Follow three tips to help you figure out what is best for you.
5 min read
The opinions of the employees of You are personal.
The incubation model that has been in place in Mexico for more than 10 years does not seem to have changed significantly in some of the institutions that are promoting startups today. Business incubators have enabled entrepreneurs to develop, mature and connect that would otherwise be impossible and, in the worst case, lead to failure. by numbers from Small Business Trends, 90% of new startups fail or die and those with the highest death rate are the information technology, construction, and manufacturing industries. In the particular case of Mexico, according to the Failure Institute 75% of businesses die within two years, generally because they don’t know how to run the business.
Supporting a startup incubator was so crucial that by 2018 the National Institute recognized around 70 highly effective incubators that it used to support various startups specializing in projects with a certain level of innovation that were disruptive, technological, scalable and replicable, whatever Promised to affect thousands of people.
However, the previous process for developing their model is not always the most successful for companies. And the fact is that working with a pool of companies in the same process that do not necessarily have the same entrepreneur profile or maturity, industry, knowledge, or needs may not produce the expected results for all. If we add that the incubation model has remained the same for many for more than ten years; The fact that many incubators have disappeared because they only survived because of the availability of public resources that no longer exist, and that the entrepreneur sometimes does not benefit that much, allows one to understand that the incubation model that we at least know in Mexico is one has great opportunity to develop and improve in favor of entrepreneurship.
As a business owner, you should know that when you are in the early stages and looking for an incubation process there are certain recommendations that you cannot ignore. At G2 Consultores we do the following:
1. Don’t always start an incubation process with others Startups It is the best decision, every startup has its specific needs, its level of maturity. When a company presents its idea or project, it is obvious that the project’s shortcomings are unique. We therefore recommend that you join an incubation model that works in a personalized way, is adapted to your time and needs, and preferably does not stop your activities for vacation periods as it will also stop your process.
If you think you need any mentoring or methodology imparted in this process, go along, otherwise don’t waste time and focus on the real and specific needs of your startup.
2. There are incubators that will acquire a percentage of your business. Be very careful with this. This doesn’t mean it’s bad. However, be careful about the percentage that you will be giving up, as this can create complications in the future when trying to raise capital. Investors are interested in the startup being in the hands of the founders and not third parties at an early stage. Do not allow an incubator to become a charter member out of ignorance in order to make decisions that are not in your company’s best interests. If you do, analyze the effects and find that the benefits are worth the same as what you are about to give up.
3. Do you know the weaknesses and strengths of your company through an expert, through a diagnosis he knows how to lead you to the weaknesses and where you have to redouble your efforts. You may not need an incubation process because you already have a product developed, but you need a commercial strategy that will allow you to understand and reach your market. As mentioned earlier, the business needs are unique. So work on it and take your business to the next step.