INCUBATION PROGRAM: LET US HELP YOU TO LIVE YOUR STARTUP DREAMS
​
‘How to start a startup?’ has almost become an FAQ. The must-do step for those who want to start a startup is to first explore the problems that people face in their day-to-day lives and find solutions to them. This approach would ensure your startup to be more demand-driven and enables the product or service you offer to reach more consumers. When you are ready with your idea, locate the incubator which can support you.
INCUBATORS AND INCUBATION: WHAT’S IN THE OFFERING?
A business incubator is a unique workspace created to offer startups and new ventures the access to the resources they need, all under one roof. Mostly, incubators are designed for early-stage companies and startups. In addition to physical infrastructure like a desk or office, incubators often provide resident companies with access to expert advisors, administrative support, mentors, equipment, training, and/or potential investors. The collaborative structures of incubators are designed so as to facilitate new and experienced entrepreneurs alike to incubate and grow their business ideas into successful ventures. So, if you're an entrepreneur/ a first-time chief executive officer (CEO) looking for mentorship and affordable office space, an incubator could be the correct choice for you.
Incubation is a distinctive and highly flexible mishmash of business development processes, infrastructure and people, designed to nurture and grow innovative and small businesses by supporting them through early stages of development and change. Typically the incubation life cycle comprises pre-incubation, incubation, acceleration and post-incubation depending on the maturity levels of the business venture.
WHY PRE-INCUBATION?
Having a good idea for a startup is a prime requirement. However, having the idea alone doesn’t assure its translation into a successful business venture. Lessons from the past demonstrate significantly high failure rates for the startups, mostly within five years of starting. In part, this reflects the competitive environment within which the businesses are launched. The effectiveness of the specific business idea, lack of experience of the entrepreneur and deficiencies in the environment where the business is launched (including shortage of capital, lack of information, legal obstacles, etc) also play critical roles in the feat of startups. To surpass this valley of death, pre-incubation can be an ideal way. A pre-incubation step can assist you to nurture your business idea and guide you through different stages of business evolution so that the success rate can be significantly enhanced. The core idea is to ensure your startup is well-positioned to meet the upcoming challenges in its journey.
PRE-INCUBATION AND ITS BENEFITS
Pre-incubation is the process wherein early-stage entrepreneurs with a business idea or project is facilitated to build a team and nurture the plan to convert it to reality. In the pre-incubation phase, the entrepreneur is provided with the guidance and support required for developing the business model, which is the foundation for building a successful business. Entrepreneurs in the pre-incubation process would require specific training, mentoring and consultancy services to understand viability, commercial potential, scalability and survivability of their business plans. These supports along with physical facilities such as open offices and common working areas will be provided during Pre-incubation to early-stage entrepreneurs for an average of four to six months (may extend further depending on the sector the entrepreneurs will operate in). During this phase, entrepreneurs set up a clear and feasible business plan by clarifying their ideas with the support of mentors and consultants they receive in pre-incubation center. Pre-incubation phase offers the best opportunity to establish the right team that can execute the right business plan that will save money. At the end of the pre-incubation, entrepreneurs will be ready to go into company with a correct and detailed business plan and its implementation. After that, they continue with the incubation phase.
If you are an entrepreneur who have high awareness of the functioning of the entrepreneurship ecosystem, with clear business plan and a capable team, you can skip the pre-incubation stage and settle directly in the incubation center.
INCUBATION PHASE
During the incubation phase, the product or service starts to take proper shape. The physical facilities and training, consultancy and mentoring services needs of entrepreneurs are met by the incubation center. Once the product is developed, the commercialization step, one of the most difficult stages of the enterprise process and management, begins. Further, entrepreneur(s) also begin to think about marketing strategies, while putting together pitches for development/venture capital funding. The duration of the incubation period may vary between 1-3 years depending on the sector of the enterprise.
ACCELERATION PROGRAMS
Companies that have moved beyond the earliest stages of getting established can join the acceleration programs. In general, acceleration programs are different from pre-incubation and incubation processes and are intended to help the companies that are ready with their products and started commercialization studies, but have difficulties in gaining market share and globalization. Startup accelerators typically focus on providing startups with mentorship, advice, trainings, events to reach the investors. Startups may receive a modest amount of capital from the accelerators, from an in-house venture fund, in exchange for equity (as agreed mutually) in the given company. Generally, the products of the companies participating in the accelerator programs are ready and commercialization studies have started, these companies usually start to earn income. In addition, since it is possible to compare the sales, turnover, profit, etc. expectations of the company with the realized values at this stage, these companies attract the attention of venture capital funds and angel investors. Private companies and funds not only invest in accelerator companies, but also often organize acceleration programs.
It is easier for startups to receive investments from angel investors and venture capital funds during the incubation phase compared to the pre-incubation process.
EXPLORE IIST WEBSITE TO LOCATE A MENTOR TO SUPPORT YOUR STARTUP APPLICATION