Start-Up Financing 87 services can be quite costly to the firm. Incubators can frequently get group rates for many of these services that can bring down their price and make them affordable to the business owner. In addition to providing their own money, incubators can help entrepre- neurs find additional funding. Insight into how and where money can be ob- tained on terms favorable to the entrepreneur is a main reason many individuals contact an incubator. Incubators also tend to know many wealthy individuals or angel investors who may express an interest in investing in the venture. Incubators can provide much more than money to a firm. They offer busi- ness advice on many levels. They have had a hand in growing many businesses, and they are very knowledgeable about the challenges that often arise. They have lots of experience to share with entrepreneurs on how to grow their busi- ness, make it self-sustainable, and make it profitable. The voice of experience can be just as valuable as the services and capital that an incubator brings to the firm, if not more so. As a result of years of helping small businesses grow, incubators are able to build up an impressive list of contacts. An incubator can introduce the en- trepreneur to a large number of individuals who may be beneficial to the com- pany. People who are well versed in a specific industry, can provide technical assistance, create and maintain strong supply chains, provide funding, and offer any number of value-adding insights can help a start-up take off. Information on a number of business incubators is given in Figure 4-5. University and Private Incubators Many universities have established business incubators, both to foster entre- preneurship and to assist in the "birthing" of new businesses and ideas. These incubators offer shared resources, on-site advisors, cooperative research and development, and the natural synergies of having entrepreneurs with different ideas all at the same venue. A more recent trend is the "private incubator," often established by cashed-out entrepreneurs who offer their expertise as well as the physical facilities to foster business growth and development. Advantages of Business Incubators · · Greatly increase the likelihood of survival for start-up firms Create jobs in the community, helping to retain individuals who might otherwise leave the area because of lack of job opportunities American Management Association www.amanet.org