How do Startup Incubators help Build Startups? — TheCodeWork
Well, why are we talking about startup incubators? Let’s walk you through it!
“These days we hear all around us, startup, startup, startup. It is true that this is the era of startups and it is also true that in the field of startups, in a way, India is leading the world,” — PM Narendra Modi, India
As PM Modi has rightly said, this is the era of startups. And India is leading the way. With more than 60,000 startups and over 100 unicorns, India is now home to the world’s third-largest startup ecosystem! Impressive, isn’t it?
But do you know, there’s an unsung hero behind the success of many of these startups. And that hero is- drumroll……
A business incubator!
If you’re a seasoned entrepreneur, you’re probably already familiar with what a business incubator does. If not, let me give a quick overview.
Business incubators play a key role in transforming ideas so that they become scalable products/services. Incubators nurture startups by providing all the necessary ingredients for a startup to “hatch”.
In India, the startup world is cut-throat and competition is steep. Here, an incubator can make the difference between success and simply fizzling out. That is why TheCodeWork brings to you-India’s first ever zero equity Startup Ecosystem! Give wings to your business ideas by getting access to all startup-related resources under one roof.
And now, let me walk you through the deets of what exactly a business incubator is, and what it does.
Hop on to walk through this exciting journey!
What are Startup Incubators?
Startup incubators are programs that are specially designed to support young startups and help them grow. An incubator’s primary function is to make ideas happen.
Lately, business incubators have become the talk of the town. Many well-known startups got their foothold with the help of incubators. In fact, successful startups like Uber, Dropbox, and AirBnB too started out from incubators.
That’s quite a good track record, don’t you think?
Startup incubators perform many roles. They can provide:
- Assistance on tech/non-tech front
- Contacts, and
- Fundraising opportunities
If you’re a business founder trying to swim through the murky waters of entrepreneurship, an incubator is your raft.
Exactly what TheCodeWork’s zero equity Startup Ecosystem is doing!
Difference between Startup Incubators and Accelerator
Now, you may ask, what’s the difference between a business incubator and a startup accelerator? I am sure you have heard both of these terms and are confused between the two!
And I don’t blame you at all. They’ve become synonymous in the domain of business. But there is a slight difference between the two in terms of how (and when) they come into play.
Both incubators and accelerators provide support to budding businesses. However, incubators specialize in early-stage startups that are still in the phase of product development.
Startup accelerators, on the other hand, tend to focus more on accelerating the growth of existing businesses.
Usually, businesses that have already dispatched a minimum viable product and have a proven product-market fit.
How can a Business Incubator help your startup?
Are you looking to start your own business or test out new markets? Business incubators can help you do both while removing many of the risks that come with such a venture.
Listed below are some of the reasons why you might want to consider partnering with an incubator for your startup enterprise.
1. Networking opportunities
I’m sure you know this already, but growing a business is all about knowing the right people in it. You have to forge relationships with other professionals, business leaders, and entrepreneurs in the industry.
And so, cue networking. Networking is the gateway to both learning more about your industry and long-term business growth.
Here are all the ways networking will help your startup:
- Get new business leads
- Recognize best practices and benchmarks in your industry
- Keep up with new trends in your field
- Build confidence in yourself and your company
Tell me, doesn’t this sound awesome?
However, there’s a catch. If you are a first-time business owner, it can be difficult to build a great network. But worry not! Because this is where a business incubator comes in.
With their pre-established connections with other leaders and entrepreneurs, incubators are the ideal place to start your networking journey. When you join an incubator, you’ll have easy access to numerous companies and experts. So you can network conveniently as you go about your workday.
Easy-peasy, isn’t it?
Looking for networking opportunities? You have come to the right place! Build your business network with TheCodeWork’s Startup Ecosystem!
2. Mentorship and exposure to industry leaders
Want to know the secret sauce for successful entrepreneurship? It is mentorship!
No, really! There’s data to prove it. According to a Stanford University executive coaching survey, 80% of CEOs have received some form of mentorship. According to another study, 93% of entrepreneurs believe that mentorship is critical to their success.
I mean, the benefits of mentorship are quite obvious, right? A mentor is someone who has been there, done that and learned from it. And you can definitely profit from their knowledge.
The right mentor will
- Give you advice, guidance, and support on your new venture
- Act as a sounding board for all your brilliant (and some not-so-brilliant) ideas
- Share their experience and knowledge of the industry
- Tell you how to avoid common business mistakes
- Help you as you work on your problem-solving skills
As I said, there are a lot of benefits!
Once again, with their pre-existing contacts and connections, incubators can hook you up with the perfect mentor for your company.
Want a mentor to guide you through your business decisions?
3. Access to Resources to build a team
To deliver the best results, you will need the best resources. Unfortunately in most cases, the best resources come with a steep price tag. (*Wink*)
Want to create a detailed working blueprint of your next big idea? Hmm, that may burn a hole in your pocket, unless you team up with an incubator.
In this way, you can get access to high-end technology in a cost-effective manner.
Speaking of high-end technology, most businesses these days need to have a tech team because everything is digital these days. You need a team to maintain and handle that, don’t you?
And let’s be honest, it takes time-and funds- to build the perfect team. Now, until you have your own team, you can always outsource for tech support. And who better to outsource from than your incubator?
For example, TheCodeWork’s in-house team of tech experts is always ready to iron out any technical difficulties you might face!
What’s more, incubators also hold regular workshops for their startup partners. These workshops cover topics like
- future forecasting
- obtaining funding
- legal frameworks, and
- rapid prototyping
(All of which, I should remind you, are available with TheCodeWork’s Startup Ecosystem).
With access to such resources, you will definitely learn the business fundamentals quickly and more conveniently.
4. Raising Funds
Talking of convenience, wouldn’t life be so much easier if you could simply get the business funding you needed?
But getting a business funded is no easy job. Firstly, you have to find investors who are interested in your idea. Then, you must explain to them your product concept, business model, revenue model, and so on. It’s a long process!
But business incubators can make it so much easier. By collaborating with their investor partners, incubators will give you assured access to more funding opportunities.
So, your startup stands a much better chance of getting funded when you team up with an incubator.
Give your business the love-and funds- it deserves! Get ready to talk to potential investors soon with TheCodeWork’s Startup Ecosystem.
Pro-tip: In a post-Covid world, investors have stopped funding just concepts or ideas. They usually want to see some data analysis that proves your idea/venture’s worth and need in the market. The best way to do so is by building an MVP and collecting real-time market feedback for the investors. If your MVP fails, you always know what went wrong and pivot accordingly.
5. Boost Business Growth
Now, since all other things are taken care of, you can concentrate on what matters the most. Staying afloat and growing your business. A business incubator can definitely help with that. It will,
- Warn you about the pitfalls that commonly occur when you’re trying to expand
- Provide necessary resources (like workspace) and other benefits
- Give you an edge when you’re trying to enter a crowded sector (with their pre-established network, of course!)
- Help you launch a minimum viable product and test your business model
- Minimize the risks that come with business expansion
All these-and more- benefits will allow your startup to succeed and grow at an exponential rate. Tell me, what’s not to love about speedy business growth?
If you’re still trying to decide whether or not to join an incubator, just look at the data. The five-year survival rate of incubated startups has been estimated to be as high as 87 percent — much higher than that of non-incubated ones.
This is especially impressive in the cut-throat world of modern entrepreneurship, wouldn’t you agree?
If you’re an entrepreneur in India and are looking for an incubator to grow your business, we can help! Be it technical assistance, legal support, branding, or funding, TheCodeWork’s Startup Ecosystem has got you covered.
So book a free consultation with our expert team now!