author introduction: Ashwin Ramasamy ContractIQ is the founder of the company. This site is for those enterprises and entrepreneurs to provide a free service platform, mobile curators plan allows them to look for the outsourcing partners.
Hari is a smart and savvy entrepreneurs, with a start-up company. Sent the mail to me one day, he asked me if there is any need to add a business incubator. I wrote back he said there is no need to immediately. After we talked for more than 30 minutes about it, but now I don’t think I ever so warmly discussed this matter with him. May I thought then save a young entrepreneurs is the heaven gives my mission.
the emergence of the business incubator is to help the business start-up entrepreneurs to understand the Starting Up 101 (Starting Up 101 is for students who are interested in entrepreneurship and community members held a seminar), so as to manage their companies, and their teacher are people had taken part in the business seminar. The role of the business incubator is mainly tells how the entrepreneurs and the right to carry out the work ahead of time, according to the practice, the fledgling company will not only survive in the fierce competition, also in the development of after becomes more prosperous, even reached a tipping point.
on this point, on the opening ceremony of Y Combinator someone has mentioned the concept that is probably say:
in 2005, Y Combinator has developed a new start-up capital business model. These enterprises should first moved to silicon valley for three months, in this period of time, we will work closely with them, helping them as soon as possible to the company development direction, and sells them to investors. These emerging companies need to prepare your company’s statement, has been invited to give those by carefully selecting investors do show, hope to get their money. So in each year’s Demo Day this Day (Demo Day is a subsidiary of Y Combinator startup semiannual Demo Day), the whole event will reach orgasm.
so, as one of the top business incubators, Y Combinator think this is a new kind of investment way. It’s caused everybody’s thinking: “why I said the emergence of the business incubator is not bring these emerging companies help?”
incubator is not as “omnipotent” you think
if the goal of the business incubator is to give these a start-up funding to help rather than – the purpose of this project was to help the company grow, and it is definitely worth a cynical. Emerging enterprise aims to a profitable or can be built using measuring platform, will become a real concept of the ideal development can quickly solve the problem of the sustainable development of enterprises. Money really can grow up in “enterprise” and “development” two aspects of help, but most of these start-ups cannot grow.
the majority of the business incubator is like a centralized project need to cooperate with many companies combined, the cooperation period is N months. In this period of time, every month business incubator to work closely with the project staff, and the cooperation time is often within six months.
Demo Day is a very convenient way, or for all of the business incubator is a business tool is necessary. Those involved in the emerging, however, enterprise must in business incubator in accordance with the relevant provisions, within a prescribed limit to selected companies making a presentation and even completed within the stipulated period, the practice often dispelled the enthusiasm of the emerging enterprises, may even lead these companies astray, let them for their company information fraud.
I mentioned earlier be incredibly ironic thing is that these emerging enterprise to join the business incubator as a shortcut to get financial support. These enterprises obviously ignores the fact that only a small part of the enterprise can get funded (the proportion exactly is 27%). In this quarter funded enterprise, because you is a subsidiary of entrepreneurial incubator is different, your companies the opportunity to obtain funding becomes more uncertain (72% of the 2012 Y Combinator company of emerging enterprises obtain the fund support). I know some of the business incubator doesn’t even have a Demo Day, a group of students “enterprise” their graduation after a year of learning, no company funding.
sometimes incubator can imprison entrepreneurs instead
start-ups often happened a historic breakthrough, always get breakthrough for the future with greater urgency. Even use the standard metric algorithm to calculate the growth of these companies a week, and also there is no way to predict a in the first week of no will achieve great success of emerging enterprises after a year to get their dream of “holy grail”, successful development of their enterprises.
keep in mind that the development of emerging enterprises must strike will, so was able to successfully change their own destiny. This is at the very least.
the problems encountered in the process of enterprise development will not only brings to the enterprise’s running short, in fact, in many cases, they may even cause irreparable damage. The business incubator is unintentionally to instill some common-sense ideas emerging enterprises, and the notion of these errors are often embedded hard to eliminate.
when it comes to products can adapt to the market, some with experience and conclusion instead more helpful.
in a certain sense, practical and realistic to do it better than do the investigation and study on the surface of the surface layer. I don’t know this thing is how to write code that to allow the product to adapt to the market, but, by contrast, to study the problem becomes less effective. Might as well to have a good talk about those crappy MVP and those who seriously study plan who good who bad.
disposable fragmented than have been struggling and the last is also not escape failure result is much better.
as a result, in a hurry to show or unprepared, but obviously the ensuing face and investors to negotiate, there are obvious his own company would not get signal, all these problems with the help of the business incubator is particularly prominent. There are a lot of emerging enterprises directly collapse under the pressure. These can’t afford so much pressure emerging enterprises should be how to do? In my opinion, they should make good use of the business incubator of intangible assets for them.
mentors are busy, most of people are struggling to
my own itself is in a global famous graduate business incubator, and became the company’s a teacher. Last year, I received a business incubator company gave me two emails. Mail contents are told me some instructions I had the latest development of emerging enterprises. In fact, I’m not remember their names, or their company engaged in the business. I gave them on the course for three months, in and after class, no firm has contacted me and told me that their company’s progress. As their company started tutor, I have no contact with them, the feeling is so bad. Ha ha, in fact is the fact that, after I graduated from the business incubator, I have been twice tried to contact my advisor, but are only talked about five minutes, after that, I have never contacted them anymore.
no matter how much these emerging enterprises mentor is famous, or how they are ready to help others, in fact, after the enterprise session, these teachers also can not find a strong reason to convince myself, whether should continue to keep in touch with the guidance of enterprise. In a global network of business incubators, this means that you made it that long mailing list of objects, and you’re just a irrelevant this mail receiving objects. Therefore, the development of emerging enterprises are told that the mail is not a secret, can let the teacher exchange platform and the emerging enterprises, this mail, also will not bring any pleasant feeling to you.
“display” success doesn’t make you get financing
if you are on your own in the Demo Day this Day can get financial support feel confident, then you are wrong. To treat this problem as 500 Startups, a partner at Christine Tsai gives this view:
if you think you can be in the Demo Day this Day can get investment, that do you really think is wrong. , of course, I do not rule out your enterprise can have access to the investment, but it is very rare. A Demo Day meaning lies in that you can contact with these investors, get a chance to know them. But if you just to get the purpose of investment, you might as well call each venture capital firm partner, the activities of the organization or directly go to their company. You can also go through the network and investors who are interested in your company development.
no matter where you get the money, its color and value are the same. Has an outstanding entrepreneur, he once told me: “you can give investors a premium, you protect the investor’s premium, until you hit the next investors before his assets are not at a premium. Tasks without Demo Day, relocation and entrepreneurial incubator company make the mark (in case you didn’t get any financial support after the Demo Day) under pressure, you get the money. If you need to face all the pressure to get a sum of money, the money before the money and comparison, its significance is self-evident. A wise man will make the right choice. In addition, you also don’t have to pay extra money during this period to make on your Demo Day to show the samples.
to grasp incubators of “intangible assets”
so why would you think entrepreneurship incubator can help emerging businesses?
, for example, there is a place where I can meet all my customers and potential customers, why don’t I? As long as they go to participate in the activities, emerging enterprise can establish its own brand, with smaller efforts can select their own customers. This is why vc firms are keen to attend business incubator.
and education, business incubator is also need competitive business, here, you can easily find companies that can create great value. You, however, it is difficult to quantify the ordinary of the lack of value the impact of the company to its customers. If a business incubator can give emerging enterprises is put forward to the opinion of the question, can replace funding and an unknown financial support, and it is also the target of the enterprise as a primary task to complete. After carefully considering the premise, there is no doubt that incubator more get the welcome of entrepreneurs.
everyone wants to win. As a result, the number of companies to join the business incubator, in a sense can be seen as to these business incubator service quality evaluation standard. Because there is no other way to prove, so the first stand out from the incubator is the first selection of emerging enterprises. But these companies should bear in mind that if you want your customers to face the choice which one business incubator, obviously you put your customers involved in the business of the game, and it is meaningless. Karma is like a high-end prostitutes, you must first pay to enjoy the service. To apply for admission to the threshold of the business incubator becomes quite high, this will make your customers feel the game is worth to attend.
as I said, all aspects of the business incubator is not necessary for your company to have help, they need only on those factors to measure the success of your company, better than you do. Such as a large number of customers work, like you a good tutor, who will be selected in the bid your internal investment network and so on. That is why it is difficult to easily pull out from here.
so, if you want to choose business incubator to develop your own company, then you can choose the way a full of unknown risks. The rest of the methods not only cheap but also can make your company develop better.