Are you ready for this? According to National Business Capital & Services, around 90% of all startup companies fail. Yep, nine out of ten new businesses don’t make it. When you look at a number like that, you may be tempted not even to begin. But what can make the difference between success and failure are business incubation programs?
The business incubator industry helps with job creation, the local economy and turns good ideas into successful businesses. But what’s the business incubator process, and how can it help you beat the odds?
What is business incubation?
You have a good idea but don’t know what to do with it. This is where business incubators can make a real difference. The concept of business incubation identifies the potential of new startups in the early stages and puts into place fundamental mechanisms for success. These “mechanisms” include strategic planning, learning environment, and financial management.
All business incubation programs have the end goal of ensuring the long-term survival and growth of the company. They help bring resources and support to develop products and services for those who otherwise wouldn’t have access to these benefits.
What is the business incubator process?
A successful incubator has three distinct stages in the process. The initial step is to begin the admission process and includes specific steps.
When applying to a business incubator, look closely at the requirements and what you need to submit. You may need to have a business plan in place and a well-developed idea to compete.
After submitting your application, you may have to interview with the incubator manager. So, being prepared for the interview is key to acceptance. Try to find out what they are looking for ahead of time and be prepared to prove why you’re the best fit for the incubator.
Depending on the incubator admission process, you may have to wait a few weeks before you hear the answer. In the meantime, keep working on your business operations and strategy. This way, you’re even more prepared when you’re accepted.
What happens once you start?
This stage is the heart of the incubator process and depends on the type of incubator and end goals. Incubator participants in the ShiftPixy Labs incubator go through a series of challenges and a carefully crafted curriculum. Plus, they gain access to mentors and opportunities to network.
Network with other startups
One of the hallmarks of Incubator development is networking with other startups. Cohort-based incubators pool like-minded entrepreneurs in a group to move through the process together.
Without the incubator, startups may find it hard to create sustainable business networks that can help get the business off the ground and offer support in the years after the incubation ends.
Start to Learn and Grow
In a sense, an incubator provides business assistance and crucial educational content that inspires companies to learn and grow. It’s like getting a business masters without having to pay the high tuition.
When you participate in an incubator, you have more opportunities to meet an angel investor or secure capital financing. Business incubators understand that startups need access to funds and help candidates find investors or secure loans.
At the end of the program, incubated companies go through a demo day. Prospective investors learn more about the incubated concepts and decide whether the startup is worthy of investment. It’s the startup’s chance to show viability and proof of idea.
What happens once the incubation ends?
After completing key challenges successfully, the startup is now ready to launch the company. Financing and a solid business plan are in place.
What are the benefits of business incubation?
You may have an idea of the benefits by now, but it’s worth mentioning them again. A successful business incubator can provide the following advantages:
- Complimentary office space
- Access to mentors and expert advice
- Help with product development
- Ability to network with similar startups
- Access to different finance options
- Accelerated time frame to ensure success
- Help to get the concept running
Having the benefit of being in an incubator is highly desirable for any starting business. Strategic planning and business management support give entrepreneurs and restaurateurs the necessary edge for success.
Is a business incubator right for me?
The business incubation model has been around for years. But in the last few years has had a surge in popularity. Knowing if it’s right for you may depend on the incubation model and business goals. In the incubation industry, there are different types of incubators, including:
- technology incubators
- startup incubators
- corporate incubators
- kitchen incubators
- virtual incubators
- academic incubators
The above examples are by no means finite. You can find any industry-specific incubator to fit your company’s product or goals. But some incubators are better than others.
Apply to ShiftyPixy Labs Ghost Kitchen Incubator Program Today
ShiftPixy takes the kitchen incubator concept to a whole new level. The groundbreaking new approach takes aspiring restaurant operators from their early ideas to fruition. All of which culminate into a ghost kitchen setup.
Ghost kitchens were taking off before the pandemic, but the number of people ordering food online for delivery has soared since then. People no longer need to visit a restaurant to experience yummy cuisine. The trend towards delivery is only going to increase.
What matters is the quality and how fast it’s delivered. Ghost kitchens have no storefront, work from a commercial kitchen, and don’t rely on foot traffic. Locations don’t have to be trendy or in an up-and-coming neighborhood. Instead, ghost kitchens harness the power of technology and native delivery to build an empire. ShiftPixy Labs shows restaurateurs how to do it with style.
The first step is to download the ShiftPixy Labs app and start the application process. Right now, we’re offering incubators for restaurant folk, but as we grow, so will the types of businesses we add to our incubator programs. Now is the moment to make your dreams a reality. If not now, when?