“Often, incubators are seen as magicians, where any business can be assisted, but in reality, not every business is ready or ideal for incubation,” says Mags Ponnan, head of the business incubator and customer value propositions at FNB.
There are three main concerns that an entrepreneur must satisfy and these concerns must be crystallised before incubation:
Stress test your ideas
Incubation will best work if the business is at a stage where it has created a product or service and has stress tested it, each business model and entrepreneur’s needs and approach will be unique in this regard. A great business idea is not always enough to turn into a viable business, there are other factors that are best answered when a business affords the market the opportunity to respond to the business.
“Stress testing an idea ensures that you save a lot of money and time in the long run, it also ensures that you maximise any assistance there is to get from an incubator,” adds Ponnan.
Depending on the maturity and needs of the business, the average incubation period can be anything from 1-3 years, which will also be in line with the incubator’s curriculum.
“We have many businesses that want to get into incubators long before they have tested their products in the market, but the reality is that incubators are not a classroom. They exist to propel businesses from one stage to another along the business lifecycle. In as much as there are early stages incubators, the businesses that get the most out of incubation are those that have been stress tested their business model and shown their customers’ appetite in the market space,” concludes Ponnan.