Why business incubator matters to a first-time founder
A business incubator can make the lonely early months cheaper and less of a guessing game, with a desk, advice and introductions you could not easily buy. The cost is time: workshops, reporting and events compete with customer work. Because many incubators do not invest, you usually keep all your shares, but you should not expect funding either. Judge one by whether its mentors and network fit your market.
Examples of business incubator
A founder building a tool for freelance designers joins a local business incubator for nine months. She gets a free desk, a weekly hour with a mentor who has hired a first employee, and introductions to two design agencies that might pilot the product. The incubator takes no shares and sets no deadline. In return she attends monthly workshops and reports her progress each quarter.
Common misunderstanding
People expect an incubator to fund them, or treat it as an accelerator with a different name. Some incubators, particularly those run by universities or councils, offer support without any investment, while others charge rent or take a small stake. Accelerators are shorter, run fixed cohorts and usually invest for equity. Read what each business incubator actually offers and asks for, rather than assuming from the label.
When to use it
Consider a business incubator when you are early, on your own, and you would actually use the mentors and the desk. Skip it when the other companies serve a market you do not, or when the programme would take the hours you need for customers.