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Business Incubator Blueprint: How to Open a Business Incubator and Maximize Revenue

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Who are you serving? What is your purpose? What impact do you want to create? What stakeholder commitments need to be considered? ESTABLISHING YOUR MISSION


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What do you want your program to be known for? What are your differentiators? *Equity vs. no equity *Services *Industries Where do you want to be after 1 year? 5 years? 10 years? VALUES & GOALS


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Size reflects transitional space but offers expansion capabilities Flexible and collaborative areas Sensitive to security and IP concerns Technological infrastructure to minimize cost for a startup FROM 30,000 FEET


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Technology / software: Office space, server room, modern and collaborative environment Biotech / medical device: Wet labs, specialty equipment Clean / renewable energy: Hybrid office and/or lab space; additional light manufacturing NEEDS BY INDUSTRY


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Leveraged existing feasibility studies and needs assessments Labs equipped with commercial-grade hoods and furniture Additional specialty bio equipment that can be shared and reused LABS & EQUIPMENT


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FLOOR PLAN


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Evaluate criteria based on goals and mission: * Job creation, growth potential * Coachable entrepreneurs * Intellectual property * Alignment with resources * Number of founders * Experience of entrepreneur(s) Incorporate multiple checkpoints APPLICATION & SELECTION


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Gap analysis | resource alignment IP analysis | business model validation Coachable | consistent with mission All of the above EIR / Business Counselor Mentors and Partners Executive Director Selection Committee


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Evolves as your program, entrepreneurs and expertise changes Assist entrepreneurs through process, but allow independent approval APPLICATION & SELECTION


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RESIDENT CLIENTS Company-specific roadmap for growth Monthly, quarterly business counseling Daily hallway conversations Access to 40-50 specialized mentors Discounted 3D printing and design 24/7 access to office and/or wet lab space (at below-market rent) Partner services (HubSpot, AWS) Access to investment and partner network


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AFFILIATE CLIENTS Company-specific roadmap for growth Monthly, quarterly business counseling Access to collaborative, cowork space Access to 40-50 specialized mentors Discounted 3D printing and design Partner services (HubSpot, AWS) Access to investment and partner network


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EDUCATIONAL OPPORTUNITIES Programming for CLIENTS (economic impact) and the COMMUNITY (public visibility and lead generation) Leverage skills and expertise of leaders across the globe Seminars, workshops, retreats, meet-ups, and others


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Partnerships with like-minded organizations to host workshops * State/government * Corporate partners * Entrepreneurial supporters * Meet-up groups Consider discounted or free access for clients to “external” events EDUCATIONAL OPPORTUNITIES


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EDUCATIONAL OPPORTUNITIES Student business incubation program (virtual or physical space) High school entrepreneurship * Tie with STEM initiatives * 3D printing and coding * Entrepreneurship primer


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BUSINESS COUNSELING Core of traditional incubation program Onsite professionals are vital for daily and weekly needs Beware of “mixed messages” Consider different stages of development


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Monthly Quarterly Tactical Immediate challenges Status check Meeting program requirements Strategic Goal setting Overall business traction Major pivots BUSINESS COUNSELING


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MENTORSHIP Support business counselors 2-3 in each major expertise and/or industry: * Marketing * Manufacturing * Finance * Regulatory | government


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MENTORSHIP Mutually-beneficial arrangement: MENTORS build new client relations and increase community exposure ENTREPRENEURS receive pro bono consulting and discounted services INCUBATORS gain network of specialized expertise and support


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METRICS TO MEASURE Clients Incubator Job creation *FTE *Part-time *Contract *Interns Revenue Investment (equity, grants) Partnerships / Sponsorships Occupancy rate PR visibility and social growth Educational opportunities offered


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COMMUNITY PARTNERSHIPS HUGE differentiator Helps create “patchwork” quilt of the entrepreneurial method Local, national and international opportunities Helps advance startup ecosystem and incubator positioning


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COMMUNITY PARTNERSHIPS Economic development: City of Phoenix, Arizona Commerce Authority Incubators, accelerators, cowork spaces: Seed Spot, CO+HOOTS, AzBIA Industry-specific: AZBio, Flinn Foundation, Clean Tech Open Corporate: SRP, Dignity Health


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STRATEGIC PARTNERS AND SERVICES Discounted services * HubSpot Jumpstart program * Amazon Web Services Strategic guidance, expertise * MediCoventures * Dan Tyre, HubSpot * Legal firms, Ron Kisicki Community college resources * Business, entrepreneurship faculty * Operations support (Facilities, IT) * Student internships


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Access to capital investment * VA Angels * Arizona Tech Investors * Desert Angels Pre-incubate, post-graduate * Selection committee: mentors | incubation leaders | industry experts * Graduation partners: Discovery Triangle STRATEGIC PARTNERS AND SERVICES


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STRATEGIC PARTNERSHIPS Small Business Development Center (SBDC) * Early support and staffing * Dedicated business counselor * Network of business analysts * Additional programming and workshops * Student incubator operations Learn more: www.slideshare.net/ceigateway/pioneering-partnerships-with-your-local-sbdc


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STAFFING NEEDS Strategic vision | partnership development Client business strategy and development Day-to-day accountability Executive Director Entrepreneur-in-Residence Business Counselor(s)


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Operations management | reporting Public visibility | client lead generation Reception | administrative support Coordinator Marketing Specialist Office Assistant Support marketing and operations Interns


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THE BUDGET Invest in people first and build a great team Balance your expenses with client receivables and other revenues Reinvest gains into the program * New positions * New services


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REVENUES EXPENSES Facilities Operations Marketing Expansion Program Fees New revenue streams Sponsorships Grants


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MARKETING SERVICES Overall brand development Inbound marketing: content-driven, lead generation Website: optimize for user, platform for fresh content, mobile-friendly, opportunity to showcase sponsors Public relations


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MARKETING SERVICES Client-related services: Revenue Non-revenue Video production Graphic design Photography Mentorship Brand development Social strategy Event sponsorships


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NEW REVENUE STREAMS 3D printing center Competitive Intelligence Lab CLIA Lab Equipment rentals


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STARTUPLABS 3D PRINTING CENTER


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COMPETITIVE INTELLIGENCE LAB


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CLINICAL LABORATORY IMPROVEMENT AMENDMENTS (CLIA) LAB


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SPONSORSHIPS/GRANTS Value-based (Friends of CEI) vs. Real-estate (conference rooms) Corporate incubation opportunities Numerous grants available for ongoing operational expenses and expansion efforts


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ADVISORY BOARD Vet the strategic direction of incubation program Source for eventual succession planning


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OUR BEST PRACTICES Your mission is your FOUNDATION that should guide every aspect of your incubator DESIGN A FACILITY that is flexible and tailored to serve diverse entrepreneurs Your program is your DIFFERENTIATOR – layer it with multiple services and partners


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OUR BEST PRACTICES STAY RELEVANT for your entrepreneurs and in the marketplace, but don’t pivot just to make a change Validate your STRATEGIC DIRECTION regularly with key stakeholders BE CREATIVE with your staffing, your marketing and new revenue-generating opportunities


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MORE RESOURCES NATIONAL BUSINESS INCUBATION ASSOCIATION: Best practices for incubator programs and managers | nbia.org OTHER INCUBATION PROGRAMS: * Reputable * University & Higher Ed models * Community-based GRANT OPPORTUNITIES: Economic Development Administration | SBA Accelerator Fund | Coleman Foundation


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LEARN MORE susie.pulido@maricopacorporate.com @mcorcollege | @ceigateway maricopacorporatecollege.com | ceigateway.com


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