Why incubators fail to support startups
As incubators They represent the principal entity sought by startups. These have various services to help entrepreneurs achieve success. Yet, startups still complain about the lack of accessibility of services. So, why incubators fail to support startups?
Contextualization of search
The number of startups Portugal and Central Europe has increased in recent years. Several entrepreneurs with a vision of the different common market see opportunities and initiate their projects. In order to support these startupsEither at the beginning or during its course, there are various types of support and many service companies (technological, financial, marketing, etc.). However, there are still many gaps in these services aggregation and modulation of any business.
With this knowledge, two questionnaires were developed, one for startup and another for incubators. First, the objective was to identify the main difficulties encountered by startups in Portugal, throughout its life cycle. In the second case, the objective was to understand the role of incubators in creating startups Portuguese.
After analyzing the results obtained in the questionnaires, we can say that the needs of startups are not being fully satisfied by the entities to which they seek some kind of support.
The following chapters present the main shortcomings of the services provided by incubators considering the main needs of startups.
Incubators are a true paradise for startups?
Analysis of results
First, the results obtained in this investigation were analyzed individually. Thus, this section provides a comparison of the data collected in order to identify the reasons why incubators fail to support startups.
Phase harder vs phase with more support
Comparing the most difficult phases with the phases with the most support, we encounter significant coherence. In general, incubators tend to pay more support in the phases where startups have more difficulties.
As startups consider the product development, O market launch and the Company foundation as the phases with more difficulties. Likewise, the incubators provide more support na Company foundation, no product development and on ideation and concept.
Thus, the detected fault is in the market launch and in this, the incubators pay less support.
Phase ideation and the concept
Regarding the phases of a startup, we encounter relevant inconsistencies. That is, the areas where startups claim to have more difficulties obtaining help from external entities are the same as the latter claim to be the main services provided to startups. With this, we can conclude that despite the efforts made by the incubators to support the best possible startups, these are not enough.
However, some discrepancies are also observed in relation to certain services necessary for the proper functioning of the startups and the respective priority level given by incubators. This may be one of the reasons why incubators fail to support startups.
In phase ideation and concept, we verified the inconsistency referenced earlier. That is, the services how the creation of the financial plan and the analysis of the product's feasibility are those that startups more difficulty have in getting support. However, they are also one of the main services provided by incubators.
Likewise, in the cost and duration estimates and finding business partners, they also reflect the previously mentioned discrepancies.
With the startup advisory service, we will help entrepreneurs to establish their businesses beginning with a deep market analysis and a good structuring of business plans and financial.
Phase firm foundation
In the second phase, the issue of obtaining incentives or funds is highlighted. That is, it is the largest difficulty what startups have in getting support and the main service provided by incubators.
Despite the efforts made by the entities to provide the maximum support financial, this is not enough. At incubators are aware of this problem as they seek establish partnerships mainly for financing purposes. However, the accessibility level of these services presents itself as one of the lowest.
With this, we can say that the problem is not essentially found in the services the incubators itself, but rather of services contracted externally by them. So, this may be one of the reasons why incubators fail to support startups.
Of corporate identity Phase
As startups don't find big difficulties in this phase, in comparison with the other phases. However, we were able to verify that there are discrepancies between services most wanted and most supplied by incubators.
Thus, the incubators focus more on the elaboration of corporate identity and design. In addition, they also provide support in the development of the landing page.
On the other hand, startups feel more difficulty in the elaboration of a styleguide, corporate identity and design and in the development of the landing page.
As good design is the first step towards the recognition of the company, The IT Factory provides a comprehensive service that covers the development of the brand until the creation of web design and graphic design to convey your vision, mission and values, considering the psychological aspect to create more impact on the user.
Product Development Phase
O product development is one of the most important phases for a startup. With this, it is also one of the phases where they feel more difficulties. In addition, there are several discrepancies and inconsistencies in the responses to this investigation, alluding to this phase.
As incubators focus their services at a later stage of development itself. That is, with the testing of the product and its adaptation to the feedback received in these tests. On the other hand, startups feel more difficulties in a phase prior to this, more specifically, in the acquisition of professionals and in the definition of functionalities.
Thus, these inconsistencies reveal some reasons why incubators fail to support startups. A possible justification for these results is that the services referring to this phase are provided by other organizations.
When checking which are the main entities where incubators looking establish partnerships we note that the second position is occupied by partners with development skills. With this, we can conclude, once again, that the problem is not essentially found in the incubators itself, but rather of services externally contracted For these.
In The IT Factory will find a team of professionals ready to develop your product as envisioned. We offer a wide range of web and mobile solutions that cover all the performance and scalability requirements for performance and growth ideas.
launch phase in the market
Finally, in the last phase, the market launch, to main difficulty felt by startups is attracting and attracting customers.
A percentage of incubators doesn't follow your startups in this phase, that is, they finish their program of support in the phase prior to this. However, the other percentage continues its support and it turns out that there is a high level of looking for partners with marketing skills. So, these services are focused on an initial phase, disregarding in a way services more specific and focused on achieving the defined objectives.
As a good and effective marketing is critical to the success and recognition of the developed product, The IT Factory has a team of professionals in maketing branch where together, targets will be set and various actions will be taken to promote your product or service using the various channels and online platforms.
Accessibility of external services
As incubators apply efforts to provide services quality to startups but they also feel certain difficulties in hiring these services external.
The services from product development, financing and legal advice are those with the lowest level of accessibility. That is, this may be one of the reasons why incubators fail to support startups.
general challenges of life cycle
Finally, in the final analysis we have the main challenges faced by startups throughout its life cycle.
The biggest obstacle of these is the time spent in contact with different entities. Next is time management. With this, it is possible to determine that time is a very important factor considered by startups.
The main characteristic of these is their associated uncertainty, hence they are considered as a high risk entrepreneurship, that is, time is money, hence the importance of good time planning.
final conclusions
After analyzing the results, we can conclude that it would be really advantageous for the startups if they managed to acquire services in one entity. That is, all services from the business plan to fundraising, from product development To your market launch.
This concept would allow for better management and use of time as it would not be necessary to spend time in contact with multiple entities. Likewise, it would also increase the level of reliability between the company and startup since the partners would always be the same. Thus, the concept of a single point of contact (communication established only by the general responsible for the project, without excluding the possibility of expert communication for more technical information) would be very important. There would be centralization of communication preventing important data from being lost. This increased productivity and agility in solving problems.
In addition, there would also be better time management as there is no need to speak to multiple individuals or entities. Thus, providing follow-up on services provided by only one company since the most initial phase, allows a better integration of the idea and strategies to be adopted. Greater respect for the concept of startup by the company would be guaranteed, and the entrepreneur and his business idea would always come first.
Another important aspect to overcome bad time management would be flexibility in the allocation of hours in services. In other words, the entrepreneur decides which features of his product the work team would dedicate more time to. Combined with this aspect, total transparency would allow the entrepreneur to have real-time access to the status of the project. The advantages of this concept focus more on greater control over the startup by the founders and consequently, greater satisfaction.
How can we help you?
In short, with the support of a good work team and their sources of support, the startups can see their business being carried out effectively. Which goes with the vision of The IT Factory.
With us, you will find a team of professionals from the most diverse areas, committed to providing services quality focusing on the customer. Whether this be startups, through personalized follow-up and aimed at the entrepreneur to his needs, whether it be incubators, in order to establish partnerships with the objective of filling the gaps in the services current.
Make your dreams come true.