Business incubators are groups and facilities that are established to nurture new startups during their early life. They usually provide office space, services, hands on management training, market support, and entrepreneurial experience. Their goal is to help create young businesses and facilitate their growth by providing them with necessary financial and technological support. “There are approximately 900 business incubators nationwide,” according to the National Business Incubation Association. The incubator generates revenue by charging monthly rental-access fees to the tenant companies and in some cases take equity.
Incubators provide numerous benefits to owners of startup businesses. Their office and manufacturing space is offered at manageable rates and their staff supplies advice and needed expertise in developing business areas as well. This is a great place to start for an entrepreneur who needs to focus more on the business plan, rather than the management of employees.
The incubator staff may clash with your company’s current staff, resulting in micromanaging issues and conflict. These hired employees/managers could also act as an observer for the overseeing party to ensure that your company is succeeding, thereby putting increasing pressure on you and your goals.