How Do Digital Startup Incubator Works And How They Help Startups?
In recent years, there has been a drastic increase in the number of people creating and starting businesses. Along with this, the number of startup incubators has also increased. But what exactly is a startup incubator? How does it work? And what benefits can it provide your startup? Let’s find out.
What are startup incubators?
A startup incubator is a set of programs created and designed to kick startup businesses and make them successful. Incubators help passionate startup owners face the common problems associated with running a startup and solve them properly by providing workspace, guidance, training and much more. A business incubator program's main objective is to help entrepreneurs enhance their business by helping them through the tough initial days of the business.
Business Incubators are non-profit organizations in nature that are run by the public as well as private parties. Startup incubators are linked with universities, business schools and other institutions that allow their students and alumni to participate in such programs. But other incubators are formed by government departments, different organizations, Civic groups and previous successful business owners.
Startup incubators are not limited to one particular industry. The focus of business Incubators depends on the region and what is famous there. For example, in a country where the fashion industry is at its peak, the number of fashion startup incubators would be greater. You can also find all-purpose startup incubators that accommodate all sorts of startups regardless of the industry.
A startup Incubator's concept dates back to 1959 when the first startup incubator, the Batavia Industrial Center, was created. Its objective was to solve the issue of high unemployment rates during that time.
What services do startup incubators provide?
The list is very long, but here are some of the most common services provided by a business Incubator program.
- Solve basic business problems
- Marketing guidance
- Excellent internet access
- Accounting management help
- Bank loan and loan funds facilities
- Help with enhancing presentation skills.
- Access to educational resources and materials
- Networking opportunity with strategic resources
- Access to investors
- Training programs
- Learn business etiquettes
- Access to mentors
- Access to data on the management team
- Assistance in technology commercialization
- Legal counsel and property management
How long do Startup incubators take?
The difference between a startup Incubators and accelerators is that a startup incubator can be customized according to the specific needs and is more flexible. The virtual business incubator model is like a residency with additional benefits of mentors, guidance and educational programs. This is why the business incubation process can differ according to your company’s requirements. You can stay a part of an Incubator for as long as it takes for your business to grow and become stable.
What’s the application procedure for Digital startup Incubator?
To sign up for a business Incubator program, you will have to apply and then wait for the acceptance letter. Every startup incubator has a separate application process that you must follow. But you will face less competition here than at startup accelerators. The application process consists of a few steps, including:
You have to start by filling out an application form and write down the answers to the questions about yourself and your business. Some of the incubator forms may ask for your business plan and details about your previous business activities.
You must pass a short interview specially designed for the interview to understand and learn about your experience. It will probably consist of a small video call.
3) Wait for their reply
The period till you get a reply may vary from individual to individual. Don't worry; the time is very short, just a few weeks. After which, you either receive a rejection or acceptance decision. You can also apply for financial aid once you get accepted.
Benefits of a startup incubator
There are many benefits of a digital startup incubator for a growing business. Here are some of them.
1) You learn a lot
Startup incubators provide you with facilities and services such as access to a network of coaches, mentors and educational software that lead to business success. The mentors may be successful business owners, accountants, lawyers, researchers, HR professionals and entrepreneurs.
2) No more rent
At an incubator, you can find a co-working space at a low price. This saves you from rent costs, and you can focus on growing your business.
3) Large networking
Once at a digital startup incubator, you might have to share your office workspace with a group of other innovators. This allows you to make contacts, interact and use the shared resources.
With the new business startup craze, the number of startup incubators based on the virtual business incubator model has also increased. The benefits of a startup Incubator are of course, very vast and opting for an incubator is a great decision for those who wish to grow their business.