Business incubation programs are often sponsored by privatecompanies or municipal entities and public institutions, such ascolleges and universities. Their goal is to help create and growyoung businesses by providing them with necessary support andfinancial and technical services. There are approximately 900business incubators nationwide, according to the National BusinessIncubation Association.
Incubators provide numerous benefits to owners of startupbusinesses. Their office and manufacturing space is offered atbelow-market rates, and their staff supplies advice and much-neededexpertise in developing business and marketing plans as well ashelping to fund fledgling businesses. Companies typically spend anaverage of two years in a business incubator, during which timethey often share telephone, secretarial office, and productionequipment expenses with other startup companies, in an effort toreduce everyone’s overhead and operational costs.
Not all business incubators are alike, however, so if you have aspecialized idea for a business, try to find the incubator thatbest suits your requirements. If you’re interested in finding anincubator in your state, visit the National Business Incubation Association’swebsite. Or get in touch with your local economic developmentagency, located in the phone book under the listing for your stategovernment. You can also call the information offices of your localcolleges and universities to see whether they have any businessincubation programs.
If an incubation program seems interesting to you, be preparedto submit a fleshed-out business plan. The plan will be reviewed bya screening committee to determine whether or not you meet thecriteria for admission. Incubators carefully screen potentialbusinesses because their space, equipment, and finances arelimited, and they want to be sure they’re choosing to nurturebusinesses with the best possible chance for success.
