Why incubation? A premature infant baby is kept in incubator to keep them in controlled and protective environment. Startup has 95 % failure rate and mortality duration is 0 to 36 months. Entrepreurs generally lack versatility to wear so many hats and venture's bandwidth to hire the experts is very limited. There are so many non-core activities that consume startup owner's attention causing delay and increasing risk in strengthening the business model.
The Business Model: Three core activities that has to start earliest in business model are funding, team building and sales. Pilot run of the product/ service greatly improves the fine tuning of the product/ service launch. The collaborative approach can greatly accelerate the scalability but owner's network is limited and infrastructure as well as opex cost has to be kept under control. This makes the collaboration a must have but most difficult to have dilemma.
How it works?
1. Keep the office at economical place unless location of your office is critical to your business.
2. Use incubation centre to research on market, identify addressable customer segments, identify and develop channel partners from beginning.
3. Identify potential collaborator and conduct meetings with them at incubation centre and plan to gather some initial customers.
4. Explain the cutomer and collaborators that you are using incubation centre to plan best customer experience at affordable cost with improved sustainability and at competitive prices.
I am an established businessman, why do I need incubation centre?
The rate of disruption is fast and can make the business model vulnerable before we can prepare our reaction. The ecosystem in and around the incubation centre propel out of box thinking, accelerate execution abilities and support to create growth opportunities. In reality no business is established forever and will always have to go through the test of sustainability and scalability.