Starting a business is hard. With all the cost and risk involved one can get discouraged in creating a business plan. In light of this, the concept of “business incubators” has been gaining popularity.
Haven’t heard of a business incubator before? It’s a place that offers low cost shared or private office space, administrative services, and sometimes education in management or small business oversight. Using a shared space allows business owners to worry less about their physical space so they can focus on building their business or establishing a client base. Business incubators often open the door for people to start a business with less risk and more reasonable overhead costs.
Business incubators have also been shown to help businesses be more successful. According to statistics pulled from Forbes online, “Incubated businesses have an 87 percent survival rate, and 84 percent go on to do business in their local regions. The NBIA (National Business Incubator Association) also posits that the public subsidy per job created by incubator companies is around $1,100, versus $10,000 for other publicly supported job-creation programs.” Which means it’s good for the business, the community and local government as well.
There are both not-for-profit and for-profit business incubators. Government subsidized and non-profit incubators have been put in place to create jobs and encourage small business growth and economic diversification. The for-profit business incubators also succeed in accomplishing those goals but are not financially backed by the government or a non-profit organization.
Either way, it’s an opportunity for communities to create an environment that fosters growth and business retention. It is also a great way for start-up companies and entrepreneurs to get on their feet in a business community with other folks that may be experiencing the same situation they are facing.
If you didn’t already know, Lompoc has one of these business incubators: The Launch Pad, located at North H Street in the Northside Shopping Center. If you or someone you know is looking for resources to help them build a successful business plan, consider looking at their website (lompoclaunchpad.com).
Small businesses located at this incubator range from realtors to attorneys to nutritional therapists. The benefits of working in a business incubator such as the Launch Pad include saving on overhead costs as well as being in an environment where other businesses may be growing and lifting off.
Awareness of the resources available here in Lompoc helps us grow and improve as a community. We have the power to help keep businesses local. Don’t let your friends go uneducated about the assets available in their own backyards. Show Lompoc some love and talk about what we have to offer.
To stay updated on the EDC’s progress throughout the year like the “Lompoc Economic Development Committee” page on Facebook.