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Choosing the right startup incubator requires a lot of groundwork. Before diving into selection, you need to look at the incubator program’s track record and the output they deliver. You need to check which companies have benefited from the incubator’s program and what their plans are. Also take note of the support provided for the companies that have graduated.
Moreover, you need to verify whether the package and services offered by them are going to help your idea and company. Before joining a startup incubator, there are several factors that are considered. Therefore, you need to ensure that you are thorough with your research.
Here are a few steps to determine the right startup incubator for your business.
1. End-to-End Research
Capital alone is not the basis to selecting a startup incubator for your business. You need to consider whether the resources and packages are suitable for your business. All incubators vary because of their services and resources.
You need to invest a lot of time in these incubators and they can offer a lot beyond the capital. Incubators assist in networking, providing guidance, and mentorship your business requires. Therefore, end-to-end thorough research will help you make the right choice rather than wasting time on unsuitable incubators.
Moreover, certain incubators demand that you move out of the city and relocate. You need to analyze your own business to understand whether you can prosper in the city or if you can relocate. Based on these decisions and research, you can get a fair idea about the incubators that are best suited for your company.
2. Seeking Advice from Alumni
Look up the alumni companies of the startup incubators and consult with them. Get to know about their experiences, the benefits they have received from the incubator, and the support they got after they graduated.
This will help you better understand the startup incubator. This also helps give you an insight into how the incubator functions and its success rate for your own company. You can also conduct surveys for various incubators and ask the companies to answer a few questions. This will help you analyze your own plans better.
3. Assemble a Reliable Team
At the end of the day, it is your business and team that needs to make it big in the industry. Therefore, you need to gather a strong team to support you in the business. Only having a business idea before enrolling into an incubator is not sufficient. Incubators are looking forward to a group of robust founders and a strong team.
If you only have an idea, the incubators may prefer a more refined version of your team and your business. They can even change your direction to a more feasible economic solution that might not be what you originally planned.
It should always be the initial entrepreneur who must execute the business ideas and strategies. Therefore, it is important that you have a strong team for business development who can adapt to change and are skilled.
4. Proposing a Unique Pitch
No business program, whether it is an investment company, an angel investor, or a startup incubator, wants to invest in a company that has a poor business model. Incubators always look for companies that have the potential and a fighting chance to survive in the market. This is not only for the sake of equity but also for future investments.
As the saying goes, the first impression is the last impression. Preparing a unique pitch goes a long way in securing your position in an incubator. You need to ensure that once you look at the previous pitches made to the incubators and its success in the long run to prepare your own pitch.
5. How Much are you Promising?
Usually, the fee for getting enrolled in an incubator is exchanging a share of the company’s equity. You need to determine how much you are ready to promise to the incubators before getting admitted.
Most importantly, you need to determine if it is worth it at the end of the day. Don’t forget to take legal consultation before drawing up an agreement. A share of equity is a big deal for any company. Therefore, you need to be sure of how much they are asking for and whether it will truly benefit your company.
