Business Incubator Blueprint: How to Open a Business Incubator and Maximize Revenue

The Presentation inside:

Slide 0

Slide 1

Slide 2

Slide 3

Slide 4

Slide 5

Who are you serving? What is your purpose? What impact do you want to create? What stakeholder commitments need to be considered? ESTABLISHING YOUR MISSION

Slide 6

What do you want your program to be known for? What are your differentiators? *Equity vs. no equity *Services *Industries Where do you want to be after 1 year? 5 years? 10 years? VALUES & GOALS

Slide 7

Slide 8

Size reflects transitional space but offers expansion capabilities Flexible and collaborative areas Sensitive to security and IP concerns Technological infrastructure to minimize cost for a startup FROM 30,000 FEET

Slide 9

Technology / software: Office space, server room, modern and collaborative environment Biotech / medical device: Wet labs, specialty equipment Clean / renewable energy: Hybrid office and/or lab space; additional light manufacturing NEEDS BY INDUSTRY

Slide 10

Leveraged existing feasibility studies and needs assessments Labs equipped with commercial-grade hoods and furniture Additional specialty bio equipment that can be shared and reused LABS & EQUIPMENT

Slide 11


Slide 12

Slide 13

Evaluate criteria based on goals and mission: * Job creation, growth potential * Coachable entrepreneurs * Intellectual property * Alignment with resources * Number of founders * Experience of entrepreneur(s) Incorporate multiple checkpoints APPLICATION & SELECTION

Slide 14

Gap analysis | resource alignment IP analysis | business model validation Coachable | consistent with mission All of the above EIR / Business Counselor Mentors and Partners Executive Director Selection Committee

Slide 15

Evolves as your program, entrepreneurs and expertise changes Assist entrepreneurs through process, but allow independent approval APPLICATION & SELECTION

Slide 16

RESIDENT CLIENTS Company-specific roadmap for growth Monthly, quarterly business counseling Daily hallway conversations Access to 40-50 specialized mentors Discounted 3D printing and design 24/7 access to office and/or wet lab space (at below-market rent) Partner services (HubSpot, AWS) Access to investment and partner network

Slide 17

AFFILIATE CLIENTS Company-specific roadmap for growth Monthly, quarterly business counseling Access to collaborative, cowork space Access to 40-50 specialized mentors Discounted 3D printing and design Partner services (HubSpot, AWS) Access to investment and partner network

Slide 18

EDUCATIONAL OPPORTUNITIES Programming for CLIENTS (economic impact) and the COMMUNITY (public visibility and lead generation) Leverage skills and expertise of leaders across the globe Seminars, workshops, retreats, meet-ups, and others

Slide 19

Partnerships with like-minded organizations to host workshops * State/government * Corporate partners * Entrepreneurial supporters * Meet-up groups Consider discounted or free access for clients to “external” events EDUCATIONAL OPPORTUNITIES

Slide 20

EDUCATIONAL OPPORTUNITIES Student business incubation program (virtual or physical space) High school entrepreneurship * Tie with STEM initiatives * 3D printing and coding * Entrepreneurship primer

Slide 21

BUSINESS COUNSELING Core of traditional incubation program Onsite professionals are vital for daily and weekly needs Beware of “mixed messages” Consider different stages of development

Slide 22

Monthly Quarterly Tactical Immediate challenges Status check Meeting program requirements Strategic Goal setting Overall business traction Major pivots BUSINESS COUNSELING

Slide 23

MENTORSHIP Support business counselors 2-3 in each major expertise and/or industry: * Marketing * Manufacturing * Finance * Regulatory | government

Slide 24

MENTORSHIP Mutually-beneficial arrangement: MENTORS build new client relations and increase community exposure ENTREPRENEURS receive pro bono consulting and discounted services INCUBATORS gain network of specialized expertise and support

Slide 25

METRICS TO MEASURE Clients Incubator Job creation *FTE *Part-time *Contract *Interns Revenue Investment (equity, grants) Partnerships / Sponsorships Occupancy rate PR visibility and social growth Educational opportunities offered

Slide 26

COMMUNITY PARTNERSHIPS HUGE differentiator Helps create “patchwork” quilt of the entrepreneurial method Local, national and international opportunities Helps advance startup ecosystem and incubator positioning

Slide 27

COMMUNITY PARTNERSHIPS Economic development: City of Phoenix, Arizona Commerce Authority Incubators, accelerators, cowork spaces: Seed Spot, CO+HOOTS, AzBIA Industry-specific: AZBio, Flinn Foundation, Clean Tech Open Corporate: SRP, Dignity Health

Slide 28

STRATEGIC PARTNERS AND SERVICES Discounted services * HubSpot Jumpstart program * Amazon Web Services Strategic guidance, expertise * MediCoventures * Dan Tyre, HubSpot * Legal firms, Ron Kisicki Community college resources * Business, entrepreneurship faculty * Operations support (Facilities, IT) * Student internships

Slide 29

Access to capital investment * VA Angels * Arizona Tech Investors * Desert Angels Pre-incubate, post-graduate * Selection committee: mentors | incubation leaders | industry experts * Graduation partners: Discovery Triangle STRATEGIC PARTNERS AND SERVICES

Slide 30

STRATEGIC PARTNERSHIPS Small Business Development Center (SBDC) * Early support and staffing * Dedicated business counselor * Network of business analysts * Additional programming and workshops * Student incubator operations Learn more:

Slide 31

Slide 32

STAFFING NEEDS Strategic vision | partnership development Client business strategy and development Day-to-day accountability Executive Director Entrepreneur-in-Residence Business Counselor(s)

Slide 33

Operations management | reporting Public visibility | client lead generation Reception | administrative support Coordinator Marketing Specialist Office Assistant Support marketing and operations Interns

Slide 34

THE BUDGET Invest in people first and build a great team Balance your expenses with client receivables and other revenues Reinvest gains into the program * New positions * New services

Slide 35

REVENUES EXPENSES Facilities Operations Marketing Expansion Program Fees New revenue streams Sponsorships Grants

Slide 36

Slide 37

MARKETING SERVICES Overall brand development Inbound marketing: content-driven, lead generation Website: optimize for user, platform for fresh content, mobile-friendly, opportunity to showcase sponsors Public relations

Slide 38

MARKETING SERVICES Client-related services: Revenue Non-revenue Video production Graphic design Photography Mentorship Brand development Social strategy Event sponsorships

Slide 39

Slide 40

NEW REVENUE STREAMS 3D printing center Competitive Intelligence Lab CLIA Lab Equipment rentals

Slide 41


Slide 42


Slide 43


Slide 44

SPONSORSHIPS/GRANTS Value-based (Friends of CEI) vs. Real-estate (conference rooms) Corporate incubation opportunities Numerous grants available for ongoing operational expenses and expansion efforts

Slide 45

ADVISORY BOARD Vet the strategic direction of incubation program Source for eventual succession planning

Slide 46

Slide 47

OUR BEST PRACTICES Your mission is your FOUNDATION that should guide every aspect of your incubator DESIGN A FACILITY that is flexible and tailored to serve diverse entrepreneurs Your program is your DIFFERENTIATOR – layer it with multiple services and partners

Slide 48

OUR BEST PRACTICES STAY RELEVANT for your entrepreneurs and in the marketplace, but don’t pivot just to make a change Validate your STRATEGIC DIRECTION regularly with key stakeholders BE CREATIVE with your staffing, your marketing and new revenue-generating opportunities

Slide 49

MORE RESOURCES NATIONAL BUSINESS INCUBATION ASSOCIATION: Best practices for incubator programs and managers | OTHER INCUBATION PROGRAMS: * Reputable * University & Higher Ed models * Community-based GRANT OPPORTUNITIES: Economic Development Administration | SBA Accelerator Fund | Coleman Foundation

Slide 50

LEARN MORE [email protected] @mcorcollege | @ceigateway |

Slide 51