There is a thin line between starting your business and discarding the thought altogether. And in that thin line lies the idea of the business. If you believe that your startup has the potential to establish and grow, you should join a business incubator instead of doing it on your own.
You probably would have heard of what an incubator is. Shortly put, a startup incubator is an organization designed to boost the growth and success of startups. If you are having second thoughts about joining one, here are 13 reasons why you might want to think twice.
Why Joining A Startup Incubator
#1 Boosting the growth of your startup
When you are just starting your business, it is difficult to accelerate its growth without avoiding pitfalls. While pitfalls will always be a part of your business journey, the mentorship, funding, and networking opportunities you get from a business incubator can take our company to the next level.
Joining an incubator means you won’t require taking unnecessary risks, such as huge loans, investing in equipment, and more. It gives your business all the opportunities it needs to establish in the market. And once your business establishes, it automatically starts to grow.
#2 Restructuring for higher efficiency
Another reason why you should join a startup incubator is that it will give your business the much-needed restructuring so that it focuses only on its primary goals, such as the products or services.
The majority of the entrepreneurs fail to see the need for restructuring their business functionalities for higher efficiency. During the initial stages of any startup, the majority of the entrepreneurs just focus on staying afloat. This utter focus of surviving the first wave makes it difficult for any business to take off. Instead of just trying to stay alive, it is important to look for ways where you can experience any sort of growth. Restructuring to maintain business focus is how you can escape this facade.
Business incubators are equipped with the expertise of the sought-after professionals who can help you rethink where you went wrong (if went wrong) with your business structure and how you work on bringing your focus solely on the core of your business.
#3 Accessing to massive funding
Funding is something that every startup requires. There are business incubators that provide startups with surplus funding for business establishments. For example, the 12-month Avalgon program offers $400,000 to each startup. Funds are allocated in different areas, such as fundraising, legal, marketing, and human resources.
Incubators work with numerous financiers and investors who are keen on investing in a good business idea. Joining an incubator could solve your funding problem, and you can discover just focus on improving your business operation rather than worrying about the investments.
#4 Exposure to industry leaders & mentorship
One of the most noteworthy aspects of a startup incubator is that it gives you exposure to industry leaders and mentorship. These are the experts who have already built a name for themselves and successful businesses running.
They can teach you the necessary skills and shower you with knowledge. You can learn from their experiences and avoid the common mistakes that a startup can make. The best thing about a business accelerator is that it has a whole team of industry experts and some amazing mentorship programs that any startup program would love to have.
#5 Lowering the space costs
When you join a business incubator, you don’t have to worry about hunting down and renting an office space. Incubators offer different types of workspaces at a fraction of a cost that it would take you to lease your own space. Renting an office space can put a dent on your finances as it is considered one of the latest expenses a business has.
Business incubators can provide you office space either for free or at a very minimum rent. Based on the type of business, you can choose from a single cubicle, private office, or shared office space at a low cost.
Yet, if there’s anything we have learned about the COVID-19 pandemic is that we can all benefit from working at home. Not only your employees gain more flexibility, but you avoid the high costs of renting commercial properties. As a 100% online incubator, Avalgon has a track record for helping companies adapt to digital structures.
#6 Lowering the costs of sophisticated equipment & technologies
You will need a whole infrastructure when starting a business. It includes systems and computers for all your employees, network solutions, and other necessary equipment for your business.
It is possible that you may not be able to bear the expenses related to purchasing sophisticated equipment and technologies. A startup accelerator can help you get all the equipment and resources at a fraction of the cost. The strong connections of incubators can add up in special discounts and deals. Additionally, the incubator might have business licenses for some software that you could use.
Whether you’re in tech, food, or finance, an incubator can help you with the supplies and may even provide you and your employees with training for the use of equipment and technologies.
#7 Securing strategic partnerships
A partnership is a vital aspect of growing a business. While a business incubator may not force you to enter into partnerships, it will educate you on how the formation of partnerships can create new opportunities for your business while increasing your exposure within your industry.
When you join an incubator, you get the opportunity to meet new people and those who work in the same industry as yours. This way, you can share ideas and a few secrets that can help both parties.
Moreover, you may also be able to form partnerships with influencers and industry leaders who find your business idea interesting. This can streamline the process for you.
#8 Access to professional resources
You need professional resources like education, business tools, software, internet access, and even administrative support to establish and grow your business. Incubators are known to help startups with all the professional resources to make it easy for entrepreneurs with their business processes.
Some of the incubators even conduct workshops for entrepreneurs where they invite educators, industry professionals, and influencers to take seminars on topics like legal structures, obtaining funding, business fundamentals, future forecasting, and quick prototyping. These workshops and seminars are extremely beneficial professional resources that will help you gain insight into how businesses actually work.
#9 Increasing networking opportunities
As said earlier, incubators bring networking opportunities among entrepreneurs. In order to grow your business, make your product or service reach its targeted customer base, networking is absolutely essential.
In business terms, networking is the process of building relationships and exchanging information with fellow entrepreneurs, industry leaders, and other professionals. Without a solid foundation, it will be difficult for you to find like-minded people who are interested in what you have to say.
Business incubators help in bridging this gap by bringing all the potential influencers to the same platform. When you join an incubator, you will have access to some already-established businesses you can look up to for inspiration and networking.
#10 Obtaining high-quality business support
Business incubators often provide additional support to the entrepreneurs in the form of CFO services, regulatory experts, patent attorneys, and law firms. While these services are not free, you will get them at effective prices. You can choose from the business support services based on the type of business and the industry.
This type of support is important because not only will you be learning things and accessing technologies, but your team might need the necessary support and encouragement from experts to get started with. Your founding team will be grateful to access the key industry experts and advisors to learn a thing or two.
#11 Developing the skills of the team
As mentioned, skill development is an essential part of any startup. Your team may be well-versed in the technologies and may boast the understanding of the market; they will need advice on the use of the right tools and techniques for the execution of business operations.
Business incubators help startups create an effective strategy that will lead to skill development and exposure to different tools and techniques that can make the job easier. You can work with your team to create critical strategy documents like a technology roadmap, marketing, sales strategy, financial forecasting, and an effective business plan. This way, you and your team will be able to identify gaps in essential skill sets and work on improving them.
#12 Boosting motivation and morale
The first few months are not easy for the entrepreneurs and the team to cope with. There are challenges, and if not stay motivated and encouraged, your business may not be able to see the next financial year.
Business incubators continuously conduct seminars and workshops that work on developing business skills and also work on the individual’s overall personality. Motivation is the key to the success of any business.
Incubators allow you to meet industry experts and influencers who were once in your place. Having a talk with them, learning about how they approach complex situations, and more is a great morale booster.
#13 De-risking the investment on the startup
Once your business starts to thrive, it gives your potential future investors a reason to invest in your business.
Seeing you work hard, believing in your product or idea, and reaping the rewards, are all that an investor wants to see. As a result, more and more investors would want to invest in your idea and business. Ultimately, it de-risks the investment in the startup.
The Bottom Line
Entrepreneurship requires a lot of hard work and a bit of luck. If your business has what it takes to become an industry leader, you should join an incubator to help you polish and refine your ideas, provide you with all the resources, and help you work on the establishment and growth of your business. It is better to join an incubator or startup accelerator than to work on things that are nearly impossible to achieve without background support.