seed-stage companies as we provide incubation and acceleration complete with mentorship, office spaces, fund raising support, business services, legal & trust services, team development and alumni services. Learn more and contact us at dbh-seedstar.com.

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Sources:

Entrepreneur.com
BusinessNewsDaily.com
Forbes.com
Entrepreneur.com