Early-stage startups face a slew of tough questions. Business incubators have all the answers you need.
- Where can we afford office space?
- Where should we look for funding?
- How can we win over investors?
- What kind of talent do we need right now?
- How can we support training?
But, some good news: business leaders at fledgling startups don’t have to grapple with these – and other – business questions alone. Instead, you should consider whether an incubator is a right fit for your businesses’ stage and goals and if so, expect to benefit from an incubator in several ways.
Business incubators support start-up by providing business advice, additional resources, industry and expert contacts, and even capital to support growth. Here, we look at 5 specific ways incubators can help startups.
- Incubators can invest in startups. Between product testing and developing, expanding office space, and paying resources, startups are often pressed to come up with the cash flow to keep things moving. Incubators, which can be funded by governments, established through universities, or launched by experienced entrepreneurs, can offer grants or exchange for equity to help keep things moving. While a reported 77% of startups lean on personal savings for their initial funds, its tough for most people to personally fund business as it grows.
- Incubators can connect startups and investors. In 2019, there were 7 million small businesses in the United States, which means you aren’t the only one trying to find time on an investor’s (or multiple investors’) calendar to pitch your business – and win funding. But an incubator can let you skip all that cold calling and leverage relationships in their network – typically with angel investors and venture capitalists, making smart introductions that make sense. In addition, incubators can help you refine your pitch and boost your chances of impressing investors. Fewer, more successful meetings are always a win for time-strapped entrepreneurs.
- Incubators can coach, mentor, and refine new startup leaders. Incubators are already home to experience entrepreneurs, who offer a wealth of experience (likely have tried and failed themselves in the past). Incubators should offer a host of coaching on business basics, your business plan, and your pitch. As an outside party, they can also offer an objective, and expert, view of your ideas and product, helping to refine it and eliminate any unnecessary features that may turn off investors or limit customers.
- Incubators can offer office space and shared resources. Incubators can take the work out of finding an office space – because they often provide them, and with that office space, a whole host of amenities and administrative support that can lift the burden off startups.
- Incubators promote focus. Remember all those business questions startups can struggle to answer? When an incubator solves the problem of office space and logistics, partners to give advice on the tough questions, and mentors a startup along the way, there are simply fewer distractions and interruptions to the core focus of the business – which frees the startup to grow more quickly than it would if leaders were constantly interrupted by battling logistics or delayed trying to sort out the right advice.
Ready to move beyond the early stages of your business? HEXA Ventures is ready to support you. As the premier technology ecosystem in the metroplex, we’re equipped to help propel your business toward your next goal. Tell us more about your needs at firstname.lastname@example.org and let’s get started today.