One unique sort of mentorship that’s helpful for entrepreneurs is incubators. What is an incubator? Is incubator mentorship right for you? Let’s take a look.
An business incubator helps accelerating the growth and success of startup and early stage companies. Typically, the incubator will provide funding and take stake in the company.
Once you’re within the incubator program, you will have access to their facilities and network. You’ll be part of a shared office space free of charge and cash in of their in house legal and accounting services. You’ll start your company at an corresponding time with a whole group of other entrepreneurs.
This helps create a way of solidarity, of taking over an enormous task together. In addition to access with the first mentor, you’ll usually have access to an entire range of other successful individuals. Incubators will try to engage other successful entrepreneurs as mentors or speakers. They might also bring in alumni of the program to speak about their successes and failures.
The Downsides to Working with an Incubator
There are a couple of downsides to working with an incubator that you simply got to remember of.
First of all, they’re very industry focused. The majority of incubators specialise in the tech industry; though there also are incubators for green tech, biotech and other industries. Most incubators are looking for quick equity cash outs. If you are looking to create up your company for the end of the day , going with an incubator won’t be your best bet.
Niche Business Model
Incubators work under a very specific business model. Generally they fund a set of companies, while expecting an honest portion of them to not succeed. The ones who succeed need to make revenues to recover the investments and the overhead costs from the incubators. The Niche model gives access to experts in every realm of business development, from incorporation to eventually selling your company.
If you don’t want to sell or if you don’t want to run a hyper-accelerated growth company however, then a start-up accelerator might not be your cup of tea. Make sure you understand what you’re stepping into before you dive into the planet of incubators.