Entrepreneurs have limited time, knowledge and resources.  They need to focus on what matters most to them and what they need to do better than their competitors, but the rest still needs to get done and that’s where incubators can be of great help. 

Research on incubators suggests the survival rate of incubated firms could be more than three times higher than non-incubated firms.  In fact, survival rates could be as different as more than 80 percent for the incubated startups as opposed to the overall survival rate of about 20 percent for all startups.  Research also suggests that incubated firms grow faster than their non-incubated counterparts.

Could this be partially due to the fact that only the most promising businesses are admitted into incubator programs?  Most incubators now provide a variety of value-added services ranging from help with business infrastructure and regulatory compliance to assistance with loans and networking with potential advisors and mentors.

What support services could your business use?  Do you just want a workspace, or do you also want mentoring and networking? Do you have enough management experience to do it all alone or would mentoring improve your potential for success?

If your venture helps the local economy and employment, you should consider incubation centers for easier access to local resources.  In considering incubation programs, make sure you know their policy on graduation and exit, the level of psychological support you expect and your openness to learning and exchange of knowledge with other incubating businesses.  Some incubators have a culture of assisting in and celebrating one another’s success.  Some incubators expect progress at set times and others go by milestones such as firm revenues.  You need to be clear about your own expectations in these areas and make sure the program meets your needs.

Overall, ongoing research suggests that firms in incubators have better access to resources.  They have a greater awareness of changes taking place in the marketplace as well as a greater incentive to innovate.  It is hard not to notice innovations taking place down the hall and therefore incubators definitely deserve your serious consideration if success is your goal.

Applications are now being accepted for 2014 incubation.  Call 931-456-4910 for an appointment to discuss your business goals and how incubation could increase your success.