If you are operating with few financial resources, and working from home is not a viable option, this probably means that you cannot afford to lease an office space. In this case, it would be wise to consider a business incubator. Business incubators are facilities that provide economical office space, as well as business services such as typing and copying, the use of facilities necessary for business, some management advice, and in some cases, financial assistance. Well known businesses like Google and Lycos began life in university affiliated business incubators.
The first business incubator was the Batavia Industrial Center, which opened in Batavia, NY in 1959. The concept of business incubation, however, did not become popular until the late 1970s. In 1980 there were approximately 12 business incubators in existence in the United States. All of the business incubators in that time period were created in the Northeast United States, which had previously been the industrial center of the country and had been hard hit by plant closures during the 1970s. The growth of business incubators was swift in the 1980s as far-sighted entrepreneurs began to see the value of fostering the growth of new businesses to help quicken the growth of local economies, instead of concentrating on expanding large corporations. In the mid-1980s the Small Business Administration began to push the development of business incubators. In more recent years communities all over the world have begun to promote the development of business incubators, recognize their value and potential. The National Business Incubation Association was formed in 1985. This association’s role was to provide training and tools for assisting fledgling firms as well as to serve as a clearinghouse for information on incubator management and development issues. In its first year, there were only 40 members, but this number ballooned up to 1600 members in 2006.
Many different types of entities and sponsors own and operate business incubators, including local governments, universities, local economic development groups, and state-funded groups. The National Business Incubation Association has all the information you might need to find a business incubator near you. Their website is http://www.nbia.org. As the name implies, business incubators are designed to foster the growth of small businesses, to get them to the point where they can exist on their own. To that end, the benefits offered include inexpensive office space as well as access to business services.
There are also private companies in the incubation business, but unlike the not for profit agencies listed above, theses business incubators are seeking to make a profit, so it is a buyer beware market in these scenarios. The private business incubators may try such tactics as forcing you into a long term lease that will hinder the flexibility of your business growth; managerial assistance may be nonexistent, or if it does exist, it may be less than useful to you. Make sure to seek legal advice before choosing a private business incubator. Another problem with private incubators is that many are newly formed, riding on the trend of Internet Businesses. Sometimes these private business incubators need almost as much help as the businesses they purport to be incubating. In fact, not everyone thinks business incubators are a good idea. Some entrepreneurs think that the services provided by incubators are just a commodity that puts a damper on revenue opportunities. Ultimately it is up to the individual entrepreneur to use their critical thinking and decision making skills to decide whether a business incubator is right for each specific business situation.
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