Category Archive: Incubator

1. Business Succession Planning:

   It’s Never Too Early to Start!

   By: Eric Treworgy 

   If you own a business—or are thinking about starting one—you’ve probably envisioned what life will look like when it’s time to retire. But for many small business owners, planning an exit strategy is often put on the back burner until the moment they’re ready to sell. Unfortunately, waiting too long can lead to disappointment when a business broker reveals the market value of the business—sometimes far less than expected. At that point, owners face two choices: spend a few more years optimizing operations to increase value or sell for less than they had hoped—just when they were ready to enjoy that long-awaited cabin by the lake.

   The Reality of Business Sales

   The statistics can be discouraging: only 10-20% of small businesses listed for sale actually sell. The rest are often forced to close, selling off physical assets instead. But you don’t have to be part of that statistic. With the right preparation, you can make your business attractive to an outside buyer—or even transition ownership to your employees.

   What’s Ahead

   Over the next few months, I’ll introduce key concepts to help you successfully plan your business transition. Topics will include:

   • The most important factors that determine your business’s value
   • Different ways to sell or transition your business
   • How to get started with succession planning

   Key Questions to Consider for Succession Planning

   To start thinking about your business transition, ask yourself these important questions:

   1. Retirement Readiness – Have you budgeted for retirement, and do you have a financial goal for selling or transitioning your business?
   2. Your Role After Transition – Do you want to stay involved in some capacity, or are you ready to fully step away?
   3. Legacy and Community Impact – Is maintaining your business’s role in the community important to you?
   4. Understanding Your Business’s Financial Health – Do you have a clear picture of how much your business contributes to your personal finances (Seller Discretionary Income)?
   5. Potential Buyers – Have you identified any businesses or individuals who might be a good fit to take over?
   6. Financial Documentation & Transparency – Are your financial records clean, organized, and able to show consistent income? If you’ve been under-reporting income, are you prepared to adjust your strategy to maximize your business’s documented earnings?
   7. Operational Independence – Have you trained your staff to run the business without you? If you took a two-week vacation, could the business operate smoothly in your absence?

   A Final Thought: Selling to Your Employees

   One option you might not have considered is selling your business to your employees. Employee ownership is a growing trend, and there are innovative financing options available to make this transition easier.

   Planning ahead gives you more control over your future and ensures that your business continues to thrive. Start thinking about your succession strategy today — you’ll thank yourself later!

   About Eric Treworgy

   

   Eric keeps an office at URCI and is a business advisor for Coastal Enterprises (CEI) in Brunswick, Maine. He has more than 35 years’ of entrepreneurial experience and specializes in business start-up, strategy, sales and marketing, retail, food and beverage, computer software, and operations management. Through CEI, Eric offers free confidential business advising to help navigate the start-up process, your succession planning, and everything in between.

2. 5 Ways Business Incubator Programs Can Help Your Startup Grow

   As you develop your new company, there is no doubt that some business resources may be hard to come by. Managing your financial projections and everyday accounting (especially in the pre-revenue stage), creating a business and marketing plan, and hiring your first employees will likely take up the majority of your time as a startup founder. Tasks like booking and setting up a meeting space, finding an office or laboratory space, and planning your business growth can all be either maintained or assisted by a business incubator. Consider these five other ways business incubators can help your startup grow: 

   1. Business Coaching Services

   Business coaching sessions are often included in business incubator memberships to help entrepreneurs and business owners identify their company’s strengths and opportunities for improvement. Having a clear picture of what your business is doing well, as well as what you work on, can also give you a good idea of how competitive your business is in its market, and how it stands apart from its competitors.

   At Union River Center for Innovation, we offer monthly business coaching sessions that are customized to your business’s unique and individual needs, so you can create goals and track and build on your progress. Not only do our business coaching sessions focus on your business progress as a whole, but they are tailored to individual fields of business that you may not have experience in, like human resources, marketing, accounting, and financial analysis. While you are the expert in your field, let our business experts coach you on how you can succeed in all of the facets of business that you may be less familiar with, giving you the opportunity to grow a strong and prepared company.

   2. A Supportive Community of Entrepreneurs

   While the old saying, “you are the company you keep,” may not always be true, it reminds us to surround ourselves with the positive influences we need to keep our businesses running. Often, in business incubator programs you can find just that — positive and experienced entrepreneurial connections that can help you grow and maintain your company!

   Business incubator programs help your business thrive in a supportive, community atmosphere, where you are surrounded by like-minded entrepreneurs in similar growth stages. This gives you and your associates the opportunity to brainstorm and converse with other business owners from a variety of fields, backgrounds, and industries. You never know what great ideas they’ll come up with, and you can even do the same for them! The surrounding community of professionals may even have networking connections or business affiliations that they could connect you with. Working in close proximity to a community of businesses helping one another succeed is what makes business incubators stand out among other resources or programs!

   3. Administrative Resources

   Incubator programs often offer additional amenities and administrative resources to let entrepreneurs focus on their business growth goals. These could include reception services, printing and mailing, or others.

   This includes the Union River Center for Innovation! Leave the printing, mailing, and reception duties to us, and spend your valuable time focusing on growing your business. URCI’s business incubator program includes complementary printing, mailing, and reception services, in addition to high-speed internet access and free coffee and tea for all incubator tenants. The ability to focus on tasks like hiring team members, pursuing investors and funding, and researching and developing new products will help your business grow, especially with a small (or one-person) team!

   4. Access to Entrepreneurial Networks & Funding Connections

   Especially while your business is seeking funding or investors, you’ll want to spend time networking and building relationships both locally and regionally to expand your business’s awareness, funding, and connections. Many incubator programs are government funded or owned by private sector business developers or development companies that have access to a multitude of business and funding connections. Some incubators may even have agreements, affiliations, or programs in partnership with funding or business development organizations that can connect your company with grant applications, funding opportunities, or potential investors. Access to the entrepreneurial connections available through the vast networks of incubators and their affiliated organizations could even help you procure business partners or clients! The opportunities for positive business connections are endless.

   5. Facility Amenities & Office Space

   Business incubators are often equipped with everything you need to run your business comfortably from that facility. This includes the vital office and meeting space needed to secure investors, conduct your product development and research, meet with potential clients, and grow your team. In addition to the traditional office spaces available in most incubators, Union River Center for Innovation also offers a coworking space and an outdoor working space on the scenic Union River waterfront. URCI’s community lab space even allows entrepreneurs to continue their research and development in the same facility that they work in, meaning less travel time and less time spent managing locations.

   With so many resources, amenities, and growth programs available to emerging startups and entrepreneurs, it can be difficult to decide which are the best options for your company. If you have a collaborative spirit and a drive to grow your business, an incubator may make sense for your business!

   If your company is interested in joining a business incubator, reach out to Union River Center for Innovation today to learn more about our programs and amenities, like printing/mailing/reception services, office space, coworking space, conference room rentals, business coaching, free seminars, and more.