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What is a business incubation?
According to the National Business Incubation Association (NBIA):
Business incubation is a dynamic process of business enterprise development.
Incubators nurture young firms, helping them to survive and grow during
the startup period when they are most vulnerable. Incubators provide hands-on
management assistance, access to financing and orchestrated exposure to
critical business or technical support services. They also offer entrepreneurial
firms shared office services, access to equipment, flexible leases and
expandable space -- all under one roof.
An incubation program's main goal is to produce successful graduates
-- businesses that are financially viable and freestanding when they leave
the incubator usually in two to three years. Thirty percent of incubator
clients typically graduate each year. According to the Impact of Incubator
Investments Study, 1997, 87% of incubator graduates are still in business.
What is the BTC?
The BTC is an incubator for technology-based start-up companies. We provide
affordable office space, wet lab space and high manufacturing areas. We
have an experienced staff to guide you in all areas of business creation
and development. We have the knowledge and resources to help you build
your business into a successful company.
Our technology focus area include: bioscience, medical devices and diagnostics,
information technology and advanced materials.
The BTC houses offices, labs, wet labs, conference rooms and other necessities
for emerging businesses.
Where does BTC get its funding?
The BTC receives operating support from Ohio's Thomas Edison Program and
its partner organizations, OMERIS and Ohio's IT Alliance.
OMERIS is dedicated to building and accelerating the development of the
bioscience industry in Ohio. Innovative bioscience companies revitalize
Ohio's economy while developing critical tools, treatments, and technologies
that benefit the world.
Ohio's IT Alliance focuses on growing and improving the competitiveness
of Ohio's information technology industry, insuring that Ohio's IT resources
are shared, leveraged and optimized for the benefit of the entire industry.
In addition, the BTC derives income from its client companies (tenants)
that pay near market rates for space within the BTC and supporting administrative
services. These revenues fully fund the operation of the BTC facility,
allowing grants from the state and partner organizations to be invested
in client assistance, business development and access to capital functions.
Why do so many small businesses fail and how can an incubator
help?
According to the SBA, 50% of small businesses fail in the first three
to five years. Studies show that the top two reasons for failure are management
inexperience and insufficient capital. Other reasons small businesses
fail include:
- Inadequate planning
- Lack of market knowledge
- Failure to seek the advice of a professional
- Lack of financial planning and review
- Owners concentrating on tactical instead of strategic issues
Business incubators work with entrepreneurs to abate risk, to solve problems
faster, to shorten the learning curve, and to improve their likelihood
of success. And it works! According to a Dept. of Commerce study, 87%
of all small businesses who had been through a business incubator were
still in business after 5 years!
Why do so many small businesses fail and how can an incubator help?
According to the SBA, 50% of small businesses fail in the first three
to five years. Studies show that the top two reasons for failure are management
inexperience and insufficient capital. Other reasons small businesses
fail include:
• Inadequate planning
• Lack of market knowledge
• Failure to seek the advice of a professional
• Lack of financial planning and review
• Owners concentrating on tactical instead of strategic issues
Business incubators work with entrepreneurs to abate risk, to solve problems
faster, to shorten the learning curve, and to improve their likelihood
of success. And it works! According to a Dept. of Commerce study, 87%
of all small businesses who had been through a business incubator were
still in business after 5 years!
How much does it cost?
Clients pay a low, affordable monthly fee. For more details, please see
our “Facilities” page
How do you help entrepreneurs?
BTC provides strategic guidance, access to investors, mentors, and a ready-made
network of contacts, help in building the management team, specialized
training, affordable space, and professional services at reduced rates.
For more information about services, please see the "Facilities"
page.
Do I have to move into the incubator?
BTC has both resident and non-resident clients. Non-residents, or affiliates,
are companies who need strategic guidance and business assistance, but
do not need space. However, past clients have told us that there is great
benefit to being resident in the incubator, where you can share experiences
and problems with fellow entrepreneurs. Sharing approaches and solutions
to problems can be a great help. Lots of this sort of information gets
shared around the coffee pot and break area every day. In fact, entrepreneurs
have told us that being inside the incubator "lessened their fear
and anxiety." They realized they were not alone.
How do I apply?
Click here to see our Getting Started form.
Where is BTC located?
Housed within a state-of-the-art 60,000-square-foot facility, the BTC
sits in the heart of the Science and Technology Campus (Scitech) at The
Ohio State University. For directions please see
“contact us”
Can you help me with my business plan?
BTC has resources available that can help you with your business plan.
How do I know if I am qualified?
The following questions need to be answered and provided to the BTC for
consideration as a client. It is important that the summary be no more
than three pages in length.
What we do:
Provide a description of the business proposition (the range of products
and services). Describe the significant problem that your business addresses.
How we do it – What makes us Unique:
Describe the key differentiating factors of your business that will
allow you to gain, sustain and grow a market position (what’s
your unfair advantage).
How we make money
Describe the revenue model for the business. Provide details of the
primary revenue source and mention others if appropriate.
Who we do it for:
Describe the market, the purchase decision makers in the market, the
sales and distribution channel(s), and the sales cycle. Insure that
the information is specific to your business opportunity vs a generalization
of the industry.
How large is the market opportunity?
What is the size of the specific market and how much can you expect
to capture annually over the next few years.
What are the competing solutions:
Describe the alternative products and suppliers that offer your customers
a solution. Describe how your solution is superior to the competition.
When can we expect to be successful?
Describe the major milestones and challenges for developing the business.
Who we are and our strategic partnerships:
Describe the principle participants in the business and the positions
that need to be filled. Also describe any strategic relationships with
partners or customers who will cooperate with you in the early stage
of the business. If you have not developed any partnerships, describe
who you will pursue and why.
What we need to be successful:
Describe what you feel is needed to meet the business objectives.
Where is BTC located?
Housed within a state-of-the-art 60,000-square-foot facility, the BTC
sits in the heart of the Science and Technology Campus (Scitech) at The
Ohio State University. For directions please see “contact
us”
How long does a company stay in the incubator?
Affiliation with the BTC is on a year-by-year basis, with a three-year
limit.
What are the requirements to "graduate?"
These guidelines frame the expectations regarding length of occupancy
of tenants of the Business Technology Center. BTC is intended to serve
as an interim facility to assist technology-based businesses in the early
stages of development. The BTC must balance its desire to provide each
tenant with sufficient resources to permit business success with the need
to provide as many entrepreneurs as possible with an opportunity to incubate
their businesses. BTC will deal with each tenant’s situation in
a flexible manner and retains the right to consider extenuating circumstances
in each case.
We have an expectation that science and technology-based companies will
require incubation periods of 3-5 years while companies in more market
sensitive industries may require only 1-3 years. This is true because
the former have longer product development cycles resulting from the need
for clinical evaluations, field trials, regulatory approvals, etc.
During the period of residency in the BTC, we will apply a process which
continually monitors the tenant’s progress against its business
plan and assists with certain matters of business development. This includes,
but is not be limited to:
- A quarterly business reporting system of goals and performance against
goals including historical and pro forma financial statements.
- Assistance with identification and creation of a business advisory
board within the first 18 months of residency.
We recognize that a company’s business plan is a dynamic document
that is continually changing. The Tenant Committee will formally review
each company’s business plan at least once annually in order to
determine how the BTC can be of continuing assistance to the tenant.
Preparation for graduation will normally occur at the end of Year 2.
At this time, both parties will work to develop milestones, a timetable,
and a list of action items that will enable the tenant to make a smooth
transition from the BTC.
As the time for graduation approaches, BTC will assist in the relocation
process by introducing the tenant to appropriate facilities and sources
of support, such as Scitech, commercial realtors, the Greater Columbus
Chamber of Commerce, etc., along with City and State economic incentive
programs.
At the end of the fifth year of occupancy, the BTC may grant an extension
for an additional year, if there are extenuating circumstances that would
indicate that a company’s chances of viability would be significantly
enhanced by remaining in the incubator.
If an additional extension is requested by the tenant beyond the sixth
year, approval by the Board of Directors will be required.
How can the Incubator Program help my company?
The BTC provides managerial and technical assistance, low office rental
rates and shared access to basic office services and equipment. These
services are designed to enable entrepreneurs to minimize the initial
high costs associated with setting up the necessary facilities, equipment,
and services for a successful business venture. With a nurturing environment
already in place, entrepreneurs can devote more of their time to successfully
developing their technology into a commercially viable business venture.
The BTC offers an array of services and business support systems designed
to increase the probability of success:
- A nurturing , entrepreneurial environment for promising new economy
startups
- Everything you need to get your business started
- Facilitates access to facilities and equipment otherwise unavailable
or unaffordable
- Access to world class expertise and research in diverse disciplinary
areas
- Expert mentoring from seasoned entrepreneurs and experienced management
- Operational and strategic consulting tailored to a company's needs
and stage of development
- Access to business, university and economic development resources
- Administrative support services
- Additionally, tenants have access to conference rooms, shared office
equipment including a copy machine and fax, an employee break room,
and full access to the Incubator staff for any counseling and technical
assistance they may need.
What are some of the current start-ups involved the Incubator
program?
For a complete listing of our Clients and Tenants and a description of
their businesses, visit the Client Webpage
What kind of internet access is available?
As a client of BTC, you will have access to T1’s and fiber lines
with a minimum speed of 100 Megabit.
Are wet-lab facilities available in your facility?
Yes. The BTC has 16 wet laboratories.
Can I rent conference rooms from the BTC?
Yes. Click here to view our conference rooms.
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