Business Incubation and Community Benefits. Business Link – Vista Orientation June 19, 2008 Presented by Dar Schwanbeck, CMC NABI Managing Director www.nabi.ca Phone 780 460 1000. Menu. Background on Incubation NABI Goals and Structure Plans Marketing Elements Budget
Business Link – Vista Orientation
June 19, 2008
Presented by Dar Schwanbeck, CMC
NABI Managing Director
www.nabi.ca Phone 780 460 1000
A business incubator is a place where entrepreneurs and small businesses can receive business counseling, coaching and mentoring, as well as build skills and make connections. Incubators typically provide affordable commercial spaces, administrative support services and a range of seminars and workshops designed to foster and accelerate small business growth. They may be located on college campuses or take advantage of existing buildings that are re-purposed for incubation use. Critical to the definition of an incubator is the provision of management guidance, technical assistance and consulting tailored to growing small businesses.
“The level playing field for entrepreneurs is a myth. A new company is an offshoot of a newly identified niche in the market. Business Incubators just accelerate value flow to market. For start-up entrepreneurs, steep challenges pave the way for greater achievements and competencies. Business Incubators provide opportunities for start-ups to focus on core competencies and leverage performance based growth…Innovation to market, equal opportunities for young entrepreneurs, institutionalizing better entrepreneurial practices, better resource management, reduced business mortality, etc. are some of the other features.” (Source: R. M. Jawahar, Director, TREC-STEP, India)
Literature from the NBIA suggests 10 key success factors to incubation success. These success factors apply, regardless of incubator mission or specific focus.
See NBIA, Principles and Best Practices of Business Incubation.
In trying to determine the probability of success of any given business incubator, feasibility studies often examine as many as 30 to 60 different variables. These studies can take months to complete and costs can range to hundreds of thousands of dollars. This is not surprising; investments in incubators are often in the millions of dollars.
When boiled down, there are a few critical success factors for a small, mixed use incubator. These include:
There are no “magic bullets” in determining incubator feasibility. Each project should:
By the close of 2010 NABI has 100 businesses under incubation (approximately 50 in-house and 50 region-based)
By 2018 we create 1000 new jobs in the region
At June1, 2009 NABI has:
42 in-house clients
10 region-based clients
That support a total of 154 jobs (3.3 per business)
Northern Alberta Business Incubator
NABI provides economic development support and services to the City of St. Albert through:
the provisioning of 41000 sq.ft. of office space and support services,
business education, courses and seminars, and
counselling and management advice to start-ups, small and medium-sized enterprises
NABI is a mixed-use business incubator, one of about 1200 in North America; NABI is now in its 20th year of operations
NABI improves the chances of client success from 20% to 80% at 5 years
NABI operates as a business in a fiscally responsible manner, while capitalizing on the benefits of being a non-profit society; most incubators depend heavily on public funding; NABI receives about 20% of its operating dollars from public sources
NABI currently supports 42 organizations with 154 employees
Tyco Thermal Controls
Chantal Ross Design
Michelle Jensen Counselling
Grads (and Not so Successful)
St. Albert Community FoundationComing and Going
We work with businesses who:
"Our business has grown three fold since moving in from our home offices and now it's time to move on. We have really enjoyed our time with NABI and staff Lorne, Dar, Pat and Irene, and the support that they have provided for us. The incubator has definitely helped move our business from part time to full time. We have grown now to the point that we can stand on our own and grow within the community."
Paul Falkowski & Bob HolmNew Dimension Investments Inc
Have a concrete business to develop
Need a business plan
Want practical, hands-on training and coaching to help them through start-up
Existing Business Owner
Work mostly in the business, not on the business
Never prepared a business plan or didn’t follow through
In business but barely making it
Want practical support to prepare and implement a business planTarget Customers
Strategic Versus Tactical Thinking
Integrated, Balanced Competitive Strategy
Shift From a Cost to a Throughput Model
Constraint Management (Sales)
People and Capabilities
Up-To-Date Business PlanSo you want to take your business to the next level.What are the hurdles?
Formal process in place…but not rigorously followed at the moment.