Starting The Process
 

Feasibility Study

The decision to set up an incubator should be based on a thorough and objective analysis of the information gathered from a feasibility study - to verify the demand from entrepreneurs and/or small businesses, to identify potential best locations, and ensure the availability of financial/other resources (including access to technical advice and expertise). Crucially, projects need to clearly identify the following:

  • what are their key objectives, viz. to create jobs, create start-up companies, commercialise research, grow existing small businesses;
  • whether and what they intend to specialise in, e.g. sector or type of businesses; and
  • where the sources for the project clients will come from, e.g. local universities, large corporates, existing small businesses.

The Business Plan

The incubator needs to be structured so that the business plan and financial model define what is required to make the incubator self-sustainable. Incubators established with an on-going reliance on a subsidy from a particular sponsor are vulnerable to sudden changes in the sponsors' priorities or objectives, which can, in extreme circumstances, result in the withdrawal of the subsidy.

The Champion

Incubator projects often need to be based on a partnership of different sponsors or partners, each bringing to bear different skills and objectives. Bringing these together and establishing clear objectives and a business plan is difficult and can be helped by having a person or organisation that acts as the champion of the project.