16 September, 2021
Why business incubation is great for your startup
Which entrepreneur can you relate to – Aslam, Adrian or Ananth?
Aslam started his business 2 months ago. He has successfully completed his company incorporation in Dubai and is looking to scale up his business. Aslam operates in the field of management consulting and is pretty much a one-man show.
Adrian’s story is quite different. Adrian took the advice of a business advisory in Dubai and completed his business
setup in Dubai. He is running his business for the last 1 year and his Fintech startup is about to get into the next round of funding. Adrian is looking at operationally efficient ways to cut costs for his running business.
Ananth is still at the business idea stage. He needs to get his idea converted into a business plan, conduct basic feasibility and then engage services for business setup in Dubai. Ananth requires the assistance of a corporate consultancy services provider.
What if we told you that business incubation can provide a solution to all their problems? Here is how it works.
Business Incubation Helps in Pre-License Stage
Plan the business!
For entrepreneurs like Ananth, the incubation service provider would first help with the basics of business. This could be in the form of outsourced consultancy services, or it could be in the form of a formal training workshop to handhold the business during baby steps.
The main responsibility of the business incubation in Dubai will be to identify the needs that the ideas set out to solve, how the idea can be applied in practice, and the target audience. Every business has its own target segments, and the prioritization of these segments will help the business to grow on a strong foundation.
Other services at this stage include:
- Business plan services
- Business basics training
- Market research
- Feasibility studies
- Projections and cash flow statements for 3 years
- Proof of concept
Business Incubation during licensing stage
Launch the business!
For entrepreneurs like Ananth, the next step will be to get hold of a formal trade license and related documentation. We have extensively covered this in one of our previous blog columns, which you may read here.
The main decisions that a business incubation service provider will help you to take in this stage are:
- Business setup in Dubai
- Providing the right office space for your business needs
- Helping you in opening a bank account
- Comprehensive PRO services and Government liaison services
- Website, Branding and Marketing Consultancy
- Ongoing compliance with regulatory requirements
Business Incubation in Operational Stage
Manage the business!
This is where Aslam and entrepreneurs like him would be interested.
In this stage of a company, there would be a need for some operational support from the business incubation service company. Here the requirement would focus on generating leads for the business, expanding networks, connecting with like-minded entrepreneurs, getting access to more events, and maybe even training sessions.
Brand awareness and engagement need to be built in this phase and the business incubation service provider like CBH is capable of delivering:-
- Lead generation for services
- Stronger and wider brand awareness across networks
- Access to ground information on events
- Ability to engage with like-minded entrepreneurs in a vibrant environment
- Links to strategic partners.
- Advisory boards and mentors
- Management team identification.
The solution would usually start with incubating your business by moving you into one of the CBH office spaces available in Downtown or Oud Metha, and then take it forward from there.
Business Incubation for Growth Stage:
Grow the business!
The businessmen who fall in the same bracket as Adrian would be more interested in high-growth advice and support.
- Marketing assistance.
- Market research.
- High-speed Internet access.
- Accounting/financial management.
- Help in providing access to bank loans, loan funds, and guarantee programs.
- Help with higher education and training resources.
- Strategic partnerships and network building.
- Help in access to angel investors or venture capital.
- The business incubation company can act as advisory boards and mentors.
- Technology scale-up and commercialization assistance.
Do business incubators provide outsourced services?
Yes, one of the important value additions provided by a business incubation service company is to help in outsourced services.
Are business incubators cost-effective?
This depends on the extent to which you utilize the role and mentorship of the business incubator in Dubai. If you use them merely as a service provider, you will relegate the relationship to being transactional, without deriving any value. However, if you choose to invest a little more and gain their knowledge and wisdom, you can see the returns over time, based on how successfully you grow.