Your friend’s father is starting a company in the solar power industry using a technology he developed, which has received favorable write-ups in several technical publications. Her father has been approached by two angel investors who are eager to invest in his proposed venture. He’s also been offered a spot in a prestigious technology incubator, where he can maintain an office and a lab to work on his project. Your friend has asked you for your thoughts on what her father should do. Have no problem discussing the pluses and minuses of her father’s options. Please write down the pros and cons of the various options.
Technology business incubator is the variant of more traditional business incubation schemes. It helps to assist technology-oriented entrepreneurs during the start-up, and in the early development of the firms, providing workspace shared facilities and a range of business support services.
The pros of having the Technology Incubator:
- As soon as the business infrastructure is set up in place, it will help her father to concentrate on the essential matters most-the core business, i.e. Product Development. It becomes utmost important when the company is newly setup.
- The most significant benefit of being a part of an Incubator is that they provide an excellent opportunity to tap into a strong network of business partners. It is utmost important according to the public relation perspective, and in-turn generates the leads of the business.
- The aggressive product development and rigorous testing are done with the help of business incubators. It is essential for the tech-based start-up. The development of the product is further enhanced by releasing a new report and getting feedback from the clients/customers.
- These Business Incubators have mentors who will further help in increasing the knowledge and developing a better product/project.
- To let her father’s new business keep focus and grown in the right direction, a structured environment and curriculum are necessary.
- Different incubators target different industries, such as support on Solar Power Industries. Thus, they can give targeted resources and expertise.
The cons of having Technology Incubators
1. An incubator is an environment for professionals, whereas the application process can be rigorous and competitive. Her father should keep a detailed business plan ready, and all business activities should be disclosed.
2. Her father should remain patient as many incubators require a time commitment of around one to two years, plus the adherence to the schedule set up by the incubator, which may include many workshops and training.
3. Her father should not neglect the point that sometimes the technology incubators make you depend on you them. One should look for links, funds, assistance etc.
It is essential to decide whether to go for technology incubators or not, is a very focused and thoughtful decision. Hence, I will give my opinion to her father by saying that: the ideal situation is to join an incubator, avail the services needed and keeping some amount of professional space for your self. It will not only help you reap the benefits of incubation but helps you to have control over your ideas and the start-up.
- The incubators offering should be researched well to see whether they match with your needs or not.
- The curriculum should be assessed to make sure that it will teach you what you need to learn for the success of your business.
- If needed, the alumni of the respective Technology Incubator must be contacted to know about their experience. Their feedback will help her father a lot.
- The copying that is offered by the technology incubator must be thoroughly checked. Since you are going to start a new industry, then you should match your requirements and should provide an environment for her father’s solar power industry technology innovation to grow.
Hence, these are some of my views which should be read thoroughly, discussed, and the best-fit technology incubator should be selected.