INCUBATOR OPERATIONAL MODEL
Incubator’s investments
The investments undertaken by the incubator can be split into two categories: the investments for the incubator itself (desks, computers, phones …) and the investments for the incubation of tenant companies. The first ones will be essentially made at the launch of the incubator; the second ones will be spread over the first year along with the arrival of the selected tenants. The aim of such investments is to provide the tenant companies with all the facilities and services they need to build their businesses.
Exit strategy
The networking around the incubator includes the build up of strong relationship between the incubator and the potential buyers (venture capitalists, IT-oriented businesses ...). The incubator will involve these businesses in the incubation process through meetings and conferences. Many bridges will be set up between the tenants and the business world.
Following such a strategy will make the businesses feel committed to the success of this experience and make them keen to take over the tenant companies after the graduation.
It is also possible to consider a system of “management buy-out”. The entrepreneurs would buy the stocks owned by the incubator.
Business development and marketing plans
An incubated company‘s life cycle lasts 24 months. Within this period, 3-6 months are called pre-incubation, the other months are the incubation itself followed by the post incubation.
The offer needs to be adapted depending on the stage of the cycle.
The pre-incubation starts after the selection stages are completed. In order not to commit the incubator for a too long period, the company will have to go though a phase of testing and project consolidation. During this period the entrepreneur business plan is studied in depth with the help of the incubator’s board as well as other parties (Marketing, Financial, Legal, Technical...). The main objective is to refine and focus the project and ensure its viability. After that comes the incubation period during which the project is launched and put on the right track. The next eighteen months are used to make sure the company is self sustainable.
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