Disclaimer:
The audio version of this article was generated using Google LM, an AI-powered language model. While every effort has been made to ensure accuracy, the audio may contain minor discrepancies or interpretations different from the original text. Please refer to the written article for the most precise content.
In the world of startups, it’s often said that an idea makes up only 1% of a company’s success, with the rest determined by execution. When bringing an entrepreneurial idea to life, we sometimes encounter significant challenges and, as entrepreneurs, often find ourselves asking, “What now?” when we can’t see a way to overcome an obstacle or solve a problem. In this blog, you will learn how to start a startup with the help of a business incubator.
To successfully solve the problems we face, we often need someone else’s perspective on the issue. Among many other forms of support, this different perspective can be found within startup incubator.
A business incubator is an organization that provides resources, knowledge, funding, and experience to founders and their businesses in the early stages of development. Incubation typically occurs when an entrepreneur has an idea for a product but has not yet started to implement it or is in the early stages of implementation. This “incubation” phase generally precedes the “acceleration” phase, where the startup speeds up its operations and expands its business. Incubation can be understood as the process of structuring and defining the business idea and model, while acceleration can be defined as the phase of developing and scaling the business idea. If an entrepreneur lacks experience in starting a business or has not yet clearly defined the problem, customer, value proposition, and other fundamental business elements, they can use an incubator to learn about all the components of a business and gain a clearer understanding of their entrepreneurial venture.
In addition, incubators often provide legal and administrative support, helping entrepreneurs navigate the complexities of bureaucratic processes. This can include assistance with business registration, intellectual property protection, and regulatory compliance. These services allow entrepreneurs to focus on developing their products and services, rather than being bogged down by administrative hurdles.
What can an entrepreneur expect from a business incubator?
Resources such as office space, equipment, and technology, which can be extremely beneficial for entrepreneurs in the early stages of development. To avoid significant initial investments in resources and thus accelerate your business, seek out specialized business incubators that have the resources needed to start your business.
Incubators often provide access to specialized tools and software that would otherwise be too expensive for early-stage entrepreneurs. These may include analytical tools, design software, and platforms for testing and product development. Additionally, entrepreneurs through an incubator can also achieve discounts on various tools for product development, management, design, sales, and business improvement. These resources can significantly accelerate the process of developing and testing new ideas.
An entrepreneur can also expect mentorship support in the form of advice and guidance for business development, marketing, technology development, or any other aspect needed to complete your business story and enter the market as soon as possible. You can also receive mentorship support through Smion—one of our specializations is providing mentorship within incubation programs.
Mentors not only provide strategic advice but also often serve as a motivational factor, helping entrepreneurs stay focused and motivated through challenging phases of development. A mentor’s experience in dealing with their own entrepreneurial challenges can be invaluable for new entrepreneurs facing similar issues for the first time.
Education and training are key values that a business incubator can provide to entrepreneurs. Through education and training, entrepreneurs “fill the gaps” in their knowledge and learn about various aspects of business, from financial management to sales and marketing strategies. Educational programs often include workshops, seminars, and online courses led by industry experts. These programs can be especially useful for entrepreneurs coming from technical backgrounds who need to develop business skills to successfully run their company.
Specialized assistance with key business elements—such as marketing, sales, product development, customer experience, and other crucial aspects of business. If an incubator has specific expertise in a particular business area, you can expect professional support in those segments. Incubators often collaborate with external experts and consultants to ensure that entrepreneurs have access to the latest and most relevant industry knowledge. This collaboration may include thematic workshops, individual consultations, and access to exclusive industry research that can provide deeper insights into market trends and best practices.
Building a network of investors, entrepreneurs, and key people within the entrepreneurial and sales ecosystem is something every startup or business must develop from the early days of its operation. When seeking investment, it is crucial to already have contacts with investors and to work on ensuring that the investor is familiar with your business before pitching your idea for potential investment. Incubators can play a key role in facilitating this initial contact through what is known as a “warm intro,” which they can provide for startup founders. Consider this—would you rather invest your money in a founder and startup about which you have only a few details, or in someone you have known for years? Therefore, it is very important to start building relationships with investors, entrepreneurs, and clients early in the development phase, and incubators can greatly assist in this process.
Additionally, incubators often organize events such as pitch competitions, conferences, and meetups where entrepreneurs can directly interact with potential investors. These events provide opportunities for networking and establishing important connections that can be crucial for the further growth and development of a startup.
How to choose the right incubator for your startup?
A startup is a company seeking a scalable business model. Read more information about the concept of a startup and most important startup terms.
When choosing an incubator for your company, several factors must be considered. In addition to the physical distance between you, your business address, and the incubator, you need to consider other, more crucial factors that can be key to your success. For example, the incubator’s specialization in a particular industry can provide more relevant and practical advice.
It is desirable that the staff conducting the incubation are experts, possess knowledge about starting a business, and are active stakeholders in the industry in which you operate.
Ensure that the incubator has specific expertise relevant to the development of your business. For example, if you are an AI startup applying to an incubator that focuses on agricultural projects unrelated to AI, it will be very challenging to connect with other incubator participants and leverage contacts to enhance your business.
Carefully review the incubation program to determine if the lectures, workshops, and mentoring sessions offer insights into areas you are not already familiar with, or if you are already knowledgeable about the program’s content.
Be open to learning new things. Often in the entrepreneurial world, we have an idea about our own product and believe that we know everything about the product, the market, and our customers. As Socrates said, “I know that I know nothing.” There is always something you can learn, improve, or change. It is important to be humble enough to listen to advice and implement the acquired knowledge into your business.
Check who the other stakeholders in the incubator are to see if there are already significant players within the incubator. For example, if you are involved in 3D printing and the incubator you are applying to already has several companies engaged in similar or related activities, you increase your chances of success. Networking and exchanging experiences with other startup founders has proven to be one of the most important factors in increasing the chances of success for your startup.
Pay special attention to the support programs for entrepreneurs. Many incubators offer various entrepreneurial incubation programs that can significantly boost your business. These programs are often structured to guide you through the basics of business development and provide a comprehensive overview of what is needed to achieve success. Smion has been supporting incubators for 10 years and developing structured programs for entrepreneurs participating in the incubation process.
Does the incubator charge money or take equity in the company for its incubation services? Sometimes this question can be crucial when choosing between incubators or accelerators. The goal of every entrepreneur is to minimize costs initially and spend resources only on things that yield concrete results. If the incubator takes an equity stake in the company for incubation but does not provide monetary support or if you feel that the non-material resources do not justify the equity cost, you might want to consider other options that offer similar value without taking a stake in your business.
Understanding the terms and structure of the contract is crucial. Sometimes, incubators that take an equity stake in the company offer additional services and support that may be more valuable than monetary investment. It is important to carefully evaluate all aspects of the offer and make a decision that is most beneficial for the long-term success of your business.
Keep in mind that an incubator will not solve all your problems. Incubators are there to provide structure, and mentoring, and use their expertise to help prevent mistakes and increase your chances of success. Remember, you are the one “behind the wheel.” You make decisions about where to “turn,” and how fast or safely to go, and the incubator can be a good co-pilot if you let it.
Networking with other entrepreneurs working on similar projects can lead to collaborations, joint ventures, and knowledge exchange that might otherwise be harder to access. Such collaboration can accelerate the development and commercialization of your product.
If your business is in an “advanced stage,” you might consider acceleration rather than incubation. Accelerators are often better suited for entrepreneurs who already have a defined product and are looking for ways to rapidly expand and grow. In such cases, an incubator may not provide the additional value needed to reach the next stage of development.
Ultimately, the success of your business depends on your ability to leverage the resources and support provided. An incubator can be an excellent tool to accelerate your growth, but your passion, dedication, and determination are what will ultimately lead you to your goals. Take full advantage of the opportunities the incubator offers, but never forget your role and responsibility in the process.
Read the experiences of various startup founders from around the world:
“I joined an incubator at the relatively mature age of 35. In this case, I had saved enough money from working to take a few months off and focus on the startup. The incubator connected us with a network of investors, and we managed to secure initial funding within a few months.
When I joined the incubator, they offered us $12,000 for 6% of our business. A year later, major incubators began offering $100,000 for 5-7% equity. This amount of money is sufficient for founders to work on their business while seeking additional funding. Percentages also work very well for incubators.
The startup industry has many downsides, and I have definitely gone through cynical phases regarding it. However, I can say that joining an incubator was a life-changing experience, and I would never have had a successful startup without it.”
“Incubators can be valuable if you are very specific about the goals you have and are aware that they can help you achieve those goals (e.g., fundraising, connecting with VCs, practicing pitches). Otherwise, they may not be suitable for everyone, but they are sometimes recommended as the next step for people who have not yet immersed themselves in the startup world.”
“An incubator opened many doors for us. We simply gained better access to people. If you call Jon Jones, he probably won’t answer, but if people who know Jon Jones at the incubator make a “warm introduction” you might get a return call.”
“I learned more in those three months about running a business than in the five years prior when I was actually running the business. I met other founders whom I am still in contact with, and after 13 years, we still share advice. I still keep in touch with the investors I met during that time.”
“That said, not all incubators are the same. What they offer and what they get in return may not always align. I always recommend reaching out to alumni of that specific incubator, talking to them, learning about their experiences, and checking if they felt it was worth it.”
“There are other options that provide similar networking and expertise.
My medical device startup isn’t the main focus of most incubators. However, I was invited to participate in a ‘capital readiness program’ based on something started at MIT. It was a free program (for me) where top partners from local service providers spent 8 hours a day providing very concentrated education on everything a CEO should know after the seed/Series A phase.
In addition to the educational component, the program provided an incredible opportunity to network with other startups in my industry, access advisors, and gain many useful templates and frameworks that I would never have been able to use all on my own.
The program did not provide funding. That remains, and will always be, the CEO’s job (period). However, when I assessed the monetary value of having senior partners from various top firms in one room for five days, the estimated value was between $200,000 and $400,000, along with free professional consulting. I seized the opportunity and had breakfast, lunch, dinner, and cocktails with every advisor I could, gaining over 20 hours of personalized consulting from each senior partner.
Given that, I’ve learned that the value of any incubator, program, etc., is highly variable depending on how well you leverage the opportunity to your advantage.
Note: Your experience may vary. Every startup is different. Every program is different. Find smart people and surround yourself with them.”
Certainly, before joining an incubator or accelerator, thoroughly review all the advantages and disadvantages of the specific program to determine if the time spent in that program will be beneficial for your business.
To make your search for incubators easier and save time, we provide a list of active incubators in the Republic of Croatia. If you would like to be added to this list, please contact us via form on our website.
Business and startup incubators in Croatia:
AlgebraLab
City: Zagreb
Address: Ilica 242
Website: https://www.algebra.hr/lab/
BIOCENTAR – incubation centre for biosciences
City: Zagreb
Address: Borongajska cesta 83 H
Website: www.biocentre.hr
BIOS d.o.o. Osijek
City: Osijek
Address: J. J. Strossmayera 341
Website: www.inkubator.hr
CTT
City: Zagreb
Address: Ivana Lučića 5
Website: www.ctt.hr
ENTER
City: Koprivnica
Address: Dravska 17
Website: www.enterkoprivnica.hr
Industrijski Park Nova Gradiška
City: Nova Gradiška
Address: II Industrijski odvojak 2
Website: www.ipng.hr
Impact Hub Zagreb
City: Zagreb
Address: Basaričekova 11
Website: zagreb.impacthub.net
Inovativni Zadar – Inkubatori Bili Brig i Novi Bokanjac
City: Zadar
Address: Grgura Budislavića 99
Website: www.inzad.hr
KASPI Poduzetnički inkubator
City: Kastav
Address: M. Marjanovića 1
Website: https://kaspi.hr/en/
Poduzetnički inkubator Virovitičko-podravske županije – Mreža inkubatora
City: Virovitica
Address: Ulica Poduzetnička Zona II 18
Website: https://inkubatorivpz.hr/
NUQLEUS
City: Zagreb
Address: Unska 3
Website: https://nuqleus.io/en/home/
OSVIT
City: Donji Miholjac
Address: Industrijska zona Janjevci 21
Website: www.osvit.biz
Poduzetnički centar Krapinsko-zagorske županije
City: Krapina
Address: Bobovje 52 G
Website: www.poduzetnickicentar-kzz.hr
PISAK
City: Sisak
Address: Capraška ulica 12
Website: www.pisak.biz
PISMO Incubator
City: Novska
Address: Trg Luke Ivića Oriovčanina 8
Website: https://inkubator-pismo.eu/
PLINK
City: Pleternica
Address: Ante Starčevića 35
Website: www.plink.hr
PODI Šibenik
City: Šibenik
Address: Velimira Škorpika 17b
Website: www.podi-sibenik.com
Poduzetnički centar Pakrac d.o.o.
City: Pakrac
Address: Zona Male Privrede 5
Website: www.pc-pakrac.hr
POLET
City: Belišće
Address: Željeznička 10/a
Website: www.polet.com.hr
Pozudeznički inkubator Klis
City: Klis
Address: Iza grada 4
Website: www.pi-klis.hr
Poduzetnički inkubator Hubbazia – centar za inovacije u turizmu
Grad: Opatija
Adresa: Ul. Vladimira Nazora 2
Website: https://hubbazia.opatija.hr
Razvojna agencija Split – RaST d.o.o.
City: Split
Address: Dračevac 3D
Website: https://agencija-rast.hr/
Riječka razvojna agencija PORIN
City: Rijeka
Address: Ul Milutina Barača 62
Website: www.porin.hr
Tehnološko-inovacijski centar Međimurje
City: Čakovec
Address: Bana Josipa Jelačića 22B
Website: www.ticm.hr
Tehnološki centar Split
City: Split
Address: Kopilica 5
Website: www.tcs.hr
TEHNOLOŠKI PARK BJELOVAR
City: Bjelovar
Address: Trg Eugena Kvaternika 6
Website: www.tpbj.hr
Tehnološki park Varaždin
City: Varaždin
Address: Zagrebačka 89
Website: www.techpark.hr
Tehnološki park Vinkovci
City: Vinkovci
Address: Vatrogasna 5
Website: www.tp-vk.hr
Tera Tehnopolis
City: Osijek
Address: Trg Ljudevita Gaja 6
Website: www.tera.unios.hr
UNIST TEHNOLOŠKI PARK
City: Split
Address: Matoševa 56
Website: www.unist.hr
Virtualni inkubator za poduzetnike Ivanec
City: Ivanec
Address: Trg hrv. ivanovaca 29b
Website: https://vip-ivanec.biz/
ZICER
City: Zagreb
Address: Avenija Dubrovnik 15
Website: www.zicer.hr
Are you representing an incubator and need help organizing an incubation program? Or are you a startup founder looking for an incubation program? Contact us to find out how we can help you achieve your goals.
