HOW TO FIND A BUSINESS
INCUBATOR TO JOIN
© Sherri
Eng
Business incubators are
low-cost options for new entrepreneurs to hatch their new
companies. An incubator, which is usually housed in a
warehouse or office complex setting, reduces a start-up
company's overhead costs by offering low rent and shared
support services.
STEPS:
1. Decide whether your
business is appropriate for an incubator. Anywhere from
10 to 40 small businesses might reside in one incubator,
most using office space of 1,000 square feet or less.
Most likely, a manufacturing business probably wouldn't
fit in an incubator.
2. Find an incubator that
suits your business. Some incubators cater to specific
industries such as software or environmental consulting,
for example.
3. See what other
businesses currently reside in the incubator. You may
want to take advantage of the accounting services company
that recently moved in. Or you may want to avoid a
company that could be a competitor.
4. Ask what is included
in the tenant fees. In some cases, this includes office
furnishings, janitorial services, shared use of the fax
and copy machines, and a parking space.
5. Make sure you know the
terms of the lease. Many incubators expect fledgling
businesses to move out after two or three
years.
TIPS:
Take advantage of the
incubator setting in which you'll be surrounded by other
budding entrepreneurs. Use them as sounding
boards.
Plan well in advance for
your departure from the incubator. Have enough funds set
aside for the higher rent you will need to pay and the
office equipment you'll need to buy, once you
leave.
To find the nearest
incubator, call your local Chamber of Commerce or Small
Business Administration office.
WARNINGS:
Remember that, just as a
chick eventually leaves the nest, so will you. Don't
become too dependant on being in the incubator.
