24 Jan 2022 - 3 minutes to read
Startup incubators are support programmes specifically designed for early-stage startup businesses. Ultimately, the incubator aims to nurture startups by supporting them through early product development and customer acquisition. Within the incubator, a company will refine its idea, build out its business plan, work on product-market fit, identify intellectual property issues, and network in the startup ecosystem.
Studies show that 86% of new ventures will only enjoy a 5-year lifespan or less and 2 out of 10 new businesses fail in the first year of operations. These statistics alone show just how crucial early support is for survival.
Startup Incubators work with companies (or single entrepreneurs) that are earlier in the startup process, helping them to refine their business ideas and build their company from the ground up. Accelerator’s however, provide early-stage companies that already have a minimum viable product (MVP) with the education, resources and mentorship needed to promote what might otherwise be several slow years of growth into a few short months. So, accelerators focus on scaling a business while incubators are often more focused on innovation.
Incubators are also more open-ended than accelerators, and aren't usually designed to rapidly boost growth. Instead, incubators nurture and mentor startups over longer periods of time.
Co-working is a big part of the incubator experience and has been split off as its own separate business offering around the country, with co-working spaces, like Tramshed Tech, charging rent for access to utilities. Some accelerators offer a co-working space, but most provide companies with private office space or let them find it on their own.
Tramshed Tech is a startup ecosystem, home to 50+ companies ranging from pre-revenue start-ups to scaling businesses with 600+ registered members from the digital, creative and tech communities.Tramshed Tech is the best place to start and grow your business because we understand the challenges entrepreneurs face. We build beautiful workspaces with business support and skills programmes to help businesses thrive.
One of the many business support schemes we run here at Tramshed is the Start Up Academy. The twelve-week incubator programme covers all aspects of building a successful business from idea generation and planning to finance, product development and team building. Find out more about the Tramshed Tech Start Up Academy here.
Incubators will bring substantial benefits to startup businesses:
Access to a number of experienced mentors means there are great opportunities for learning during an incubator program. Many start up incubators offer workshops and panel discussions, which are both incredibly helpful in supporting early businesses development.
If you want to build a strong network among other entrepreneurs in your industry, incubators often provide you with the perfect method of doing so.
Funding is the second largest reason why startups fail as they simply run out of cash. Making sure your business has sufficient funding is therefore crucial in determining not only the growth of your business, but the life of it.
All businesses involved in the Tramshed Tech start up academy will have the opportunity to pitch to a panel of investors whereby one lucky business will receive a prize of £10,000 in equity-free cash, awarded directly from ‘Google For Start Ups’.
Written by Kate, for Tramshed Tech.