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 Facts:

1. Poor marketing:
2. Cash flow problems:
3. Poor business planning:
4. Lack of finance:
5. Failure to embrace new technologies :
6. Poor choice of location:
7. Poor management:
8. Poor human resource relations:
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 nurture & grow new & small businesses, products, innovations & entrepreneurs by supporting them 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 clients of business incubators are attracted by the easy-in/easy out terms, but once through the doors, it’s the access to business support & expertise that keeps them there.
• Starting any business is fraught with uncertainty, financial burdens and resource issues.
• Incubators are ideally placed to remove some of the hurdles and to negotiate a path to the all important finance and mentoring all entrepreneurs need.
• Little realistic business support is offered to aspiring entrepreneurs from minority & disenfranchised groups

The Goal Of Business Incubators

• Business incubation provides a nurturing, instructive and supportive environment for entrepreneurs during the critical stages of starting up a new business.
• 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 proves that an incubator’s client businesses provided an average of 167 jobs (full time equivalents) per incubator and are home to an average of 30 client businesses.
• Most (60%) incubators also operate “outreach” services, helping and advising companies outside the incubator.
  Location Of UK Incubators
• Stand alone business incubators
• Science or business park
• University campus
• Laboratory
• 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.

Incubation Period

• 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 can be discussed if/when Novas decide to move ahead with the project.