Incubation Ideation for Start-ups

Start-up journey

Various Stages of Incubation for Start-ups are given as following:

• The Pre incubation Stage
• The Idea Stage
• The Seed Stage
• The Early Stage
• The Growth Stage
• The Expansion Stage
• The Maturity Stage
• Exit
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Ideation is the process of coming up with an idea. It is using creativity and questions like “What if?” to imagine ways something can be done differently. The ideation stage is critical to ensure that you are generating good ideas from the start. It involves seeing problems and opportunities, brainstorming around the problems you identify, and doing research to test your assumptions about the market, your customers, and your idea.

Refining that initial idea involves assessing the market, looking at trends, and asking questions (and more questions) — and learning from potential customers, investors, and research whether your idea is a good one. The design process consists of a series of steps to test assumptions and ideas. Ideation falls within a larger design process that begins with understanding who you are serving; empathizing, understanding, and defining the needs of that target audience; then ideating around what is needed.

Incubation Phase

At the end of the pre-incubation period, entrepreneurs who complete the business plan and are ready for incorporation, start the incubation phase. During the incubation period, entrepreneurs continue to need physical facilities and training, consultancy and mentoring services, similar to the pre-incubation phases. These needs of entrepreneurs are met while in the incubation center. The length of the incubation period varies between 1-3 years depending on the sector of the enterprise. Startups that take longer to obtain certificates and patents in sectors such as health, food, etc. spend longer incubation periods than software companies.

Entrepreneurs set up their companies at the incubation stage and produce their minimum viable product. At this stage, the technical support that entrepreneurs need, especially when developing products, are provided by incubation centers. After the product is developed, the commercialization of the product, which is one of the most difficult stages of the enterprise process and management, begins. The main reason why this stage is difficult is that commercialization efforts are costly. Due to the costs incurred, the financing needs of companies increase and they need to find new supports. This process can work differently depending on the sector the entrepreneurs are in or the product they develop. For example, licenses and certificates create serious costs for entrepreneurs in the health field.

It is easier for startups to receive investments from angel investors and venture capital funds during the incubation phase compared to the pre-incubation process. Incubation centers support companies in their investment search processes by organizing meet-ups, demoday events, so that their companies are visible and find investments.

In our country, there are many incubation centers supported by the state or private sector and the number of these centers is increasing day by day. ODTÜ ATOM incubation center, Boğaziçi HayalEt incubation center and TEB enterprise house can be considered as good examples for incubation centers.

Entrepreneurs who stand out with their business plans and the capabilities of their teams and who have high awareness of the functioning of the entrepreneurship ecosystem can skip the pre-incubation stage and settle directly in the incubation center.

Acceleration Phase

Acceleration is the process in which the problems of companies that have created their products, have started commercialization studies but have difficulties in gaining market share and globalization and these problems can be solved with the help of acceleration programs during this phase. The concept of acceleration can be considered as a new model for the entrepreneurship world. The first acceleration program in the world was Y Combinator, which was established in 2005 and is still working. It is not correct to describe it as a continuation of the incubation phases because it is a new model and constantly renews itself according to the needs of entrepreneurs. Acceleration programs are quite different from pre-incubation and incubation processes. Institutions that organize the program usually restrict the duration of the program to 6-12 months and want all companies to start the program at the same time. Thus, all companies participate in the same trainings and events at the same time and appear before investors at the same time. This situation ensures that competition and interaction between companies is high.

Since the products of the companies participating in the accelerator programs are ready and commercialization studies have started, these companies usually start to earn income. In addition, since it is possible to compare the sales, turnover, profit, etc. expectations of the company with the realized values at this stage, these companies attract the attention of venture capital funds and angel investors. Private companies and funds not only invest in accelerator companies, but also often organize acceleration programs. Bayer and Türkiye İş Bankası acceleration program (WorkUp) are examples of these companies.

To sum up, Entrepreneurs differ from hierarchically structured private institutions that make slow decisions with their innovative business ideas, fast and flexible structures. Because of these features, they are in an important position both economically and socially. Therefore, it is very important that the entrepreneurs are supported by the state and the private sector according to the stage they are in, namely, the business plans, the status of the product they have developed, their commercialization status, etc. When startups get the necessary support, it can be a very profitable investment for their investors. Because of these, the budgets and numbers of both the entrepreneurship ecosystem and pre-incubation, incubation centers and acceleration programs will continue to increase, thus their importance in the economy will increase even more.

Business Model Incubation

The incubation team plays a leading role in guiding innovation teams through ideation challenges which aim to solve specific business challenges or customer problems. We nurture ideas that have the potential to create entirely new revenue streams for De Beers Group by creating new products for existing or new markets.

We also support innovation teams to take their most promising ideas through the process of problem/solution and product/market fit validation. We ensure that critical assumptions are validated, allowing us to either build greater confidence at speed and lower cost, or to “fail” fast and early if critical assumptions prove to be invalid. Initiatives that demonstrate product/market fit are launched and supported with the appropriate go-to-market strategies as they scale through rapid revenue growth and reach full sustainable potential.

New business model initiatives currently in our portfolio range from direct to consumers retail ventures, breakthrough digital platforms like Tracr, to game-changing technology for our diamond manufacturing customers, and innovative industrial solutions for the civil engineering and construction industries.

How do you know if your good idea is the next big thing? Whether you are an Entrepreneur, working within an existing business, or an entrepreneur looking to create a business startup, or a student creating an idea for a class project, this question is the one that should drive you to find answers. Unfortunately, it is not a question that can be answered on its own.

It takes answering a bunch of other questions of your potential customers, of your own motivations, and of your idea as well. Two key qualities required to begin this journey include curiosity and creativity. As a communicator or a student at a mass communication program, you should already possess an innate curiosity about people, storytelling, and problem solving. Creativity is a skill that can be cultivated as an individual or as part of group or team exercises, to develop unusual connections, breakthroughs in processes, or insights that lead to product development. Often, the journey to a good idea begins with asking “What if?”

Disclaimer

 The author assumes no responsibility or liability for any errors or omissions in the content of this article. The information contained in this article is provided on an ‘as is’ basis with no guarantees of completeness, accuracy or relevance. Any similarity with any other published article may just be a coincidence.