To Incubate or Not to Incubate, That is the Question

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Very successful entrepreneurs who used technology to ride and propel the success of their companies for the past 150 years did not need incubators. Thomas Edison did not need an incubator. Henry Ford did not need an incubator. L. B. Meyer, Jack and Harry Cohen and Joe Brandt, did not need incubators. Bill Gates did not need an incubator. Or did they?

Companies, which began in the garage of the family home or on the back of a table napkin during the last century, did have incubators although they were not exactly called that at that time. Entrepreneurs raised money, tested technology used off the shelf hardware combined with innovative techniques. They have thrived and survived by their own wits and business dealings. They packaged finance deals recruited CEO’s. CFO’s COO’s. Developed marketing plans and grew their ideas. The real change is time to market.

No longer can a great idea or concept for a Company take years to develop. Trial and error and time to perfect a great idea will leave the entrepreneur in the dust watching another Company or individual succeed. Perhaps the pressure to “go to market” has always been a driving force, but in today’s Internet economy it is more than a force it is the difference between success and failure.

URL=Ubiquity now, Revenue Later.

For the start-up Company as well as the existing “brick and mortar” Company looking to become a “click and mortar” Internet Company, First to Market advantage is crucial. The advantage of time that the Great entrepreneurs of the last 150 years had is not available in today’s “Internet time” race. The idea is to claim a market space, build a brand, and launch a Company get national recognition in a nanosecond.

So how does the guy with a great idea or the successful Company without an existing Internet presence accomplish this? Looking for help from a successful incubator is one way. Whether it is office space, back office support, packaging finance, key personnel, marketing plans or leveraging investor relationships and past success; an incubator is essential to the current Internet strategy.

EBay, and other successful Internet ventures needed incubators in today’s marketplace to gain the financing and get the market share that they currently enjoy. It is almost impossible to accomplish the sheer number of tasks that need to be accomplished in the time frame available today. Traditional Companies have always used lawyers, agents, accounting firms, consulting companies and other services for many years. The needs of the “new economy” require these services. But the needs of the new entrepreneur are perhaps slightly different and require an even greater specialization and knowledge.

Jerry Brandt is Director of KPMG’s Digital Media Incubator.

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