For us at Cobuild Lab, working in Tech means working in the future and so it is for many entrepreneurs who have ridden the wave of opportunities that the digital transformation has brought. And it’s exactly why we created this segment in our blog called “Miami” where we like to highlight some of the most relevant startups in the city. Whether you’ve been here before or you’re a new reader, we warmly welcome you to this entrepreneurial journey.
Since Cobuild Lab sponsored the Startup Bootkamp
(a workshop that is made for aspiring to pre-seed entrepreneurs who are looking for early-stage guidance) for the second year in a row, we noticed that there are a lot of talented and brilliant people out there trying to make it through in this entrepreneurial world, they’ve got groundbreaking but they just don’t have enough insights of what it’s like to build a startup and what it takes to make it come to life and be successful.
The program is designed to give entrepreneurs tremendous insight into the world of startups, venture capital, and entrepreneurship, sharing amazing strategies for their businesses and highlighting the most common mistakes made in the early-stages and how to avoid them. Through this experience, we’ve come to the conclusion that we all dream of a picture-perfect business and most of us as entrepreneurs and business creators are way too optimistic about how easy it is to get customers, but we don’t really enjoy taking a step back and look at the big picture when it comes to failure.
Let’s talk about failure...
mentions in his bestseller ‘Rich Dad Poor Dad’
’, that rich people play to win and poor people play not to lose. This means that we have to learn to let go of the fear of failure and start enjoying the process because the things you learn from failure stay with you for life. Embrace failure, learn from it and keep going.
But why do companies fail?
One of the main reasons companies fail is because they are faced with the problem that there is little or no market for their product, either because their value proposition is not compelling enough or maybe there's no right timing with the market. Perhaps the product doesn't meet the needs of the market.
The second reason why new businesses and startups fail is that they run out of cash, and it's all due to a bad management team. Now, what usually goes wrong here and leads to a company running out of cash and unable to get more is that its managers have not managed to meet the requirements to get some money from an investor before running out of it. Of course, it's still possible to get money, but the valuation will be significantly lower. Incubators are excellent tools to boost the creation of companies, as they provide the necessary assistance to grow.
WHAT IS AN INCUBATOR?
A business incubator is an organization designed to accelerate the growth and consolidation of companies in their early stages by providing them with a wide range of resources and business services that may include consulting from the initial phase of the project, offering a physical space, legal, financial and accounting guidance, coaching and in some cases promoting contact with potential investors by providing access to a network of contacts.
INCUBATOR vs ACCELERATOR
An incubator aims to support the emergence of new businesses by collaborating with their growth, minimizing the risk of failure, and thus ensure the success of the most innovative projects. There are several kinds of incubators, some of them can be focused on a specific market niche, but they usually cover all kinds of projects. Accelerators are dedicated to accelerating a project that is already under development. The purpose of this action is to obtain real benefits as soon as the company goes to market.
Story short: Incubators help to create companies. Accelerators, on the other hand, are fed by existing companies to which they offer support for growth.
THE INCUBATION PROCESS
When you access a business incubator, your project goes through three stages:
Pre-incubation: The first phase of the project is dedicated to conceptualize, define, and realize the business idea. At this point in the process, the incubator helps to validate the viability of the project. In addition, the advice is provided in the process of creating a business plan and develops strategic planning processes. Throughout the pre-incubation, there is constant feedback between the entrepreneur and the advisor to make a good business plan.
Incubation: The project is launched and the business plan is developed, and of course the incubator provides all the necessary assessment for its success. The companies will receive all the necessary support for its proper functioning throughout the entire incubation process and managers will attend constant training programs as well so they can grow their businesses more independently. This is where you can actually tell which projects are thriving and which, if they don't adapt and change, will have no future.
Post-Incubation: Once the whole project has been developed and put in motion, the time has come for the business to become independent. The monitoring and control phase begins. The consulting work continues now in more specific issues since the business is already in operation. Constant improvement is the goal now.
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