The biggest obstacle that entrepreneurs face is to rise funding for their startups. Even when they have the capital to start, their lack of experience is something they cannot overcome. Finding the right incubator will swing the odds in favor of the entrepreneurs as they will receive funding and guidance from the top minds in the industry.
What do Incubators do?
Incubators help entrepreneurs develop their business either by funding them or by providing them other resources such as equipment, facility to develop their prototype or even expert guidance. The nature of the incubator varies as some of them are community based non-profit organizations helping budding entrepreneurs realize their dreams and create job opportunities for that community. Others are run by successful organizations or business men looking to invest in new technology and talent. They provide all the support that is needed in the beginning stages of the startup for a portion of the profits.
What to expect from an Incubator?
Some Incubators provide you the office space and the equipment required for a fixed monthly fee. This is perfect for entrepreneurs whose business revolves around interacting with people. Incubators are also known to conduct one on one class with industry experts, which is a paid service. If you are enrolling for this you need to make sure that this service is not merely a text book course rather, one that encompasses the experience of both the incubator and the expert.
Understand the Terms and Conditions clearly
Be cautious before giving away equity shares to the incubator. Thoroughly understand the value an incubator adds to your Organization. The most critical point is the intellectual property right, it is in your discretion and if you feel pressured at any point, know that it is time to bail out. Read through all the agreement carefully before signing it and if you have a personnel attorney ask him to check it before you sign it.
Check for Credentials
It is the duty of the entrepreneur to check whether the Incubator can deliver on their promises. The Incubator’s leadership should be able to raise enough money for you through venture capitalists and angel investors. This can be verified by enquiring about the startups the incubator worked with prior to you. The incubator should have the right network for your startup to become successful.
This is a Guest post by Girish Kumar A M, who is Serial Entrepreneur and Project Manager at www.starting-business.in which provides comprehensive details on starting your own business and running it successfully.