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What is and how a business incubator works

March 8, 2020

Incubators are excellent tools to boost the birth of companies, as they offer the necessary assistance to grow.

Incubators are excellent tools to boost the birth of companies, as they provide the necessary assistance to grow. Learn how they work and take advantage of them to undertake.

When making a business plan it is not enough to have an idea; It is necessary to structure it and create a plan that projects the development and execution of the venture. However, this task is very complex, which causes many novice entrepreneurs to sink in the attempt.

What is and how a business incubator worksWhat is and how a business incubator works

But it is no reason to be alarmed; for the most inexperienced (or for all entrepreneurs) there is an encouraging alternative: business incubators, a fundamental tool to boost the birth of new companies and whose use has already become popular in many parts of the world.

These centers are responsible for evaluating the technical , financial and market viability of a plan, providing legal advice services, developing marketing and sales plans and even providing physical space, equipment, logistics and access to financing and seed capital.

The assistance that an incubator provides goes through three stages. In the first place is the pre-incubation, during which the entrepreneur is given an orientation for the development of his company. Then comes the incubation, the time in which the implementation, operation and development of the business and all the processes are reviewed and monitored. Finally, post-incubation is applied after the business has been launched, in order to continually improve it.

This is the process to follow to access an incubator assistance plan:

1. Conceive and translate on paper a business idea.

2. Go to an incubator.

3. Interview with the representative of the same.

4. Clarify the idea according to the interview.

5. Prepare a summary of objectives and characteristics of the future company.

6. Feedback process between the employer and the advisor to delineate the business plan (this process takes one to two weeks).

7. Evaluation before a project selection committee.

8. Analysis of the project by the committee.

9. If the project is approved, enter an incubation process . If the project is rejected, adjustments are suggested and the summary is returned.

10. In the incubation process, advice is received on administrative, legal, accounting, financial, design and image, market and marketing strategies. In case of contemplating the export of products, the incubator also provides guidance in aspects of international trade.

11. At the conclusion of the business plan, the company usually begins operations and receives advice for 12 more months.

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