The Icehouse business incubator

Everything about The Icehouse business incubator is cool.

The office space could be out of a design magazine, its branding is slick and the management team use designer Ipac computers.

This is exactly the type of environment you would expect to find humming with new "start-up" businesses.

Chief executive Andrew Hamilton quickly strips away any romantic notion of starting up a business that lets you retire by 30.

Andrew recognises that the dotcom crash "reasserted the fundamentals of business".

The myth that building a business happens overnight is quickly dispelled.

In fact, it will take applicants at least eight weeks just to get through the application process.

If approved - and "the criteria is rigorous" - then you will spend between 12 and 24 months in The Icehouse getting your business up and running.

"There is a rich vein of talent out there, but there is a lack of know-how when it comes to growing business," says Andrew.

The Icehouse is committed to work with businesses during this critical period to develop sustainable growth.

Raising venture capital is often seen as a major part of this process. But Andrew is cautious when it comes to raising venture capital in the initial stages of business.

"As soon as you sell a part of your business and you've got someone else saying, 'what's happening, how are sales this week?' life changes."

If the business is prepared for this stressful step, The Icehouse's role is to work with them as they go through the process.

Businesses need to be well prepared, as raising venture capital usually takes about 12 months.

The Icehouse recognises "improving business capability" as critical in the path to success.

This can be done in several ways, including planning business strategies and building a strong management team.

Mentoring is crucial.

The Icehouse is partnered with several key corporations to ensure top-quality mentoring in each area of business strategy.

These include legal and intellectual property advice from Chapman Tripp, audit, tax and financial advice from Deloitte Touche Tohmatsu and strategy advice from The Boston Consulting Group.

Andrew also feels that incubators in NZ have to work together. Such cooperation will lead to more successful young New Zealand businesses.

"Incubators need to have a speciality and share the knowledge."

The Icehouse is focused on businesses that have the goal of eventually expanding internationally.

Overall, Andrew says, incubators - if structured correctly - will have a macro effect on the knowledge wave.

He is interested in "how we can make a profound effect on the economy."

For Andrew, the knowledge wave is a value chain that includes institutions, incubators, venture capital and management consultants.

If these areas are built up entrepreneurs will be successful.

He recognises that there has been a shift toward an entrepreneurial focus in NZ, but says it is the fundamental structural issues that NZ has problems with.

"We must change the mindset to celebrate success."

The Icehouse approach incorporates acceleration (incubation), education, research and networks.

Starting a business in the garage or in the spare room is a common NZ pastime.

Incubators can help these businesses to get the fundamentals right and dramatically increase growth.

"[An incubator] provides the true test. Rather than doing it in the weekends, at night and maybe on the boss' time, they're now doing it for real ... the game starts."

The Icehouse started up in August.

It now runs three businesses from its Parnell premises and plans to have eight before December.

For more information contact The Icehouse on (09) 309 9712.

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