Before we discuss the business Incubator top tips from the International business guru it would be prudent of me to explain some of the startling facts and statistics about new business start-ups.
Business Incubator & International Business Guru Statistic #1: Business Start Up & Failure Statistics
- 400,000 new businesses start up each year in the UK.
Business Incubator & International Business Guru Statistic #2: Business Start Up & Failure Statistics
- As many as one fifth of these cease trading within their first 12 months.*
Business Incubator & International Business Guru ru Statistic #3: Business Start Up & Failure Statistics
- Some economists state over 50% of small businesses fail in the first year.
Business Incubator & International Business Guru Statistic #4: Business Start Up & Failure Statistics
- Some economists state 95% fail within the first five years.
400,000 new businesses start up each year in the UK. As many as one fifth of these cease trading within their first 12 months.* Some economists state over 50% of small businesses fail in the first year & 95% fail within the first five years.
The business Incubator top tips from the International business guru, highlights the 9 main reasons why businesses fail, & how a new business operating in a business incubator achieves a high rate of success.
The 9 Main Reasons Why Businesses Fail
Business Incubator & International Business Guru Fact #1:
1. Poor marketing:
Business Incubator & International Business Guru Fact #2:
2. Cash flow problems:
Business Incubator & International Business Guru Fact #3:
3. Poor business planning:
Business Incubator & International Business Guru Fact #4:
4. Lack of finance:
Business Incubator & International Business Guru Fact #5:
5. Failure to embrace new technologies:
Business Incubator & International Business Guru Fact #6:
6. Poor choice of location:
Business Incubator & International Business Guru Fact #7:
7. Poor management:
Business Incubator & International Business Guru Fact #8:
8. Poor human resource relations:
Business Incubator & International Business Guru Fact #9:
9. Lack of clear objectives:
Franchise Businesses have a 90% success rate. * * Daily Mail 07.01.08
Business incubation’s flexibility dictates a success rate of 98%.*
- 87% still survive after 5 years of starting. *
- *UK Business Incubation (the international membership and best practice body)
The Concept Of Business Incubation
- Business Incubation (BI) is a unique & highly flexible combination of business development processes, infrastructure & people.
- BI is designed to support and fast track new & small businesses, products, innovations & entrepreneurs by offering support through the early stages of development and/or change.
What Is Business Incubation?
- Business incubation provide SMEs and start-ups with the ideal location to develop and grow their businesses, offering everything from virtual support, rent-a-desk through to state of the art business facilities and everything in between.
- They provide direct access to hands on intensive business support, access to finance and experts and to other entrepreneurs and suppliers to really make businesses and entrepreneurs to grow.
Q: Why Does Business Incubation Work?
A: Business Support & Expertise
- Every growing business needs the right accommodation; Most people in business incubation are attracted by the ease of monthly rental and an early exit option if things aren’t working out for them.The added value of specialist business expertise and on-going support and advice generally keeps them hooked.
- Starting any business is fraught with uncertainty, financial burdens and resource issues.
- Incubators offer the opportunity of not making the same mistakes other businesses have in the past.They also generally provide a route to business finance coaching and mentoring.
- Little realistic business support is offered to aspiring entrepreneurs from minority & disenfranchised groups
The Goal Of Business Incubators
- Business incubation provides an environment for the internal passage of business advice, support and nurturing required during the early start up phase of business development.
- The goal is to increase the chance that a start-up will succeed, and shorten the time and reduce the cost of establishing and growing its business.
- If successful, business incubators can help to nurture the companies that will form the true creators of a region’s or nation’s future wealth and employment.
Business Incubation Objective
Business Incubators have been used to achieve a wide range of objectives. Primarily those that small businesses are good at; i.e.
1. Creating jobs
2. Developing innovative ideas
3. Diversifying the local economy
4. Generating activity and wealth by creating a vibrant small business sector.
UK Business Incubators
1. Approx’ 300 UK business incubators.
2. Supporting over 20,000 dynamic, creative and innovative businesses.
3. Supporting all sectors, including ICT, science, technology, creative industries & social enterprises.
4. All manner of entrepreneurs represented.
5. No age limit, gender or physical discrimination.
About UK Business Incubators
- Research demonstrates that each incubation client business leads to approximately 167 employment opportunities per incubation unit. Each unit averages 30 businesses.
- Many (59 to 60%) of incubators run ‘outreach’ services, providing support to commpanies outside of the incubation unit.
Location Of UK Incubators
- Stand alone business incubators
- Science or business park
- University campus
- Private sector large corporate
- Anywhere where there is a demand for intensive business support.
- Business incubators can be found in all regions and locations.
- They are located where the market needs them.
Assisting Entrepreneurs – Business incubator’s help to grow entrepreneur’s through tailored workshops and training, support in book-keeping and finance, assisting with tax returns and legislation.
- It offers a shoulder to cry on in hard times. – Or, will celebrate with you when you get those much needed orders.
- On average, clients tend to stay within the incubation environment for 2 to 3 years.
- There are incubators that specialize in accelerating the growth of your business which operate on 6 month terms.
- It really depends on the nature of the business, the sector its operating in, and the demands of the product or service that have been developed.
What Would It Take To Start Up?
A consultancy service to present the following…
1. Feasibility report. Cost: 2,500.
2. Way forward strategy. Cost: 3,800.
3. Strategic business plan. Cost: 8,000.
4. Marketing strategy. Cost: 4,500.
5. Implementation plan. Cost: 4.700. Total: 23,500.
If a prospective new business incubator considers a start-up and meets certain criteria, these fees may qualify for between 40 to 50% grant funding.
The most difficult aspect of starting a new Business Incubation Unit
Finding the right Managing Director/ Chief Executive Officer of the incubation unit who has proven business growth skills to steer the unit forward towards self sustainability & profitability.
Managing Director’s Requirements
- Private Office.
- Personal Assistant.
- Office furniture, IT & tele-communication equipment.
- Occasional access to Board Room.
- Financial Package