7 February, 2020
When a seed is planted, it needs proper nutrition, water, atmosphere and care for it to grow and flourish.
In times like heavy rain or wind, it needs to be sheltered so it does not wither with unpleasant situations. Likewise, when a startup is seeded it needs a place to grow, perform and flourish.
Initial years are the most critical years for any startup. One of the many things that they lack at this time is the experience and expertise required. As a result, a significant amount of startups hit rock bottom.
However, with a roadmap and guidance, this could be eliminated. Now, it is not always easy to find someone who would mentor early-stage startups and provide them with adequate resources. That is when startup incubators come into the play. According to the published research "Can Business Incubators Impact the Start-Up Success? India Perspective!"
The average mortality rate of Startups which are or have been enrolled in a Business Incubation Programme was found to be is lower (12%) compared to the mortality rate of non-incubated startups(75%).
This shows us that startup incubators can increase the life of fledgling businesses so that they can succeed. Now that we have had a gist of startup incubators, let us have an in-depth explanation of it.
What are Startup Incubators?
A startup incubator is an eco-system for young stage enterprises that comprises of a pool of people from regions of expertise. They help entrepreneurs, usually in the early stages, overcome some of the common hurdles which include providing office space, mentoring, networking, legal help, training, human resources, IT, etc.
However, for the longest time, there has been noise around startup incubators, making it confusing for entrepreneurs to maximize their help. Given the complex nature of startups, incubators understand their struggles and provide the right expertise. They are a team of experts who strive to solve common problems and help businesses grow.
Incubators provide a spread of services, from shared services to operational support for entrepreneurs, startups, and SMEs. It not only helps the entrepreneurs take their business off the ground but also be sustainable in the long run. Although there are many types of verticals which are supported by Startup Incubators, however, the key services which you can find with any of the startup incubators are,
1. Managed Office Space
2. Legal Support
3. CXO Services (Mentoring)
4. Administrative support (Hiring, payroll management, compliance assurance, etc.)
So, now that you know what incubators are, let us see how startups, SME's and entrepreneurs can use Business Incubators for driving growth.
How Do Incubators Benefit Startups?
Startup incubators help early-stage startups set their foot in this competitive world by providing them with various services at their disposal. These services include mentor network, consultation, shared spaces, etc. Let us see how our LaunchPad at Pannal helps startups, entrepreneurs, and SMEs.
The main reason why incubators are useful for startups is not only because they provide varied services but also because they get everything under one roof. Be it a robust mentor network or a workspace to utilize, startup incubators have all the resources at your disposal, all under one roof.
This makes it convenient for entrepreneurs to be less dependant on multiple sources and instead, focus on just one.
Flexible and Growth-oriented System:
With relatively low incremental costs, we help companies to scale. We provide specialized professional services needed in developing and growing your business. Not just this, the growth system facilitates startups to network with like-minded people. Because a great network is a fuel for any business.
With startup incubators, you get to meet people who are on the same journey as you or have been on the same road once.
With the already piling costs, we aim to not add to it, instead, minimize your costs through our shared services. With the shared model, overheads and operational costs get eliminated and you can benefit from the economies of scale.
Expertise and Experience:
The biggest challenge faced by startups is the lack of experience and expertise. With our seasoned professionals on board, we strive to support you in your journey. This provides startups with adequate information and knowledge for the smooth functioning of their business.
The best advice comes from the experts. Incubators help entrepreneurs leverage the power of their robust network and get assistance for their companies. This helps them acquire the industry knowledge that is practical and actionable. The mentor network also covers up for the management gap in expertise or knowledge.
Strong Leadership Support:
An effective team identifies the loopholes, and assist you as to how you can enhance the overall performance, productivity, commitment and behavior of resources. So this was about the startup incubators and how it helps entrepreneurs.
At Pannal, we understand the complexities involved and strive to provide your business with a solution tailored to your needs. Apart from this, you also get a collaborative environment for your startup to thrive.
If you need assistance, guidance and/or shared spaces for your company, know that we are only a call away!
Joshi, Manoj & Apoorva, Sharma & Shukla, Balvinder. (2015). Can Business Incubators Impact the Start-Up Success? India Perspective!. IST Journal of Business and Economics. 7. 10.2139/ssrn.2511944.