A startup incubator offers help and guidance to various startups. Usually startups fail because of no guidance. This is where incubators come into the picture. From developing the idea to developing an entire company, startup incubators have proved beneficial to startups worldwide.
Startup incubators can be non-profit organizations as well as private companies. Both can offer incubation to budding startups in the industry. Incubating companies are usually affiliated to universities and colleges. Furthermore, this helps them know and fund the innovative ideas of the youth.
Startups have benefitted with the idea of incubators in the past few years. Since the increase in competition in every sector many innovative startups have failed to succeed. Incubation gives a certain setup of benefits to give a good start your idea.
Let’s go through a few benefits of having a startup incubator for your startup idea.
Benefits of having a Startup Incubator
A private office space is very essential for a business to go running. A co-working space or a private space helps keep professionalism intact. Moreover, when each one works in an office space the results come out better.
There is more brain storming when working together and not from home. Along with this, team work and team spirit help bring out better results for the company.
Funding and Investment
Undoubtedly, funding is the main reason for startups to think about incubation. Many startup ideas do not flourish due to the shortage of investment. Without a doubt, startup incubators will help provide you the necessary funding.
Nevertheless, startup incubators can either fund your idea themselves or find you a good investor who can help your startup grow. Moreover, this is how incubators work.
Startup incubators cut down the expenses to about 40-50% of the actual rate. They let you open your concept-driven offices with less or no charges for the internet. Furthermore, they help you pitch to investors, partners or vendors that will help your business grow.
Focus on core business
When all the basic necessities are of a startup are fulfilled than a team can efficiently work towards the goals of their business. It gives the startups the apt time to focus on their work. They can evolve, test and work to make the best version of their work.
Public Relations and Marketing Help
Another perks a startup gets is the impeccable marketing from the incubator. They help you establish a trusted public presence. Marketing convinces people to try something a startup offers.
The better the marketing and PR, the better the sales can go. Unquestionably, this is one of the best reasons to consult a startup incubator for your budding company.
Working with other startups
A startup incubator works with a few or many upcoming startups at the same time. They know the common mistakes and blunders startups make. Indeed they can help you get out of that.
Along with that, you learn a lot from the other startups working while simultaneously with other innovative ideas and startups.
Without a doubt, there is immense support from each end by the startup incubators. Since they know all the problems beforehand they also have solutions to them. This will save time and money for the startup.
Having a guide and a mentor through your business is necessary from saving you from making unwanted mistakes or blunders. Incubators pass support to keep your business running and intact.
Study and analysis show that startup that consult startup incubators have the more possibility of succeeding. The amenities and support given by incubators has a huge effect on the success rate of startups.
More and more startups are inclining towards hiring an incubator for their idea. Startup incubators are the next big thing in the industry.
What is Startup Accelerator?
A startup accelerator is quite similar to a startup incubator with a few differences. Both the concepts work on bringing startups into in the industry with the right guidance and support.
What is the difference between Startup Incubator and Accelerator?
An accelerator works on accelerating an already existing startup whereas an incubator helps start a startup from scratch. Moreover, an incubator is inclined towards innovation while accelerator focuses on scaling the business to new heights.
Accelerator works on a structure based on set time frame. Certain companies can work under their guidance to a few weeks or months and then set up their own individual company.
Whereas, an incubator helps you fix your startup idea. Indeed, also helps you hire people to work with you. Incubator works with startups from the scratch to the time they succeed to a certain level.
These are a few differences of startup accelerator and incubator.
Which is a better option?
Definitely this depends upon your startup idea and industry. You choose what is best for your startup. If you have already started working on your idea than maybe you can opt for an accelerator. But in case you have just picked the idea of starting a new startup than an incubator may be of more help to you.
Everything depends upon what you decide for your business or startup. One can decide what is best for your startup.
You have read through all the important points of a startup incubator. Also, have attained an insight about startup accelerators. I hope all this information provided helps you choose best for your startup.
Get thinking! Keep the new startup ideas coming in. All the best!