You do not need to wait for your first customer to come through the door to face the challenges of owning your first company. The Havard Business School released a study suggesting that first-time businesses carries a steep learning curve: first-time entrepreneurs have only an eighteen percent success rate. By investing resources in professional counseling and consulting, businesses can overcome the odds. How do business incubators help companies to balance the tightrope act of success?
They Expand Your Company
Through support services, advice, contact establishment, and client screening, an incubator does a great deal of the work on behalf companies that do not have the time, resources or manpower to do it themselves. The results speak for themselves: 87 percent of companies that have utilized business incubation services stay in business, according to the National Business Incubation Association.
They Benefit Start-Ups
The process of an incubation may be compared to that of a boot camp: professional incubators come in to your company and study it from head to toe. They determine the successes of your products or services, the main areas of growth, and aspects of production that could stand to be improve before you ever collect a dime from a customer.
They Work Until The Job Is Done
Some consultations may last only a few days, others last longer. The Philadelphia Science Center reports a business in the incubation process usually works on their premises for two years. By the conclusion of the consultation, a company will have the tools needed to stand on its own two feet without further assistance.
They Take The Best
Entrepreneur notes that access to capital, as well as legal or financial services, makes incubators great allies, but also makes them choosy about those they accept. Get your books and records in order ahead of time to explain your organization’s finances and economic history. Use an Intuit Paycheck Calendar to determine how much you pay employees and how much tax goes to the government. This paycheck calendar can be helpful after incubation as well, whenever you need to determine the added value of hiring new employees or giving raises compared to productivity output.
They Produce Results
The numbers on business incubation speak for themselves. The National Business Incubation Association reports 1,000 incubators operating in North America, which have helped 27,000 companies annually, adds up to an output of no less than $17 billion dollars from one hundred thousand employees. A start-up company or first-time entrepreneur may not be able to afford even a single setback in their operations, let alone suffer multiple issues or inefficiencies. Professional incubation mentorship lets any company get a head start when it opens its doors to customers, so it can avoid the pitfalls that plague the average new business.
If you are an Ontario entrepreneur seeking a technology incubator to help you succeed, please apply for RIC Centre’s new incubator spaces.