Every successful incubator program is built on the foundation of services and programs which promote a client’s likelihood for successful growth and development. Essential programs and services for a client’s success include: skill-specific workshops, leadership workshops, employee training, etc. Offering these value-added services is vital in order for the client to become independent and presents an easier path to exit opportunities when the proper foundation is built.
As indicated by the findings of the feasibility study and the national Incubating Success study, services that should be provided include:
Direct business development assistance
Accounting/financial services
General legal services
Marketing assistance
Networking opportunities
Educational programs
All incubator programs and services will be offered to clients as part of their monthly lease agreement. Special programs, in addition to this, may be offered for a per-unit fee.
A more thorough analysis of several of the programs and services that should be available follows. The different areas of focus include direct business development assistance, professional network and relationship support, educational programs, facility-based services, and business assistance providers.
Direct Business Development Assistance
From the time of entry until eventual graduation, business development assistance will provide the support needed to sustain an incubator client. Coordination and oversight will be headed primarily by the executive director. In order to find programs which are best tailored to the client’s specific business, an evaluation will be made and recommendations will be based on the initial evaluation.
Business Evaluation – beginning with an in depth review of the components within the business plan, client businesses will be assessed in a number of areas. Following the initial evaluation will be a survey in which the businesses self-evaluate their plan and develop an approach to improve an area within their business. Using this information, the executive director will make a recommendation of the programs and services best suited for the client.
Professional Network and Relationship Support
Developing connections within a community is difficult for every incubator, especially with clients in small, emerging businesses. Therefore, the duty falls to the business incubator’s staff to help establish networking and build relationships within the community.
Mentor Program – Each client should have access to volunteer mentors and business counselors taken from within the communities. These mentors should be experienced professionals in varied industry sectors who have either started their own business or have had multiple years of experience in the given sector. One of the mentors’ many roles and functions will be to keep track of company development and suggest areas of improvement. The executive director should oversee the mentor process with regular meetings and resource suggestions.
Effective Professional Networking – Links to strategic partners, angel investors, and professional networks are essential to the success of a business incubator. The executive director should organize networking events and facilitate relationship building among incubator clients.
Venture Capital and Funding Networking – Acquiring enough capital to run a successful company is a challenge facing all new businesses. Potential ways to acquire this capital are through angel investors, private equity investors, banks, and through private philanthropy. This can be difficult unless the right connections are made and effective professional communication is maintained. The executive director can help foster these relationships through focused training and networking components.
Internship Network – One way to strengthen an incubator program is to bring in interns who can assist client businesses or incubator staff. Interns might be recruited from the regional pool of recent college graduates or upper level students enrolled in college programs. The executive director should develop a process to identify, screen, and recruit interns.
Educational Programs
Educational training may include various workshops and seminars. The incubator staff may develop and administer sessions covering business basics, marketing strategies, networking tips, advice on pursuing investors, internship programs, and a multitude of other topics. The incubator may offer these training programs in traditional classroom settings or online. Some incubator programming can begin prior to the official opening to serve as a marketing tool for attracting clients.
Faculty from the business, science, technology, and manufacturing departments of BCO may be willing to volunteer as mentors and advisors to the incubator’s clients. BCO offers many certificate programs for those already in the workforce, such as clerical bookkeeping, office, and IT support, which help entrepreneurs and businesses continue their education and professional development. Additionally, BCO’s Business & Corporate Services provides non-traditional services in Mid-Michigan, which includes professional development and Michigan Works Employment services. Baker College of Owosso’s Business & Corporate Services also provides specific training to manufacturers, which helps eligible companies assess training needs, prepare and submit the required applications, and coordinate all instructional sessions.2
2
Business and Operating Plan
Facility-Based Services
Facility-based services depend largely on the incubator building’s amenities. These include, but are not limited to:
Resource libraries
Shared conference rooms
Shared office equipment (photocopiers, fax machine, printers, scanners, etc.)
Shared specialized equipment (manufacturing tools, laboratories, etc.)
Reception area and receptionist to greet visitors
Mailroom support
Internet and network access
In addition to the individual facility’s amenities, academic-affiliated incubators provide a whole separate set of facilities. BCO can provide the incubator with laboratories, libraries, computer systems, technology expertise, and subject-matter experts among the faculty. Academic-affiliated incubators also provide students with internship or part-time job opportunities in which they can apply their knowledge to the real world, which would be a “win-win” situation for both BCO students and the incubator clients.
Professional Service Providers (PSPs)
The NBIA recognizes the need to “prioritize management time to place the greatest emphasis on client assistance, including proactive advising and guidance that results in company success and wealth creation” as a best practice.
Part of the incubator manager’s greatest assistance to clients is to find, recruit, and manage a strong service provider network that gives clients access to high-level (and usually reduced-rate) business experts. This type of expertise might not be available on the incubator staff, and getting third-party expertise may not be affordable for early-stage companies. The incubator manager should be able to negotiate pro-bono or reduced rates with service providers, helping clients conserve crucial capital. Incubator service provider networks include accountants, lawyers, venture capitalists, scientific experts, information technology experts, marketing specialists, etc. These business assistance providers should have relevant expertise, be readily available, and have experience working with young companies. These service providers should be chosen carefully through interviews and regular evaluations via client surveys, and focus groups should be conducted to ensure relevancy and effectiveness.