Small business incubators can:
- Lower overhead costs.
- Create unique opportunities for networking.
- Increase the likelihood of small business survival.
Action Steps
The best contacts and resources to help you get it done
Ask, "Is incubation right for me?"
Incubators aren't appropriate for every business. Because they typically house several businesses under one modestly-sized roof, they won't likely meet the needs, for instance, of a manufacturing- or service-based business.I recommend: Learn all about business incubation from the National Business Incubator Association (NBIA), which offers resources for defining and evaluating the concept of business incubation.
Find the right match
Choosing the right incubator is critical. Some cater to specific industries, with a niche focus such as food, software or the arts. Do your homework in order to find the best fit for your company.I recommend: Find an incubator near you by searching NBIA's member database, contacting state incubator associations or calling your local chamber of commerce.
Research incubator offerings
Business incubators offer their members management guidance or consulting services and typically provide access to affordable office space as well as shared office equipment, support services and financial mentoring. Choose an incubator that offers the services you need most.I recommend: Use this "Efficiency Evaluation Checklist for Business Incubators" to help you decide if an incubator's services match your business needs.
Evaluate fee structures
Some incubators offer free space and services in exchange for equity in your business. Others, however, charge tenant fees that include everything from furniture and maintenance to parking and supplies.I recommend: Find out what you can expect to pay for various incubation services by reviewing the service fees charged by a sampling of incubators, such as The Women's Technology Cluster in San Francisco.
Tips & Tactics
Helpful advice for making the most of this Guide
- Before applying for incubator admission, do your research. Some incubators only accept clients with certain qualifications — a fully developed business plan, for example — so make sure you fit the bill before submitting an application.
- Review the terms of your incubator lease. Some incubators require you to move out within two or three years, regardless of your progress.
- Research businesses that currently belong to your prospective incubator. Many will be complementary though some may be competitive; choose your neighbors wisely.
- An incubator should be used as a launching pad for your business. Have an exit plan in place for the day you move out on your own.
the Small Business Incubators page at Business.com
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