Business incubator is a ready to use office complex or warehouse set up which attracts less establishment costs. At the initial stage it may not be possible for every capitalist to ensure profitability, there may be loses too.
To be on the safer side, a shrewd businessman would always try to minimize risks.
Business incubators are viable cost effective options ideally suited to new entrepreneurs venturing in to business for the first time. These incubators can be utilized for initial years till the business is financially strong enough to have its own premises. You can reduce the overheard expenses by paying low rentals or sharing support services.
Step1 – Find if incubator is apt for your business. You can consider in the lines of floor area, facilities, nature of business etc. In general an incubator houses several small business units acquiring a floor space of 1000 sq. ft on an average. Thus a business incubator will not suit a manufacturing agency.
Step2 – Since several business units operate within the defined space of an incubator, you may have to look out for one that is compatible with your business. There are specific incubators catering to specialized field like software, consultation etc.
Step3 – Observe the other business set up residing in an incubator. Analyze those which could be your allies by providing support services for your firm. In case there are competitors; you may altogether avoid such business incubator.
Step4 – Check for the cost involved in getting an incubator. Find out if the cost includes other fees such as furnishings, equipments, parking or security.
Step5 – Understand the terms and conditions of the lease before signing on the lease contract such as number of years for business incubation, rental charges, rules regarding entry or exit.
Step 6 – while your business in the incubation period, make efforts to get a premises of your own because incubation is a temporary status.