5 ways to succeed as an Incubatee
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A business incubator helps startup incubatees jump start their performance. However it is important for them to do their home work well before moving in. Unless a start-up doesn’t have a strong team, it is unlikely that its business model will get more refined and feasible towards the end of the incubation programme.
During the course of the programme, a start-up may get more people in its team but the onus lies on the founding team to translate the business idea into a workable model.
1) Pitch Perfect
One key aspect to join a business incubator is how well can you pitch your business idea and how does it differ from similar existing companies. The incubator wants start-ups that are ready to face the competition. Joining an incubator also establishes the start-up’s business model in order to raise the first round of funding.
2) Talk to Former Incubatees
It is always better to consult few alumni entrepreneurs of the incubator for their experience during the incubation programme and what benefits and challenges they came across while at the incubator. It can be vital for new companies joining the incubator to balance the pros and cons while making the best out of it.
3) Do Your Homework
Incubators often differ in terms of services and support that they provide for entrepreneurs. A crucial area to delve on before joining a business incubator is to check that the experts present at the incubator have significant experience that can add value to your business. Moreover, startups are often required to relocate to incubator’s place during the duration of the incubation programme. Hence, it is important for them to decide whether to operate from the same city or join the incubator.
4) Put Together a Strong Team
One of the basic criteria for start-ups to join incubator is to have a strong team of founders. Unless a start-up doesn’t have a strong team, it is unlikely that its business model will get more refined and feasible towards the end of the incubation programme. During the course of the programme, a start-up may get more people in its team but the onus lies on the founding team to translate the business idea into a workable model.
5) Find Your Right Value
Similar to other traditional investors, incubators also seek a part of your company in terms of equity stake, typically around 7-10 per cent in exchange for the money, mentorship and handholding they provide. Entrepreneurs must look at the value to be derived from the incubator cover up the equity share given to the incubator.