Business mentor: Incubators add to your bite

A year ago, I started a small business which I think has the potential to be a really big business. However, I work from home and know that I don't have all the skills or the capital that will be necessary to realise my company's potential. I'm not sure where to go for help, what can you suggest?

Small business sector specialist Sarah Trotman asked AUT Technology Park chief executive Jonathan Kirkpatrick for some advice:

Many small business owners find themselves isolated and lacking the necessary skills and resources to grow their businesses.

Business incubators are collaborative environments in which entrepreneurs can grow their businesses, levering off a range of value-added services the incubator provides.

At the AUT Technology Park, this ability to leverage is increased by the presence of university research scientists and stand-alone businesses alongside the incubated start-up businesses, providing a continuum of activity through all the phases of technology transfer from the scientist's bench to the market.

There are 16 business incubators spread throughout the country.

Most incubators are designed to grow companies that have high-growth potential and typically include help and coaching in:
* Management.
* Marketing.
* Product development.
* The identification and protection of intellectual property.
* Governance.
* Professional services such as legal/financial advice.
* Export readiness.
* Investment readiness.

Some incubators are industry specific, specialising in areas such as fashion, information and communications technology (ICT) and bio-technology. Specialisation enables the incubator to build up a body of expertise around industry-specific issues.

While there is no set time limit on the incubation process, the average would be some time between two and three years.

AUT has designed a tailor-made, rapid-growth programme that, like a strategic plan, is a management tool for steering and growing the business.

Graduation from the incubator occurs when it can add no more value to the business; this often coincides with the firm growing significantly in the number of employees and/or receiving significant external investment.

Incubators monitor and assess the growth of their companies. At AUT, an advisory board undertakes a three-monthly review of its incubated businesses.

The rapid growth programme might include mentoring with Technology Park staff, scientists and others who can help with product development and external experts.

Given the small size of the New Zealand market, it is important for any company with high growth potential to move into overseas markets as quickly as possible.

Incubators can help with this by helping their companies take advantage of opportunities such as the NZTE beachheads initiative.