A1. The greatest advantage of small business incubation is potential for success. While only 50-60% of companies that “Go It Alone” are still in business after three years, 87% of small businesses starting in an incubator environment are still in business and growing after five years.

A business incubator exists for the sole purpose of nurturing and supporting a start up or existing small business through the early stages of growth when they are most vulnerable and most likely to encounter serious challenges.

Being in a facility focused on your success, surrounded by others you can turn to when problems arise, and having easy access to experienced professionals and a network of counselors and mentors is a tremendous advantage to any venture as they face the day-to-day issues inherent in business.

Another key success factor is that small businesses go through a rigorous vetting and selection process to get into an incubator and they are accountable to incubator management and advisers for achieving business and financial goals. This level of commitment and ongoing scrutiny and course correction makes the small business much more attractive to lenders and investors who may be vital for success as the business continues to grow and looks for capital.

A2. Business incubation can be an excellent way to establish and grow a business that needs professional office facilities to conduct business and meet with prospective customers.

The BDC is ideally suited for Clients & Associates who serve customers out in the community and at their places of business. Examples of very good business models for incubation would include web design, software development, janitorial services, medical billing & coding, outbound counseling and consulting, engineering and design, test & calibration, call center operations, computer networking, market research, accounting and auditing services, eCommerce, and various light assembly operations.

The BDC would not be a good fit for a business with heavy inbound traffic, such as a retail business, a counseling service, manufacturing, food services, social services, or any business scheduling continual incoming customer activities.

A3. Application to the UCP Business Development Center is open to any new or existing small business meeting the general criteria and requirements of the facility, without regard to age, gender, nation of origin, race, religion, or any other factors related to the applicant(s).

A. The business must be a for-profit entity established to provide products and/or services to be marketed and sold to produce taxable revenue and are expected to create new, good paying jobs in the community and region.

B. All applicants must provide an acceptable, completed business plan and provide financial information regarding the principals of the business and the expected sources of funding for establishing and growing the business.

C. Principals of the business must show or demonstrate reasonable ability to self-fund business operations for at least 12-months.

D. Applicants must be legal residents of the United States and admission is also subject to an acceptable credit history and criminal background check.

E. The business must be appropriate to the facility and must agree to conduct its business and day-to-day operations in a manner that is legal, ethical, and moral, and not disruptive or inconsiderate of other Client companies.

F. Principals must agree to quarterly Open Book Accounting reviews with BDC management and/or Advisory Council members.

G. Clients are required to attend monthly one-hour group meetings on various business topics, or to discuss issues of general business interest, or to listen to guest speakers.

H. There will be a mandatory semi-annual Business Plan review to discuss progress to plan and consider possible course corrections or modifications.

I. Graduate companies agree to provide annual updates on revenues, taxes paid, jobs created, and average salaries (to be used to assess BDC economic impact over time). All such information will be treated in strict confidence and reported only in the aggregate and not by individual entity.

A4. A Client company is allowed to remain in the Business Development Center for up to three years, which is considered a reasonable and adequate timeframe for developing the business and establishing a strong customer base. Leases are renewable on a year-to-year basis, so long as it is deemed to be in the best interests of the Client, the BDC, and the Community for the business to remain in incubation.

Clients may be encouraged or required to leave in less than three years if, for example, they were to grow faster than expected and “outgrow” the incubator, be acquired or invested in by an entity enabling the business to succeed without further incubation, or the nature of the business were to change in ways that made it no longer suitable for the BDC facility.

In rare occasions, a Client may be allowed to stay longer than three years if, for example, some unique circumstances made it clear that additional time in incubation would best serve the business and the local economy.

A5. We know that cash is critical to any startup or existing small business, so we bundle our facilities and services into a simple monthly lease model that is affordable for most prospective Clients.

The basic monthly lease includes the office space, telephone and Fax, high-speed Internet, receptionist to receive visitors and answer incoming calls, and use of all meeting space on a scheduled basis.

Among the items not included in the basic lease that will be billed additionally:

A. Long distance calls are billed at cost each month. (Local calls are free)

B. The Copy Center is available to all Clients and Associates at a nominal per copy fee to recover BDC costs for the machine and supplies.

C. Clients typically prefer to bring in their own office furniture and fixtures.
However, furniture may be rented from the BDC (if available) for a fee. Furniture can be purchased on behalf of the Client, with the cost recovered as an additional monthly fee. All furniture or fixtures provided through the BDC are the property of and remain with the incubator.

D. Meeting space is available on a first come/first served basis at no additional cost. However, any expenses for rentals, set-up & take down labor, event services, catering, clean up, etc. will be additional.

E. Secretarial and other support services, beyond those generally provided or intended in the lease, may be arranged or scheduled at an hourly fee.

F. Any specific or unique requirements of a Client or Associate (i.e. special equipment needs, construction and upfitting, wiring/piping/venting, etc.) are the responsibility of the Client, and require approval of management.

A6. Counseling and Advisory services are required because that is arguably the most important aspect of being in an incubator environment, since it provides a sounding board for discussing business issues that arise and establishes a routine for ongoing conversation that’s helpful in growing a business.

While “required,” the counselor/advisor can be any of a number of individuals the Client feels most comfortable with and the discussions can be very informal over coffee or lunch, or scheduled meetings, according to your preference.

Along with BDC management, other advisors might include members of the BDC Advisory Council, the Wilson Community College Small Business Center Director, a SCORE counselor, or another partner organization to the BDC.

A7. Every quarter, a Client is required to meet with BDC management for a review of progress against the Business Plan and their business objectives. This review will include an open look at revenues, projections, margins, cash flow, working capital, debt load, sources of funds, staffing, expenses, etc.

This confidential financial review is intended to help determine the businesses performance to plan, assess market and business realities, and help in making suggestions and recommendations for future growth, application of resources, and possible course corrections or alternative actions.

It is only possible to understand the current condition of a business and make a reasoned assessment of its future prospects by looking at its financials and comparing them to the business plan and genera economic/market realities.