Reasons Why Startups Should Join A Business Incubator
The high interest in establishing a startup also encourages many institutions to establish incubation programs in order to help startup stakeholders develop their business which is still in the early stages. The supports being offered are in various forms, such as mentoring, idea validation, co-working space, and funding. In Indonesia, there are already lots of business incubators that can be targeted to join in, one of which is the incubation program organized by PUI-PT Disruptive Learning Innovation (DLI), State University of Malang (UM). PT Telkom Indonesia’s Senior Innovation Management in 2018 suggested startups to join the business incubation program because of benefits offered by them.
Referring to Kumparan.com, here are some reasons why startup companies need to join a business incubation program.
Reducing the possibility of making common mistakes
Making a mistake is not a failure, nevertheless, a mistake made by a startup causes it to bear costs which actually do not need to be borne if the startup does not make that mistake. Mentoring and idea validation supports provided by business incubators may minimize the inefficiencies of possible common mistakes (such as mistakes in determining product prices and implementing business strategies) made by startups, especially if the stakeholders in the startup still have no sufficient knowledge and ability in running a startup and digitized business. Aside from the business incubator itself, usually business incubators also invite entrepreneurs and large investors to share experiences, feedback, and guidelines in accelerating the business development of startups.
Access to Investors
In addition to providing mentoring assistance and validating ideas, business incubators also provide assistance in the form of funding. Then, the business incubators become a forum that brings together startups with big investors and provides an opportunity for startups to do pitching in order to impress big investors in providing funding as well so that startups get more funding.
Focus on Product Development
Usually business incubators have a co-working space that can be used by startups that still don’t have offices to do research and develop products. Then, through the help of ideas validation provided by them, startups can find out whether the products made have a market, meet the needs of the society, and prospectively to generate large revenue through feedback or assessments provided by experts, practitioners, and resource persons invited by business incubators.
Get Business Partners
By working in a co-working space, a startup can meet and get acquainted, then work with other startups. Because of working in the same place, the partnership process (such as knowledge and experience sharing) between them is more effective and efficient. In addition, by joining a business incubation program, startups also have the possibility to partner up with large companies, where through this collaboration, startups have more opportunities to develop faster, such as opportunities in terms of funding, promotion, and conducting R&D.
References
https://republika.co.id/berita/pguttk349/praktisi-emstartupem-butuh-inkubator-untuk-berkembang
https://yooreka.id/levelup/peran-inkubator-bisnis-untuk-startup-apa-sih-pentingnya/
