What is a Business Incubator?

In itself, a business incubator is a support center that provides you with specialized advice. So that your business idea becomes a reality. In addition, it remains responsible for evaluating and ensuring the viability of the concept, taking into consideration all the necessary resources for the business to be sustained over time. Financial, legal, human, technical resources, market situation, among others, to increase chances of success for your business.

Other words, you will have at hand the help of experts who will help you consolidate a business plan. That will define your idea, land what you want to do, considering the scope of the project, as fine as the possible limitations and obstacles that you may face.

In itself, the Ministry of Economy  classifies business incubators into three types, depending on the characteristics and functions it provides to its users:

Traditional Business Incubator

Traditional Business Incubator

Here you can find support to create a company in a traditional sector, that is; If you want permission to start a restaurant, a hotel or a store, you can turn to their experts. Since within the knowledge they have, they can help you with the basic physical and also technological infrastructure requirements. The approximate time to incubate a project here is three to six months.

Intermediate Technology Business Incubator

therefore if you have a slightly more complex idea and want to undertake a network, web application, food technology, telecommunications or specialized software project, you have to approach this incubator. Here the experts will support you in setting up companies that require a specific physical. And also technological infrastructure and semi-specialized operating mechanisms. It is not the same to set up a cafeteria as a computer security company. Here projects can be incubated for about 12 months.

High Technology Business Incubator

If the line of business you have in mind is information technology, microelectronics, electromechanical systems, biotechnology or pharmaceuticals, this incubator can give you the support you require. In this incubator, projects can take up to two years to complete, of course, depending on the complexity of the project.

Despite the time that a business incubator can take, having the support of a tool.Like these can be vital in the success of your project since it is estimate that by participating in a business incubator. Given the Ministry of Economics figures. You can increase up to 85% the possibility of success, survival, and growth of a business.

How to Select an Incubator?

Today, the market has a variety of companies or institutions that offer these services. However, before starting to work with any of them, you must understand in-depth the implications of costs. Royalties or subsequent payments, services provided, confidentiality and protection of your idea, industrial models or formulas. And it is that it takes into account that, before starting the business. The most valuable thing is your idea and you must protect it.

Here are some tips for choosing the perfect incubator for your company:

Look for Information

Therefore it is vital to know more about who will be the experts who will be advising you. What is the incubation process that you must follow, possible costs and the work that you will have to do to carry out your project.

Ask for Previous References

Incubators can often have certifications and awards to their credit for projects they have helped get ahead. Ask about the projects that have been successful and the projects that have been rated highest.

What Advantages do Incubators Bring to Entrepreneurs?

Having a qualified and prepared team in all areas of your business is one of the most significant advantages an incubator can offer any entrepreneur.

Therefore in this way, your business can achieve the expected results and also strengthen the brand necessary for the success of any business.

Access to facilities at a low cost and the authority. It can give you in the event of the need for financing or external capital contribution are other advantages of this type of program.

The probability of success of a business that goes through the incubation process is much greater than any other. It also offers you complete learning on the excellent development of your brand.

Conclusion

The business incubator is an organization that helps startup companies and individual entrepreneurs to develop their businesses. By providing a full-scale range of services starting with management training and office space and ending with venture capital financing.

Also Read: What is Sales Promotion? – Objectives, Characteristics, and Advantages

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