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Kitchen Incubators: What They Are & Why You Might Use One

Kitchen incubators can be a way for small food businesses to access commercial kitchen equipment and business advice in one location.

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The early stages of business development or expansion can be an exciting time, but also a challenge. Perhaps you’ve got a great idea for a food business, but you’re finding it difficult to come up with startup capital or find a suitable facility. And if you don’t want to go it alone, how do you find a place with business guidance or peer networking in addition to kitchen space?

A kitchen incubator could be an option.

The kitchen incubator—sometimes called incubator kitchen or food incubator—involves shared commercial kitchen space that’s typically rented by the hour or by the month. The idea appeals to a variety of small business owners and aspiring business owners, whether they’re startups honing their vision or more experienced entrepreneurs who are trying out a new idea and want to mitigate their financial risk.

Read on to find out more about how a kitchen incubator works.

What Is a Kitchen Incubator?

By definition, a kitchen incubator offers users a kitchen space as well as access to professional development and business advice—a reflection of the word “incubator” in its name. Kitchen incubators typically include access to packaging equipment as well.

Primary services include access to space and equipment; information about business planning, marketing/advertising, distribution, regulations, food safety, and access to capital; and business assistance, including technical assistance with certifications, product development assistance, and connections to buyers and consumers. Of course, your access to and the quality of these services is dependent on your continued paid membership and the expertise of an incubator’s staff. That can make a more formal education, like you could get from Escoffier, a more reliable route to gaining the skills and knowledge you need to run a business.

Kitchen incubators are different from ghost kitchens , which are shared kitchen facilities whose purpose is entirely devoted to space and equipment but not to business development. Ghost kitchens tend to focus on or appeal to businesses doing takeout and delivery orders, and may house multiple businesses or just one. These more established companies may not have as much use for the business development services an incubator can offer.

Incubators also differ from accelerators, which typically appeal to larger businesses and offer startup capital in return for future equity in a company.

In practice (and on Google), the term “kitchen incubator” is often blurred with other phrasing, used interchangeably with the terms shared-use kitchen, shared commercial kitchen, cloud kitchen, and commissary.

Findings from January 2020 report: “U.S. Kitchen Incubators; An Industry Update”

A January 2020 industry report on U.S. kitchen incubators grouped them in the “shared use food facility” category, adding that kitchen incubators “offer business incubator services to provide startup food businesses with professional development and training.” The report surveyed shared kitchen operators in 2019 across the U.S.

• 82% of respondents to the survey said that supporting entrepreneurial success made up at least a part of their primary mission.
• 30% of respondents said that business incubation was a primary function of their facility.
• Incubated businesses have more than double the success rate compared to businesses without incubation after six years in operation.
• Three-quarters of respondents had less than 30 members or tenants, with a typical range between 10 and 19.
• 52% of facilities can accommodate between one and four users at a time, while 18% can accommodate between five and 10, and 20% can handle more than 25 at a time.

The curriculum includes training on business planning concepts, and you’ll receive feedback on your idea from an Escoffier instructor with a professional perspective on food startups and business operations.

A professional or commercial kitchen can provide space and equipment an aspiring entrepreneur might otherwise lack.

Kitchen Incubator Example: Hudson Kitchen

Djenaba Johnson-Jones opened Hudson Kitchen in Kearny, New Jersey, in 2019. The 8,000-square foot space boasts a commercial kitchen, storage, and co-working facility, and its website says Hudson Kitchen has generated $9 million in revenue and created 58 jobs.

Members pay a flat fee and are allowed short-term commitments of 6- or 12-month contracts. They have access to the communal kitchen, office and storage space, and dedicated food truck parking.

Hudson Kitchen also offers support to register with the FDA, USDA-Meat Inspection, and Organic Certification; 1:1 mentorship sessions; and discounted educational workshops. The food incubator also boasts access to Consumer Packaged Goods (CPG) industry providers and highlights the opportunity for members to work alongside other CPG teams.

Hudson Kitchen’s membership fees include $850 a month for a food truck membership; a Part-Time membership starting at $1,600 a month for nights and weekends access; and a VIP Access membership starting at $2,500 a month that offers access at any time and any day. Members reserve time slots for areas of the kitchen.

Who Uses a Kitchen Incubator?

A food incubator can appeal to a variety of businesses, most notably packaged food businesses and food trucks . These incubators can help mitigate the costs of a commercial kitchen facility and provide business owners with a space that meets legal standards and regulations. All food businesses need licenses and permits —even if you operate out of your home, you’d pursue a cottage food license—and incubator kitchens can help small food businesses understand and manage all that paperwork.

A food truck owner may need to do their prep work somewhere other than inside the truck.

The 2020 report on kitchen incubators says most tenants or members sell produce locally at farmer’s markets, small grocers, and community events, and that 52 percent also sell online. Ready-to-eat and baked goods are the most popular items.

Here’s how various businesses might use an incubator kitchen:

Food Truck Operator

In many states, a food truck operator may need to prep items ahead of time because of laws that prohibit them from doing prep inside their trucks. Even without the legal restrictions, a food truck is such a small space that it makes sense to prep as much as possible beforehand, in a larger area.

Food truck operators might also need the storage space and extra equipment that wouldn’t fit in the vehicle.

Get the Essential Guide to Starting a Food Truck

See how you can kickstart your food venture on wheels and explore how to manage expenses, craft a menu, and boost your visibility!

Packaged Food Business

A number of moving parts come into play in a packaged food business, from the culinary side to packaging, sales, and delivery.

Your specialty foods business might be larger than you can handle at home, and a food incubator might offer the commercial cooking and packaging equipment you desire, without the need to buy them yourself. Packaged food business might include baked goods, meals, or your own patented food product .

Personal chef

A personal chef provides food to multiple clients, and a commercial space with storage might be a solution to the space and equipment they need.

Access to an incubator might also provide networking opportunities to find new clients because you’re surrounded by a variety of other people also running food businesses.

Similar to the challenges a personal chef or packaged food business might encounter, a caterer might outgrow their space at home in a hurry, but not yet be ready to afford a commercial space.

They might need the kitchen space and equipment, storage, and a place to park and load their vehicle. The community of other business owners might also present an opportunity to work together; a caterer might need additional help or might consider showcasing another business owner’s food.

Get the Guide to Starting a Home-Based Catering Business

Launching a home-based catering business can open the door to a fulfilling career. Grasp the fundamentals to start, from licenses and permits to essential marketing strategies.

Bakery Owner

It can be daunting to open in a physical location, with startup costs ranging from $50,000 to six figures. The bakery equipment alone can run $25,000.

A kitchen incubator might be a good way to test ideas and recipes without the long-term capital investment. And packaging equipment could come in handy here as well.

Online Business

A shared commercial space might work well for someone selling food products online who needs equipment, space, and packaging materials. Mentorship and networking can potentially be beneficial for a style of business in which people often go solo and might benefit from interactions they wouldn’t otherwise encounter.

How Do You Find and Use a Kitchen Incubator?

Because there is no single organization or entity that oversees kitchen incubators, your first step is likely an online search to find out what your state offers and to get educated about regulations. You can also ask around. The Agricultural Marketing Service within the USDA reports that 45 percent of participants they surveyed found shared kitchens through word of mouth.

A search for “food incubators” plus your state can be a good start. For example, a search for food incubators in Colorado shows a number of results, including Comal in Denver, a small incubator that focuses on supporting immigrant and refugee women, and Salad Ground Kitchens , a larger organization that operates three commercial kitchens in the Boulder and Longmont areas.

The USDA offers a pdf titled, “Things to Consider When Deciding to Use a Shared Kitchen,” and the Association of Food and Drug Officials website has a page on Incubator Kitchens Laws and Guidance .

Some other considerations:

• Spend time reading through the information regarding available spaces, and be sure you understand local, state, and federal laws and regulations about food safety requirements related to your business. Also review any mission statements to understand the kitchen incubator’s intended clientele and basics, like whether it’s a for-profit or nonprofit entity.
• Take a tour of the space and meet the owners.
• Think about your goals. Do you need business guidance or just a kitchen?
• Review your business plan and factor in your time and expenses.
• Fill out any required applications and/or other documents. Many or most incubators have an application process, and they may require you to carry insurance. Salad Ground Kitchens requires users to complete a food safety course as well.
• Get your ingredients and materials together and start creating!

Find Out More About Starting a Food Business

It’s simultaneously exciting and nerve-wracking to start or expand a business, but you don’t have to go it alone. Escoffier’s online Food Entrepreneurship programs can provide you with the skills and experience you may need to prepare for careers starting or running small food businesses.

Contact us today to discover more about our offerings and how you can build your knowledge of industry best practices in a flexible, interactive learning environment!

WANT TO KNOW MORE ABOUT FOOD ENTREPRENEURSHIP? READ THESE NEXT:

• The Ultimate Guide to Starting a Home-Based Catering Business
• 5 Skills Every Food Entrepreneur Should Have
• Is Culinary School a Trade School?

**”Figures included in this article are for informational purposes only and are estimates based on industry trends or a range of costs/expenses. Please research costs for your geographic location and individual situation.”

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Commercial Kitchen Program

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The Business of Food

Since 2002, the Commercial Kitchen Program has assisted culinary professionals realize their dream. By providing a low-cost, full-service kitchen space, we eliminate the need for small businesses to take on the debt of purchasing expensive equipment or signing a long-term lease. Instead, culinary entrepreneurs can focus on building a sustainable and profitable business.

Our Kitchen is open to:

• Food Trucks
• Food Producers/Packagers
• Other food related businesses

About the Commercial Kitchen Program

Our Commercial Kitchen Incubator Program is a community of startups and seasoned food entrepreneurs. We provide 24/7 access to commercial equipment, production workspace, cold and dry storage, and industry specific business support and guidance.

Access to free business coaching and low-cost business classes

Assistance with registration & licensing process

24/7 access with secure entry system

Food truck/trailer parking with plug in capability

Access to a large variety of commercial equipment

Walk-in refrigeration and freezer

High-speed WiFi within the kitchen

Opportunity to learn and network with other food entrepreneurs

“I enjoy being able to use a commercial kitchen that has the capability to handle the needs of my growing business. I also appreciate the opportunity to consult with the Incubator staff and learn and share knowledge with other caterers and food trucks that use the kitchen.”

– John Young, The Ribber

HOW TO JOIN

Application process.

There is an application process to join the Commercial Kitchen Incubator Program including the submission of a business plan and 6-month projected cash flows. Our Small Business Development Center offers free business coaching and low-cost classes to assist with the business planning and cash flow process.

Program Requirements

Prior to acceptance into the program, businesses must meet the following requirements.

• Certificate of Good Standing from the Colorado Secretary of State

Business must be licensed with the Mesa County Public Health Department , CDPHE, and FDA (as applicable)

Proof of Certified Food Protection Manager Certification for one owner

• Provide $2M general liability insurance policy

Program Fees

Our straightforward monthly kitchen fees makes it easy for businesses to manage their expenses.

• $45 application fee
• $200 refundable deposit

$50 monthly program fee

$14 per hour kitchen use

Extra equipment, such as refrigerators, may be rented at an additional cost.

Ready to get cooking?

Call the Commercial Kitchen Program Manager at 970.243.5242 or email [email protected] for more information.

Helpful Resources

Business Plan Template

Cash Flow Template

Food Entrepreneur Resource Guide

Retail Food Safety (Mesa County Health Department)

Mobile Food Vendor Info (City of Grand Junction)

How to Start a Food Business (FDA)

Commercial Kitchen Program Business Directory

2022 Food Truck Workshop

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• February 20, 2020

Kitchen Incubators: A Growing Industry Embracing Tech and Supporting Food Entrepreneurs

• Ashley Colpaart

Kitchen incubators and shared kitchen facilities are in a state of rapid innovation, evolution, and growth. It’s an exciting time for an industry facing tech disruption and increased media attention.

In January 2020, The Food Corridor , in partnership with Econsult Solutions , Urbane Development , and Catharine Street Consulting , published an exhaustive report providing a snapshot of the shared food facility landscape in the US. 

The report documents the results of a 2019 survey of shared kitchen providers and looks at what the results mean for the industry. It’s especially interesting to see how it has evolved over recent years, as the report compares the results of the 2019 survey with similar surveys conducted in 2013 and 2015. 

The results reveal certain trends and areas for improvement, including the impact of growing food delivery platforms, diversity of food entrepreneurs, and a focus on mission-driven initiatives.

Overall, the industry is in a position of economic strength and growth. Going forward, efforts are being made to foster a network of shared kitchen providers, tenants, and other industry players, and to formalize and legitimize the industry in the eyes of investors. 

Let’s take a closer look at the findings and what this suggests for the future of the shared commercial kitchen industry over the coming years.

What Have We Learned?

The kitchen incubator industry in the US continues to provide a supportive infrastructure for small businesses and food entrepreneurs. Many businesses are community-focused and mission-driven with the industry supporting a mixture of for-profit and nonprofit organizations.

Food business entrepreneurs looking for access to kitchen space tend to lack support and resources that are typical pathways to success. 82% of respondents to the 2019 survey said that supporting entrepreneurial success made up at least a part of their primary mission. 

Key players are engaged in an effort to help immigrant, refugee, and women entrepreneurs to overcome hurdles to success. 30% of respondents in 2019 said that business incubation was a primary function of their facility. Incubated businesses have more than double the success rate compared to businesses without incubation after six years in operation. So it is vital that this trend continues.

The pooling of knowledge, support, and resources as businesses come together in shared kitchens is another key benefit. Along with access to community support, cooperative purchasing power, and accelerating paths to market within a shared space, this creates a business cluster, which not only benefits its members but the wider community, through support for the local economy.

Increasingly, food businesses are using tech for support with organizational tasks, reservations, and management of shared kitchens. 81% of respondents said they used some form of software to take reservations. This marks a shift from 2015 when most said they used phone or email. The Food Corridor is identified as the market leader, with 23% using its software to take reservations.

The Numbers at a Glance

Of the more than 600 shared kitchen facilities operating in the US, 180 responded to the 2019 industry survey, providing key data points and highlighting emerging trends and opportunities to improve the impact and collective understanding of the industry. Here’s a summary of the data collected in ten categories and how it compares to the data from surveys conducted in 2013 and 2015.

Location and Context 

The 180 respondents to the survey came from 44 states, with just over half in urban areas and a further quarter suburban. Incubators are concentrated near major cities – the fifteen cities with the most incubators make up 42% of the total. The top five – New York, San Francisco, Seattle, Chicago, and LA – account for 24%. 

The regional distribution is fairly even, with slightly more in the South (31%), Midwest (26%), and West (26%), than the Northeast (18%), largely due to the concentration around major urban centers.

Characteristics 

Over half of the respondents stated that the primary goal of their operation was assisting early-growth businesses. While a majority of operators remain for-profit, less than 9% cited a primary objective of making money, compared to 17% in 2015.

Shared-use kitchens remain an emerging phenomenon, with 40% established since 2015 and two-thirds since 2010, indicating strong growth in the sector. It appears that the role and mission of shared kitchens can evolve over time with a number of respondents saying that their primary goals had changed since they opened.

Financial Status 

This section explores the viability of operators and showed that most respondents are financially stable but a greater proportion in 2019 also experienced financial losses. 69% of incubators have seen an increase in revenue over the last three years. However, this percentage declined from 82% in 2015, while the proportion saying revenue either declined or stayed the same during that period increased. Since the 2013 survey, a growing number of respondents said they are profitable, while there was also an increase in the proportion losing money.

60% of non-profit incubators have received grant support, for both capital and operating costs, slightly down from 70% in 2015, while only 5% of for-profits have. Grant sources range from federal schemes to local initiatives.

Facilities 

The majority of facilities are considered small, operating in less than 5,000 square feet of space, with almost half under 3000 square feet. Just 21% of spaces are over 10,000 square feet. The spaces are well-equipped, with flexible/event space, dry and cold storage, classroom space, scientific/testing labs, packing rooms and space for food production for lease or rent. 

Kitchens take up 48% of the space on average. In terms of accommodating specialist production, vegan food production was most commonly accommodated, at 25% of all facilities, while gluten-free and delivery-only were joint second on ~19%.

Operating Model 

The survey asks respondents about all aspects of operations, including staffing, costs, and revenue streams. In general, operations are very lean and budgets modest. Most shared kitchens report few, if any, full-time or part-time employees and over 94 percent of facilities are run on a budget of less than $500,000 and 57% on under $100,000.

The highest proportion of operating costs goes on rent and salaries, with utilities, insurance, maintenance and debt servicing taking up the majority of the remainder of operator budgets. Unsurprisingly, leasing shared space is by far the biggest revenue source for shared kitchens, at an average of 63%. Leasing permanent space was the next biggest single revenue source, while other revenue came from renting event and storage space, and classes or training.

Members/Tenants 

Three-quarters of respondents have less than 30 members or tenants, up from 67% in 2015, with the median at between 10 and 19. 52% of facilities can accommodate between one and four users at a time, while 18% can accommodate between five and 10, and one-fifth can handle more than 25 at a time. 

The vast majority of tenants (80%) stay for more than one year, with 14% staying for more than three years. At 68%, a majority of respondents said their membership numbers had increased in the last year, although this was down from 84% in 2015. Although growth is not as rapid, the survey suggests it is sustained as 91% say it has not decreased.

On average women make up 53% of tenants while people of color average 30%. However, respondents in larger metropolitan areas reported higher proportions of tenants who are people of color. Facilities located in the Greater New York metro area reporting on average 57%.

45% of respondents cited business closure as a frequent reason for tenants leaving a facility. However, 42% also cited moving to a brick-and-mortar location which suggests their time at the incubator was successful.

This section asked about what is being produced and through which channels it is being sold. Ready-to-eat and baked goods are the most popular and data suggests room for capturing more online and foodservice business. Most respondents reported that their tenants or members sold produce locally at farmer’s markets, small grocers and community events. Although 52% also sold online. 

The 2019 survey suggests a shift towards foodservice and delivery-only kitchens, with 28% and 26% respectively saying they rented space to tenants for this purpose. This emerging ‘ghost kitchen’ sector took a significant percentage off the other categories compared with the 2015 survey.

Rates and Payment 

This section, looking at industry approaches to setting and accepting fees and rental rates, shows variability between peak and off-peak rates and a range of membership options offered. The majority of kitchens increase their accessibility through sliding-scale rates for low-income entrepreneurs or incubator program members.

44% of respondents charge between $20 and $29 at peak times, and 40% charge under $20. This compares to 49% charging under $20 at off-peak times. For-profits charge more for off-peak times than non-profits in general.

Shared kitchens tend to offer flexibility with sliding-scale pricing based on the volume of hours, time of the day, low income of users, and incubation membership. 70% of facilities offer a membership plan with a range of billing methods, including 35% offering a pay-as-you-go model.

User Interface 

Kitchens still depend largely on manual bookings by phone or email, although there is a trend towards software solutions, with around 81% saying they use some kind of scheduling software to manage reservations. The Food Corridor has emerged as the market leader with 23% of respondents using its software.

Business Support

A key role for a shared facility or incubator is to provide business support and cluster benefits to its members. The data suggests there is support provided in key areas but also room for improvement. While a majority offer licensing and business counseling, only 30 percent of operators track at least one member success outcome, down from 50% in 2015. This suggests there is an understanding gap for the industry and its impact. 

As in 2015, help with licenses, certifications, and business counseling are the services most commonly offered. Although the proportion of facilities providing these key services is down, suggesting an opportunity for partnerships with external organizations to fulfill this need.

Photo by  Franck V.  on  Unsplash

Looking Ahead – Emerging Trends and Opportunities for Improvement

By comparing the surveys, we get an idea of how the sector has changed and evolved, where it is headed, and what can be improved.

The 2019 survey was specifically designed to reflect the growth and evolution of the industry and had a sample size three times larger than the 2015 survey. As a result, it is not quite a like-for-like comparison. There are nonetheless interesting trends and insights to be drawn. While some areas remained surprisingly similar across the surveys, there were large shifts in other areas and some novel insights.

What’s Changed Since the Last Report?

The general trends show shared facilities with more users producing a wider variety of products, and growing professionalism among tenants and operators. The same challenges remain commonplace, such as managing and maintaining operations with minimal resources and small budgets.

Shared kitchens are attracting more emerging food businesses requiring technical assistance in product testing and formalizing business practices. The breakdown of for-profit to non-profit facilities remained similar in the 2015 and 2019 surveys, as did the primary goal cited, with around half saying it was to assist early-growth businesses. 

The major differences noted were in the size of facilities and budgets, with an increase in small facilities, under 3000 square feet, and more facilities operating with a budget of less than $100,000. There was a sharp increase in the proportion of respondents offering different rates for lower-income tenants and more tenants staying for 1-3 years compared to 2015.

Overall, it’s a mixed bag of results suggesting that shared food facilities continue to be mission-focused and aim to support new businesses. It appears that even as investment in the sector grows and the industry matures, there is a trend towards smaller facilities. And generally, operators come across the same concerns over finding quality tenants, maintenance, navigating regulations, marketing, and attracting and retaining staff.

How the Industry Sees its Future 

In general, there is a positive feeling about the future of the industry, with nearly 70% of respondents expecting growth in the next five years. Many attribute this to an increasing connection with the rapidly growing food delivery network, on which more than a third of tenants rely to sell their products.

Many see the potential for multiple locations to be operated by one company as franchises, which would favor those with the most efficient management practices, strong branding, and a track record of incubating successful companies. 

Many facilities noted as their greatest challenge the regulatory climate of the industry, particularly licenses and legislation. Many local municipalities lack a regulatory framework for commercial shared kitchens, leading to unique challenges for food safety and storage. 

The complexity of the multitude of regulations relating to food production puts limits on many facilities. In order to better respond to these challenges and scale with the industry, it is generally considered valuable to partner with other organizations.

Photo by  Walter Otto  on  Unsplash

The result of strengthening partnerships may pave the way for better support for shared commercial kitchens in the most challenging areas. Access to secondary services that support food entrepreneurs would also be beneficial. A desire for an overriding, evidence-based food business curriculum was cited as another opportunity for improvement. 

Maturation and Evolution 

Shared-use kitchens are important institutions connecting small to medium-sized food entrepreneurs to an evolving consumer market. Operators and their facilities tend to be the center of local food communities and act as key entry points for new entrepreneurs. As such, shared kitchens play a key role as a connecting point for the local economy. 

Technical Assistance Needs 

A common desire among respondents was to concretely establish the shared-use food facility industry as an entity. The industry demands increased awareness, consistency in regulations, and more financing opportunities. Most respondents reported not receiving any tax credits, and many voiced a need for increased access to grant support. A desire to raise awareness among financers was expressed to help raise capital for facilities. 

The industry currently lacks benchmarking for tenant success. Established standards of operation would help to formalize the industry and provide financial reputability to businesses seeking financing. 

Social Impact

A unique feature of the industry is that it serves a diverse set of entrepreneurs and end-users, meeting some alternative needs of the overall food system. This diversification creates stability and puts shared kitchens at the center of the food entrepreneurship ecosystem. 

The shared-use food facility industry has an opportunity to differentiate itself from other commercial kitchen businesses by focusing on the impacts of the kitchen incubators on reducing the racial wealth gap through entrepreneurship. 

Low-income entrepreneurs are more likely than others to establish their businesses in their neighborhoods and hire from their communities, creating a compounding benefit for low-wealth neighborhoods.

Technological, Consumer, and Social disruption 

The prominence of food delivery is having an impact. As food delivery services become a larger part of how consumers find, buy, and eat their food, there is a growing demand for readily available, on-demand options for eating, and consumers are prepared to pay a higher price for a more convenient product. 

Shared-use kitchen facilities can take advantage of this demand by providing space for virtual restaurants and meal delivery businesses, and even providing delivery or other related services. This new wave in the growing sharing economy also requires special attention to be paid to integrating equity into the mission, strategies, and policies of shared-use kitchen facilities. 

Photo by  Fikri Rasyid  on  Unsplash

Capitalizing on Delivery Demand to Support Underresourced Entrepreneurs

Due to the demand in online food delivery services, ghost or cloud kitchens are being built to meet the specific needs of delivery-only food businesses. Large companies with venture capital backing are starting to build out facilities that meet these specific space requirements. 

Current and future shared-use food facilities will have to compete with these larger and better-financed firms, creating an opportunity to support entrepreneurs in capturing this growing market. Shared-use food facilities can differentiate themselves through their community-oriented approach, established history of helping users, and additional business support and services.

This is also an opportunity to support underrepresented entrepreneurs in capturing the growing delivery-only market share. As the industry grows to adapt to emerging business models and competition, demand for the formation of a larger advocacy and support network has grown. 

The NICK – A Network of Shared Kitchens 

The Network for Incubator and Commissary Kitchens is the largest informal network of shared kitchens. Run by the staff of The Food Corridor , this private Facebook group is a space for 1400 shared kitchen owners, operators, and community partners to ask questions, share best practices and opportunities, and provide mutual support. 

In October 2019, The Food Corridor hosted the network in Austin, Texas for the 2nd annual Food Incubation Summit . The two-day event was geared at food incubator administrators, commissary kitchen operators, and ecosystem service providers supporting the industry. 

The summit’s educational sessions in the form of panels, quick-fire talks and one-to-one mentoring sessions covered topics ranging from innovative approaches to membership, operations, and policies to designing and implementing incubation programs. 

Networking events were designed to encourage conversation and collaboration among attendees and for sharing best practices in key areas like tenant business development, as well as better advocating for shared use kitchen facilities and offering resources for further education and accreditation. 

By providing a shared set of resources, facilities can better help tenants achieve success across multiple regions, generating increased financial reputability for businesses seeking financing. Shared kitchens can begin to capture and share data better to improve operations and the flow of resources to the industry.

Looking for more information on this industry? Check out the Resources Page on The Food Corridor’s website , this blog that posts about emerging trends, or sign up for our montly newsletter to get the latest news and information about the shared use kitchen and incubator community.

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Understanding Incubator Kitchens: Benefits and Usage

Last updated on April 4, 2024

Discover the world of incubator kitchens and how they foster culinary creativity, support budding food entrepreneurs, and contribute to a thriving food industry.

An incubator kitchen is a term that has been gaining popularity in the food industry recently. It’s a concept that has revolutionized the way food entrepreneurs start and grow their businesses.

But what exactly is an incubator kitchen? In this article, we’ll delve into the definition of an incubator kitchen, its benefits, and how it differs from other commercial kitchens. So whether you’re a budding chef looking to start your own business or simply curious about this innovative concept, keep reading!

What's Inside

Defining Incubator Kitchens

These facilities offer a range of services, including access to professional-grade equipment , storage space, business support services such as marketing and accounting assistance, networking opportunities with other food industry professionals and potential investors.

Unlike traditional commercial kitchens where chefs or caterers rent out space for their exclusive use on an ongoing basis at a fixed cost per month or year; incubator kitchens operate on a membership model. Members pay fees based on usage time rather than renting out the entire facility for themselves.

The concept of incubator kitchens has been around since the 1950s when they were first established in Europe as part of efforts to promote small-scale entrepreneurship . However, it wasn’t until recently that they gained popularity in North America due to increased interest in local foods and sustainable agriculture practices.

The Origin of Incubator Kitchens

The concept of incubator kitchens originated in the United States during the 1950s and 1960s when shared commercial kitchen spaces were created to support small-scale food businesses. These early incubators provided a space where entrepreneurs could rent time on equipment they couldn’t afford to buy themselves, such as large ovens or industrial mixers.

Over time, these shared kitchen spaces evolved into more sophisticated models that offered additional services like business coaching and marketing support. Today’s modern incubator kitchens are designed to provide a comprehensive range of resources for food entrepreneurs at all stages of development.

The growth of the local food movement has also contributed significantly to the rise in popularity of incubator kitchens . Consumers are increasingly interested in supporting small-scale producers who use locally sourced ingredients and sustainable practices.

Incubators offer an ideal platform for these types of businesses by providing access to affordable commercial-grade equipment , professional facilities, mentorship programs and networking opportunities with other industry professionals.

Key Features of Incubator Kitchens

They offer several key features that set them apart from traditional commercial kitchens. One of the most important features is flexibility.

Incubator kitchens allow chefs and food business owners to rent space on an as-needed basis , which means they can scale their operations up or down depending on demand.

Another key feature of incubator kitchens is access to professional-grade equipment and facilities at affordable rates. This includes everything from ovens, stovetops, refrigerators, freezers, dishwashers and more.

In addition to providing access to top-notch equipment and facilities at reasonable prices; incubator kitchen operators also offer mentorship programs where experienced professionals in the industry guide new entrants through every stage of setting up their businesses – from recipe development all the way through marketing strategies.

Types of Incubator Kitchens

The most common types of incubator kitchens include shared-use commercial kitchens, ghost or virtual kitchens, and mobile/incubator food trucks.

Shared-use commercial kitchen spaces are the most popular type of incubator kitchen. They provide a fully equipped space for entrepreneurs who need access to professional-grade equipment but cannot afford the high costs associated with setting up their own facility.

Ghost or virtual kitchens are another type of incubator kitchen that has gained popularity in recent years. These facilities allow businesses to operate without a physical storefront by providing them with a licensed commercial kitchen space where they can prepare their food for delivery only.

Mobile/incubator food trucks offer an alternative option for entrepreneurs who want more flexibility and mobility than traditional brick-and-mortar locations can provide. These mobile units have all the necessary equipment needed for cooking on-the-go while still meeting health department regulations.

Choosing the right type of incubation program depends on your business goals and budget constraints as well as your target market’s preferences.

Importance of Incubator Kitchens

These kitchens offer shared commercial kitchen space, equipment, storage facilities, and business support services such as marketing assistance and mentorship programs. The importance of incubator kitchens lies in their ability to provide a low-risk platform for aspiring chefs or bakers who lack the financial resources or experience required to launch their own brick-and-mortar establishments.

Moreover, incubator kitchens also help reduce barriers that prevent small-scale producers from entering the market by offering access to licensed commercial kitchen spaces that meet health department regulations. This allows them to produce high-quality products at scale while complying with safety standards.

Another significant benefit of incubator kitchens is networking opportunities they provide through events like cooking classes or pop-up markets where entrepreneurs can showcase their products directly to consumers. This exposure helps build brand awareness and customer loyalty which are essential factors for any successful business venture.

Key Components of an Incubator Kitchen

It’s a supportive environment that provides food entrepreneurs with the resources they need to succeed. Here are some key components of an incubator kitchen:

1. Shared Space: An incubator kitchen typically has shared spaces such as prep areas, storage facilities, and equipment.

2. Business Support Services: Many incubators offer business support services such as marketing assistance, legal advice, and accounting services.

3. Training Programs: Incubators often provide training programs on topics like food safety regulations or recipe development.

4. Networking Opportunities: Being part of an incubator community means having access to networking opportunities with other food entrepreneurs and industry professionals.

5. Access to Funding Sources: Some larger-scale kitchens may also have funding sources available for their tenants in the form of grants or loans.

How an Incubator Kitchen Works

These spaces typically come equipped with all the necessary equipment and resources needed for food production, such as ovens, stovetops, refrigerators, and storage areas.

In addition to physical resources, incubator kitchens also offer a range of support services that help entrepreneurs grow their businesses. This includes access to business coaching and mentorship programs that provide guidance on everything from marketing strategies to financial planning.

One of the key benefits of an incubator kitchen is its flexibility. Entrepreneurs can rent space on an hourly or monthly basis depending on their needs.

This allows them to scale up or down as demand for their products fluctuates without having the burden of long-term leases.

Incubator kitchens provide a low-risk environment where aspiring chefs can test new recipes and build a customer base before investing in expensive equipment or committing themselves financially.

Benefits for Food Entrepreneurs

Firstly, they provide access to commercial-grade equipment and facilities that would otherwise be too expensive for small businesses to afford. This means that budding chefs can experiment with new recipes and techniques without having to invest in costly equipment upfront.

Secondly, incubator kitchens often have established relationships with suppliers, which allows food entrepreneurs to purchase ingredients at lower prices than if they were buying them independently. This helps reduce the cost of production and increases profit margins.

Thirdly, incubator kitchens provide a supportive community where like-minded individuals can share ideas and collaborate on projects. Networking opportunities are abundant in these spaces as there is always someone who has experience or knowledge about something you may need help with.

Fourthly, many incubator kitchens offer training programs or workshops on topics such as business planning, marketing strategies or financial management skills – all essential components when starting your own food business.

Being part of an incubator kitchen also provides exposure through events hosted by the space itself or other partners within their network; this could lead to potential customers discovering your products/services more easily than if you were working alone from home.

Target Markets for Incubator Kitchens

These individuals may have different levels of experience in the culinary industry but share a common goal: to start or grow their own food business. Incubator kitchens provide an ideal environment for these aspiring entrepreneurs by offering affordable access to commercial-grade equipment and facilities that would otherwise be out of reach.

In addition to providing access to resources such as kitchen space and equipment, incubator kitchens also offer mentorship programs and networking opportunities with other like-minded individuals in the industry. This allows budding food entrepreneurs not only access but also exposure within the community they are trying so hard to break into.

Moreover, incubator kitchens can serve as a stepping stone for those who want more than just renting kitchen space; it’s an opportunity for them  to test their products on real customers without having all the overhead costs associated with opening up their own brick-and-mortar establishment right away.

Overall there is no one-size-fits-all approach when it comes down targeting markets for incubators since each facility has its unique features catering towards specific needs depending on location or services offered.

Business Models for Incubator Kitchens

Some incubator kitchens charge a flat fee for kitchen rental space, while others take a percentage of sales from food entrepreneurs who use their facilities. There are also non-profit organizations that offer subsidized rates to support low-income or disadvantaged communities.

Another popular model is where incubator kitchens provide additional services such as marketing and branding assistance, product development guidance, legal advice or access to funding opportunities in exchange for equity in the businesses they help launch.

Some incubators may focus solely on providing kitchen space while others may offer co-working spaces with shared office amenities like printers and conference rooms. The key is finding an incubator that aligns with your business needs and goals.

It’s important to research various options before committing to one particular model since each has its own advantages and disadvantages.

Costs Associated With Incubator Kitchens

It’s important to note that there are costs associated with using an incubator kitchen. These costs can vary depending on the location, size of the kitchen, and services provided.

Some incubator kitchens charge a flat hourly rate for access to their facilities while others may require monthly or yearly membership fees. In addition to these basic charges, some kitchens may also charge additional fees for storage space or equipment usage.

It’s essential that you carefully review all of the costs associated with using an incubator kitchen before signing up as they can add up quickly and impact your bottom line significantly. However, keep in mind that even with these added expenses; utilizing an incubator kitchen is still often more affordable than renting out your own commercial space and purchasing expensive equipment outright.

How to Find an Incubator Kitchen

With so many options available, it can be overwhelming to know where to begin. Here are some tips on how to find an incubator kitchen that suits your needs:

1. Do Your Research: Start by researching online for local incubator kitchens in your area or nearby cities.

2. Attend Food Events: Attend food events and conferences in your area as they often have exhibitors from various culinary organizations including those who run Incubator Kitchens.

3. Network with Other Entrepreneurs: Reach out and network with other entrepreneurs who have used or are currently using an Incubator Kitchen facility.

4. Contact Local Business Development Centers: Check if there are any local business development centers that offer resources for small businesses such as access to commercial kitchens like Incubators.

5 .Visit Potential Facilities: Once you’ve narrowed down potential facilities, schedule a visit and tour of each one before making any decisions.

Selecting the Right Incubator Kitchen

With so many options available, it can be overwhelming to choose the one that best suits your needs. Here are some factors to consider when selecting an incubator kitchen:

1. Location: Choose an incubator kitchen that is easily accessible and located in a convenient area.

2. Facilities: Look for a facility with state-of-the-art equipment and ample storage space.

3. Services Offered: Consider what services are offered by the incubator kitchen such as marketing support, mentorship programs, networking opportunities, etc.

4. Cost Structure: Evaluate different cost structures of various kitchens before making a decision on which one fits within your budget.

5. Rules and Regulations: Ensure you understand all rules and regulations set forth by each potential option before committing yourself fully.

Rules and Regulations

These regulations ensure that the food produced in these kitchens is safe for consumption. Incubator kitchens must adhere to strict guidelines regarding cleanliness, sanitation, storage of ingredients and equipment maintenance.

In addition to health department regulations, incubator kitchens may have their own set of rules that tenants must follow. For example, some may require tenants to provide proof of liability insurance or limit the types of foods that can be prepared on-site.

It’s important for entrepreneurs who plan on using an incubator kitchen facility to familiarize themselves with all applicable rules and regulations before signing a lease agreement. Failure to comply with these requirements could result in fines or even closure of the business.

Health and Safety Standards in Incubator Kitchens

As these kitchens are shared spaces, it’s crucial to maintain a clean and safe environment for all users.

Incubator kitchen operators must adhere to strict regulations set by local health departments. These regulations cover everything from food handling practices, sanitation procedures, pest control measures, ventilation systems, waste management protocols to equipment maintenance requirements.

Food entrepreneurs who use incubator kitchens must also follow these guidelines when preparing their products. They need to ensure that their ingredients are stored properly at the right temperatures; utensils are cleaned thoroughly before use; surfaces are sanitized regularly during cooking processes; cross-contamination is avoided between different foods or allergens.

In addition to complying with regulatory requirements for food safety standards in an incubator kitchen setting can help build trust among customers while reducing liability risks associated with product recalls or lawsuits due to contamination issues.

Networking Opportunities

These kitchens provide a platform for like-minded individuals to connect, share ideas and experiences, and collaborate on projects. Incubator kitchen owners often organize events such as cooking classes, workshops, tastings or networking sessions where members can meet other professionals in the industry.

These events not only help entrepreneurs build relationships with potential customers but also create an environment where they can learn from each other’s successes and failures. Networking opportunities offered by incubator kitchens allow food entrepreneurs to expand their knowledge base while building valuable connections within the industry.

Moreover, these networking events may lead to new business partnerships or collaborations between different businesses operating within an incubator kitchen space. By working together on joint ventures or cross-promotions with fellow tenants in an incubator kitchen facility; small-scale businesses have a better chance of success than if they were operating alone.

Networking is essential for any entrepreneur looking to grow their business successfully; it provides access to resources that would otherwise be unavailable without collaboration efforts among peers in similar industries.

Supporting Local Food Communities

They also play an important role in supporting local food communities. By providing affordable kitchen space, incubator kitchens allow small-scale producers to bring their products to market without the high overhead costs of renting or owning a commercial kitchen.

Many incubator kitchens offer training programs and workshops on topics such as recipe development, marketing strategies, and business planning. These resources help entrepreneurs build the skills they need to succeed in the competitive world of food production.

Moreover, by bringing together like-minded individuals who share a passion for good food and sustainable agriculture practices, incubator kitchens foster collaboration among members of local communities. This creates opportunities for partnerships between farmers’ markets vendors or restaurants that source locally grown ingredients from nearby farms.

Challenges Faced By Incubator Kitchens

One of the biggest hurdles is finding a sustainable business model that works for both the kitchen and its tenants. Many incubator kitchens operate on a non-profit basis, relying on grants or donations to cover operating costs.

This can make it difficult to provide affordable rental rates for food entrepreneurs who are just starting out.

Another challenge faced by incubator kitchens is maintaining high health and safety standards while accommodating multiple businesses with varying needs and levels of experience in food handling. Incubators must ensure that all tenants comply with local regulations, which can be time-consuming and costly.

Competition among incubator kitchens has increased as more facilities have opened up across the country. This means that each kitchen must find ways to differentiate itself from others in order to attract new clients.

Future Trends in Incubator Kitchens

In the future, we can expect to see more specialized incubator kitchens catering to specific niches such as vegan or gluten-free cuisine. Technology will play a larger role in these spaces with smart appliances and software that streamline operations and improve efficiency.

Another trend is an increased focus on sustainability with many incubator kitchens implementing eco-friendly practices such as composting and reducing food waste. This not only benefits the environment but also helps entrepreneurs save money by minimizing their expenses.

Furthermore, there will be a growing emphasis on community-building within these spaces through events like cooking classes or pop-up dinners where chefs can showcase their culinary skills while networking with potential customers.

It’s clear that incubator kitchens are here to stay and will continue to shape the future of our food industry by providing opportunities for aspiring chefs while promoting innovation in culinary arts.

What is the incubator kitchen?

An incubator kitchen is a certified, affordable kitchen space designed to provide small food businesses a competitive advantage in the local marketplace for food preparation.

How big are incubator kitchens?

Incubator kitchens are predominantly small, with the majority operating in less than 5,000 square feet of space and nearly half under 3,000 square feet.

What is the use of incubator in food industry?

In the food industry, incubators are used to support start-up endeavors by providing a secure environment to develop ideas, recipes, business skills, packaging, production, distribution, and protection from obstacles, ultimately fostering business growth.

What do incubators do?

Incubators help maintain optimal temperature and humidity for babies, preventing hypothermia and skin problems.

What are the benefits of using an incubator kitchen for food entrepreneurs?

Incubator kitchens provide food entrepreneurs with affordable, well-equipped spaces and valuable resources to grow their businesses more efficiently and cost-effectively.

How do food startups typically find and rent space in incubator kitchens?

Food startups typically find and rent space in incubator kitchens by searching online platforms and contacting the facilities for available spaces.

What equipment and resources are commonly provided by incubator kitchens?

Incubator kitchens commonly provide equipment and resources such as commercial-grade kitchen appliances, storage facilities, mentorship, and business guidance for food startups.

Continue reading:

Ghost Kitchen Rental Costs: Understanding the Expenses Involved

Can You Rent a Kitchen? – Top Rental Options & Tips for Easy Cooking Spaces

Who Buys Used Kitchen Equipment: Top Buyers & Tips for Selling

Guide to Building a Commercial Kitchen on Your Property: Pros, Cons & Regulations

What a food incubator is and how it can help kickstart your business

Designed to give small food businesses a competitive advantage when entering or continuing in a local marketplace, a kitchen incubator — a.k.a. a culinary incubator —is an affordable, certified kitchen space that’s used for food preparation.

Typically, renters or members — ranging from food entrepreneurs to chefs, food truck owners, bakers and caters — use a shared kitchen by the hour or day to make fare. Affording a place to prepare food while meeting regulatory compliance, an incubator kitchen lets you avoid spending capital to build or lease your own facility. 

Unlike a shared-use commissary kitchen that simply offers kitchen rental, a kitchen incubator tends to offer additional support services, such as legal aid, business development training, product packaging, label printing and distribution. Given the FDA and state regulations prohibit the sale of food that is not produced in a licensed facility, a kitchen incubator helps mitigate start-up costs, all while providing a nurturing environment that can help a small business grow and thrive within its community.

How an incubator kitchen works

A low-cost, full-service kitchen space, members of a kitchen incubator often have 24/7 access to commercial equipment and the building’s production workspace, as well as cold and dry storage. Adding to that is industry-specific business expertise, support and guidance.

A way to avoid the debt of expensive equipment or the need to sign a long-term lease, kitchen incubator programs usually charge an application fee, along with a reasonable monthly program fee and hourly rate for kitchen use. Sometimes extra-specialized equipment can be rented at an additional cost.

The benefits of using an incubator kitchen

A kitchen incubator may offer free business coaching, low-cost business classes, on-demand training, and assistance with complex registration and licensing processes. It may even provide food truck parking with plug-in capabilities. Separate from the amenities, a shared-space approach offers the chance to learn and network with other food entrepreneurs. 

Culinary start-ups are unlikely to receive venture capital or bank financing given there are razor-thin profit margins in the highly competitive food market. Expensive to break into, the food industry is also complex. A kitchen incubator offers a supportive environment that allows you to tweak and fine-tune dishes until they’re just right — not to mention economically viable. That can be an ideal set-up for caterers, food truck owners or prepared meal services, not to mention bakers, personal chefs, street vendors and artisans producing specialty food.

Whether you’re a start-up food businesses in need of your first facility, a home-based businesses looking to legalize and grow your business, an established business wanting to grow or reach a new market or an established business needing a one-off rental space, an incubator may provide the added boost you need for your business concept to take flight.

Tying it Together — Your POS

No matter where your food prep takes place, you’ll need a system to take orders and payments . A comprehensive POS system can do that and so much more. Table Needs taks a plug and play approach to its services, with options that allow for flexible, affordable entry that grows with your business. Just need a digital menu with online ordering and the ability to streamline purchases? No problem. You’ll also be able to update your menu of offerings easily, in one place, in real time, across platforms. 

We’d love to hear about your situation and help develop an option that works for your business.

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How ‘Incubation’ kitchens are helping food entrepreneurs affordably scale their businesses

• Farm and gardens: Supporting people in growing, preparing, and eating nourishing food through hands-on educational opportunities at the Urban Farm and in the community. 
• Youth and schools: Educating K-12 youth in schools, in the community, and at the Urban Farm about growing and preparing fresh food. They offer a teen leadership training program and support the Farm to School program in the Ypsilanti School District. 
• Farmers markets: Increasing access to fresh, affordable food by managing two in-person Ypsilanti Farmers Markets and the Ypsilanti Online Farmers Market. These markets prioritize food assistance programs and healthy food education.
• Food entrepreneurship: Growing local economic opportunities by operating a licensed incubator kitchen and offering training and business support services for farmers and startup food entrepreneurs. 

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MSU Extension

Am i ready for a kitchen incubator.

Micah Loucks, Michigan State University Extension - August 15, 2016

Things to consider before working in a kitchen incubator.

Kitchen incubators are popping up around the state, providing great opportunities for food entrepreneurs to grow and learn. But are you and your business ready to take advantage of their resources? All kitchen incubators offer different and unique benefits, but overall they have lowered the barrier to entry for food entrepreneurs. Renting time in a commercially licensed kitchen to test a concept, establish a process and launch a product is less of a commitment than trying to buildout, buying or leasing a facility. Even though kitchen incubators can limit your risk and investment, it is important you are prepared. So, are you and your business ready for a kitchen incubator?

Do you have a business plan?

Business planning can feel daunting, intimidating and nebulous but is a necessary step in reaching your goals. A business plan doesn’t need to be a novel; however, it is vital to create a road map for you to stay focused as you start on this journey. A business plan will assist you in assessing opportunities, identifying competition, determining your market and so much more. This process will allow you to commit to an appropriate course of action. Without a business plan, it is easy to lose your way as you start and grow your business.

Do you know your product costs?

Knowing your ingredient, packaging, labeling and labor costs are important, but now that you are renting space in a kitchen incubator, how does this change your costs? Most kitchen incubators charge a reasonable hourly or monthly rent, but it adds up much quicker than you may think. This cost must be factored into your product costs. Before making a commitment to a kitchen, determine if your cost structure can support this additional cost.

Where are you going to sell?

Before moving forward with licensing at a kitchen, identify where you plan on selling your product. This needs to be more comprehensive than just listing the local grocery stores, farmers markets and other retailers. Being intentional and deliberate in pinpointing who your target market is and where they shop will go a long way in your success.

Can you be flexible?

Kitchen incubators by nature are full of many businesses utilizing the same space. As you look to utilize a kitchen incubator, you must determine if your schedule is flexible enough to accommodate a shared space with multiple users. Consult with the kitchen staff to confirm that the time you need is available at the space. 

Do you have the needed paperwork?

Kitchen incubators require additional paperwork, so contact them to determine what specific documentation is needed. Most incubators will require you to have a structured business (LLC, LLP, Corp, etc.), a ServSafe certificate or other food handlers certification and general liability insurance.

Kitchen incubators can provide you with a great opportunity to launch your business, but make sure you are equipped to take advantage of the resource. Make sure you have done your homework and you are adequately prepared to grow your business in a shared use facility.

The  MSU Product Center , in partnership with  Michigan State University Extension , provides business counseling for product development, packaging and marketing strategies that will help Michigan entrepreneurs commercialize high-value, consumer–responsive food, value-added agriculture, and natural resource products. For more information, visit the  MSUProduct Center  website or call 517-432-8750.

This article was published by Michigan State University Extension . For more information, visit https://extension.msu.edu . To have a digest of information delivered straight to your email inbox, visit https://extension.msu.edu/newsletters . To contact an expert in your area, visit https://extension.msu.edu/experts , or call 888-MSUE4MI (888-678-3464).

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• Food System Assessment
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Food Business Incubators

The rapid rise in demand for specialty products and services such as jams, salsas, high end coffees, healthy meals, and food trucks, is encouraging many new, hopeful food entrepreneurs to enter the market every year. With this emergence of small food entrepreneurs, many are wondering whether their community needs a food business incubator, and how this incubator might benefit the overall food culture of their region.

There are almost two hundred food business incubators nationwide and they take many forms. Some have a shared-use kitchen that food entrepreneurs and/or farmers can rent to produce and store their products. Others offer contract manufacturing services. Some are focused on produce only, while others allow tenants to process meat, cheese and other goods. Some provide mentorship and training while others provide business services such as sales and distribution support. Some are designed to support economic revitalization while others are designed solely to support agricultural producers. Some are tiny, serving a handful of entrepreneurs while others are large scale and bring together a large network of entrepreneurs.

New Venture Advisors helps clients determine how to best structure a food business incubator to meet their specific goals as well as the needs of their region’s food entrepreneurs and farmers.

New Venture Advisors is a team of business consultants specializing in local food system planning and new enterprise development.

Meet the team

Interested in tapping into our expertise for your project?

Let us know

Food Business Incubator Projects

Community Kitchen Feasibility Study

Junction city, ks.

The number one objective identified by the community in a recently completed food system plan is to invest in food system infrastructure that increases the availability of healthy, locally produced food, specifically, a commercial kitchen for farmers, food entrepreneurs and community organizations to rent. Junction City Main Street and the Live Well Geary County Food Policy Council are leading a feasibility study with an advisory board of local stakeholders and New Venture Advisors to determine the best way to design the facility and its programs to serve 80+ small food businesses, the 15+ local farmers they source from, and a community meals program, all in a way that is financially viable. (2024)

The Food Mill Food Infrastructure and Ag Corridor

Columbus, ga.

The Food Mill and its partners are developing a small corridor of food-focused facilities and properties along the 2nd Avenue corridor in downtown Columbus. The focus of these projects is to enable the expansion of food-access and agricultural programming (which they currently operate) into a diversified network of food enterprises including medically tailored meals, a shared kitchen, an incubator program, increased agricultural growing and community growing sites, food truck and food retail vending spaces, and outdoor recreation spaces. New Venture Advisors has supported the Food Mill in developing market space and operations  since the expansion of their original facility in 2021, and is currently assisting The Food Mill in defining the concept for this collaboration, its partnerships, operating model, and facilities design through a phased development process funded by a 2021 Healthy Food Financing Initiative grant. The Food Mill is working collaboratively in Columbus with key partners like Open Door Community House, Mercy Medical, and others to support this ambitious development project. (2024)

Food System Planning for the Waukegan Food Ecosphere

Waukegan, il.

The Adelante Center for Entrepreneurship exists to create wealth in distressed communities through entrepreneurship, community development, and living wage job creation, all through a focus on addressing food insecurity. A collective of food initiatives has been identified to be among the first projects undertaken at Adelante: an indoor farm and growing facility, an innovative approach to a food pantry, farm to school programming, a food hub, a shared kitchen, and a retail and food hall concept offering local access to diverse food and grocery options. Pre-development work for this ambitious set of projects is underway with New Venture Advisors. (2024)

Philabundance Community Food Strategies for Hartranft and PCK Entrepreneurial Program

Philadelphia, pa.

In addition to providing food distribution, Philabundance’s mission is to drive hunger from Philadelphia communities by addressing the root causes of hunger through integrated service and place-based program models. These interventions, known as Neighborhood Thrive Initiatives, are designed based on feedback from residents. New Venture Advisors worked with Philabundance to engage directly with residents in the North Philadelphia community of Hartranft to identify strategies to increase food access locally and build a more equitable food system. Feedback from residents also informed the development of an entrepreneurial curriculum for the Philabundance Community Kitchen, located in the Hartranft neighborhood. The entrepreneurial program aims to support the development of the types of food businesses that are most desired by community members. (2024)

Business Impact NW

Seattle, wa.

Business Impact NW (BIN) was presented the opportunity to take over and operate a shared kitchen space in Woodinville, WA as a food and farm incubation program. The program would focus on helping businesses develop, test, and launch value-added consumer packaged products sourced locally. To ensure this program has community and financial support, BIN entered a 90-day due diligence period before entering into an agreement with the owner. The organization engaged New Venture Advisors to conduct rapid operating, facility and financial feasibility analysis, and provide guidance on lease negotiations. (2022)

CLiCK Expansion Feasibility Study

Windham, ct.

CLiCK, Inc. (Commercially Licensed Cooperative Kitchen) is a non-profit commercial kitchen that provides affordable space for lower income and minority residents to incubate food-related businesses and offers gardening, culinary, and nutrition classes. Its kitchen members range from well-established year-round businesses to farmers market and food truck vendors to those who are just beginning on the certifications required to establish their businesses. The number of food businesses utilizing CLiCK’s facility has grown steadily. Renovations and expansion are needed in order to continue to meet the needs of its existing members and allow for further growth in membership. New Venture Advisors conducted a feasibility study and designed a multi-phase concept plan for the proposed expansion of this shared-use commercial kitchen and its likely economic impacts on Windham and the surrounding region. (2022)

Oneida Community Cannery

The Oneida Nation of Wisconsin is a federally recognized tribe of Oneida people, with a reservation located on 65,000 acres on the west side of the Green Bay metropolitan area. The tribe works to offer programs, services, and resources that enable the community to carry on with the strength and determination of its ancestors. The Oneida Community Cannery is a new initiative that will teach people how to process and prepare nutritious meals and traditional Oneida foods, serving not only Oneida Nation members, but also entrepreneurs in the food industry. In 2018 New Venture Advisors investigated the feasibility of this commercial and community-use, regional, and intertribal food production center, and in 2022 completed a business plan as the tribe prepares for launch. (2022)

Can-Do Kitchen Strategic Plan

Kalamazoo, mi.

Can-Do Kalamazoo (formerly Can-Do Kitchen) was embarking on a needed and ambitious expansion, potentially tripling its footprint to serve a growing number of current and aspiring food business owners in the Kalamazoo area. New Venture Advisors developed a relocation strategy and facility design to help Can-Do Kitchen plan for programmatic growth, scale at a sustainable pace and meet the needs of entrepreneurs who rely on the kitchen for their livelihood. This included launching a microloan program in partnership with Michigan Women Forward and LISC for kitchen users and other local food business owners whose race, orientation, immigration status or credit background may place them outside of normal lending opportunities. In 2022, Can-Do Kalamazoo became a highly collaborative, strategic business incubator and enterprise hub. They continue to offer the same kitchen facilities and support to food businesses and have scaled to include even more resources for entrepreneurs from all industries. (2021)

Open Door Community House Incubator Operating Plan

Open Door Community House offers skills training programs for low income individuals in Columbus, including Culinary Arts classes and ServSafe certification. The organization has launched a Culinary Incubator to support graduates from the program who are interested in starting a food business. It offers a full curriculum in a classroom setting. New Venture Advisors developed an operating plan for the incubator and provided coaching support during its pilot phase in late 2020. (2020)

Faith in Place Community Kitchen Incubator Initiative

Chicago, il.

Faith In Place is exploring the feasibility of creating Community Incubator Kitchens in houses of worship – churches, synagogues, mosques and temples – likely the most widely distributed asset base of kitchens, especially in rural areas. In these shared spaces, area farmers can add value to their produce by creating finished products to sell year-round, community members can make food products with ingredients sourced from local farms, and food entrepreneurs can start up a new food business. New Venture Advisors created a starter guide and provided coaching for faith leaders to evaluate the opportunity. (2020)  Download guide here

LISC Phoenix Commercial Kitchen Strategy

Phoenix and mesa, az.

The Local Initiatives Support Corporation, known as LISC, is one of the largest nonprofits in the country supporting projects to revitalize communities, transforming them into healthy and sustainable places to live, work, and raise families. Two projects in metro Phoenix, a cultural center and an affordable housing development, include commercial kitchens that will operate with a missional emphasis on job creation and serving small businesses, particularly local, women, native and minority-owned. NVA assisted in building the capacity of the management teams, and the refinement of their operating models. (2018)

 Whatcom County Food System Plan

In 2021, the Whatcom County Food System Committee conducted a community food assessment that pointed to key opportunities to build a more robust and resilient regional food system. New Venture Advisors partnered with Whatcom County staff and the Food System Committee to draft a Whatcom County Food System Plan that builds upon these findings. This Plan focuses on five key goals for building a more equitable, sustainable, and resilient food system, and was informed by an inclusive community engagement process. The Food System Plan will provide the county with a policy roadmap that will strengthen the local food system for years to come. (2023)

 Whatcom Local Food Campus

The Whatcom Community Foundation invests in activities and organizations that improve the ability of people to help themselves, increase connections among people, and take cooperative approaches to community issues. WCF is exploring the development of a local food campus on a waterfront property that would become a multi-tenant site, anchored by a collaborative production kitchen benefitting food access, school system, and community organizations. The goal is strengthening Whatcom County’s local food system by promoting health equity, forging tangible strategic connections between food production organizations, and helping farmers connect with institutional markets. The facility will also feature an incubation kitchen, demonstration kitchen, event and classroom space, collaborative office and conference facilities, and housing.  New Venture Advisors developed the business case for this ambitious project and continues to support its development through engagement and operational development. (2023)

Member Benefits

• Get Started

Cultivate Your Business

The Hazleton Kitchen Incubator program, powered by  THInC   (The Hazleton Innovation Collaborative) , gives regional food and beverage businesses a low-risk opportunity to start small, test, develop, and scale without the cost of equipping, and maintaining their own commercially-licensed culinary facility.

By doing so it encourages growth and equity in the local food economy by improving access to resources that traditionally are not available to those with limited incomes and for whom English may be a second language. It also improves food industry workforce training opportunities through hands-on training and access to commercial equipment.

We help our members focus on what really matters: building vibrant and sustainable food companies. Our partner organizations work closely with each member business to polish ideas and develop business models, as well as help cultivate customer connections and distribution opportunities. Food businesses accepted into the incubator program also receive mentoring and immersion in our regional entrepreneurial environment where they can collaborate with industry experts and peers.

Entrepreneurship Education

Housed within a 1909 historic bank building in the heart of downtown Hazleton (31 W. Broad St.), the newly renovated Hayden Family Center for the Arts kitchen is equipped to handle the needs of most startup bakers, caterers, ethnic/specialty food producers (for retail sales), food trucks and other small-scale food and beverage businesses. Small scale manufacture of jarred products might also be possible, as long as all processing (including filling and capping) can be done by hand according to the food safety protocols for specific products. The food preparation and storage areas are regularly inspected and certified by the PA Department of Agriculture.

Housed within the nearby HUB Welcome Center (15 W. Broad St.) and co-located with the Hazleton LaunchBox, the retail shop provides you with an opportunity to test your product, either through featured promotions or special events. The shop is equipped with café style seating, a sink, commercial dishwasher, refrigerator/freezer, coffeemaker, and microwave, as well as a refrigerated display case, WiFi, and a Square Point of Sale System for credit card payments.

Member businesses lease time in the kitchen or retail storefront on an hourly or monthly basis (rates start at $15 per hour). Rental contracts are on a month-to-month basis, allowing greater flexibility in managing your growth and pace of progress.

The Downtown Hazleton Farmer’s Market runs each Friday from 10am-2pm, starting mid-July through early September in the adjacent CAN DO Community Park. Members may sell their products as a market vendor without additional fees, provided they have received a business license and insurance.

Kitchen Equipment & Storage

• Bun/sheet pan rack on casters (2 ea.)
• Reach-in freezer (18.44 cu. ft.)
• Restaurant range (gas, 24”, 4 burners) with space saver oven
• Convection oven (gas, double-deck, 5 racks, 13 rack positions)
• Exhaust hood
• 3 ea. Reach-In Refrigerators (18.44 cu. ft.)
• Microwave oven (Amana commercial – 0.8 cu. ft. capacity)
• Work table (stainless steel, L-shaped 84”WX 36”W, 30”D includes prep sink bowl)
• Work table (stainless steel, 84”W X 30” D)
• Food waste disposer with cone assembly
• Hand sink (wall mounted)
• Garbage can with swing lid
• Dishwasher (Hobart under counter)
• Three compartment sink with over-shelf
• The kitchen is also equipped with exhaust fans and lighting over the work table.
• Water Activity Meter
• Avantco 30 QT Planetary Floor Mixer with Stand
• Ice-O-Matic 18" Gourmet Cube Ice Machine
• 8" Manual Impulse Bag Sealer with Timer
• 10 Tray Food Dehydrator

Cookware / Small Wares

• 18” x 26” Wire in Rim Aluminum Bun Pan / Sheet Pan (10 ea.)
• 18” x 26” Wire in Rim Aluminum Perforated Bun / Sheet Pan (10 ea.)
• 10” Aluminum non-stick fry pan (3 ea.)
• 8” Aluminum non-stick fry pan (3 ea.)
• Stainless steel mixing bowls (various sizes)
• Stainless steel stock pots (various sizes)
• 16 qt. Aluminum colander
• Chef knives, spoons, and other cooking utensils (various sizes)
• Measuring cups and spoons (various sizes)
• Cutting boards (2)
• 18” wood rolling pin
• 20” wood tapered French rolling pin
• 20lb compact digital portion control scale
• 17” flame retardant oven mitts
• 9” 4-sided stainless steel box grater

Storage / Transport

Kitchen and tenant storage is comprised of about 30-40 linear feet of wall space located in the basement of the building. The storage area is suitable for tenants to keep their personal equipment and utensils, ingredients, packaging and labeling supplies, and a small number of cases of finished product. Each tenant will be provided lockable storage within a 18”x 36”x 69” cage on wheels to allow for easy transport of work items via elevator to the kitchen. There is also and 18”x 36” shelving cart with 2 baskets (on casters) for transport of additional items and equipment.

Requirements

• Hazleton Kitchen Incubator Checklist
• Tenant Application
• Shared Use Agreement
• City of Hazleton Business License
• PA Department of Agriculture retail food license application
• PA Department of Agriculture wholesale food establishment application
• Food handler or manager certification course list
• Truist Foundation - Food Entrepreneurship Assistance Micro Grant Guidelines
• Zoning Permit New Business - City of Hazleton

Request More Info

The mission of the Hazleton Innovation Collaborative is to leverage the academic and research resources of Penn State and its community partners to nurture the growth of entrepreneurshipin the Greater Hazleton Area, and foster an entrepreneurial culture that will result in economic development, job creation, income growth, improved quality of life and student career success.

• Our Four Programs
• LAUNCHing Bright Ideas
• Kitchen Incubator of Chattanooga
• Buy Local, Buy LAUNCH
• Entrepreneur Spotlight
• History of LAUNCH
• Board & Staff
• LAUNCH Entrepreneurs
• Get Involved
• Sign Up For Class

Located at 5704 Marlin Rd  Chattanooga, TN 37411

(423) 403-5462

The Kitchen Incubator of Chattanooga, or KIC for short, is over 10,000 sq. ft of food-centric startup space designed to remove barriers faced by many entrepreneurs of color. Our goal is to shrink the inequitable wealth gap and create generational wealth by providing a collaborative community, real business opportunities, and empowering our KIC members to grow and thrive. Click here to visit the official KIC website!

The Kitchen Incubator of Chattanooga is designed for food-centric businesses in the beginning stages of their business. Our facility is a good fit for:

• Food truck owners looking for commissary and storage
• Caterers, bakers, or distributors in need of a kitchen
• Small businesses looking for a physical location to sell their food at periodic pop-ups or food truck markets
• We work with all KIC members to earn ServSafe certification, obtain their business license, and become licensed by the Hamilton County Health Department.

The KIC is both TN Health Department and TN Department of Agriculture compliant. KIC members have access to a commercial kitchen, pastry kitchen, and licensed food truck commissary from the department of health. Amenities include:

• Printing and printing materials
• Commercial ovens and stovetops
• Commercial grills
• Communal cookware
• Stainless steel prep tables and equipment
• Dry storage, cold storage, and frozen storage
• On-site video security system
• LAUNCH CHA & KIC Workshops
• Regular Events (i.e. markets, pop-ups, etc.)

For information on membership, please access the official KIC website  here .

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• The Entrepreneurs

2024 LAUNCH, Inc. All rights reserved.

Business Incubator Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » B2B Sector

Are you about starting a business incubator? If YES, here is a complete sample business incubator business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a business incubator. We also took it further by analyzing and drafting a sample business incubator marketing plan template backed up by actionable guerrilla marketing ideas for business incubators. So let’s proceed to the business planning section.

Business incubators are organizations that help start-up companies grow speedily as well as ensure that early stage companies become successful. In starting a business incubator, you would need to ensure that you have a high source of networks with angel investors, venture capitalists, state governments, as well as with other investors.

This is also a business that requires you to pick a niche and understand the target market you intend to help accelerate towards success in order to become a success yourself.

Even though business incubators have often either been private non-for profit businesses, non governmental agencies or a government sponsored programme, there now exists business incubators that are private and are started with the intention of making profit.

As with starting any business, you need to conduct a feasibility study on if it is worthwhile going into this kind of business.

Most new start-ups usually hire a reputable business consultant, who understands the industry, to help them handle this phase. Using a business consultant is helpful as they would point out the obstacles you are likely to face during the course of starting or running the business and how best you can overcome these challenges.

Another serious aspect you shouldn’t overlook is in having a business plan, as it is vital to the success of your business. Below is one of such samples, a business incubator business plan template;

A Sample Business Incubator Business Plan Template

1. industry overview.

Business incubators came into existence in 1959 in the united states as Joseph Mancuso started the Batavia Industrial Center in Batavia, New York. This led to the growth of business incubators all over the country and as at 2006; there were more than 1,115 business incubators in the United States of America. Globally, there are more than 7,000 business incubators in existence.

Business incubators usually fall into several categories in order for the specific business incubator to be able to use best industry practices and evaluation to successfully determine outcomes for start-up businesses. The National Business Incubation Association has therefore categorized business incubators into five; mixed-use, service, technology, manufacturing, and other.

There are majorly two types of business incubators in existence; those that have a physical facility and an on-site management for clients to exploit. Also, business incubators that have a physical location usually offer start-ups space in which to operate their business.

Virtual business incubators on the other hand, do not offer clients on-site space for their business and may not even be located in the same geographic areas as the clients. They however usually have a central office in which activities are coordinated and clients can go to for conferences.

Business incubators started being judged based on providing best industry practices in the early 1990s as a determinant to ensuring successful programs for their clients. Another thing used to evaluate business incubators during this period was what value they added to client firms that ensured that these firms had improved outcomes and other economic benefits.

There have started emerging new business incubators that seek to help foreign firms enter the United States’ market. Even though these business incubators provide the same entrepreneurial services as traditional incubators, they also help foreign firms have easier access to the U.S market and resources or partnering with U.S firms.

These services offered usually include language training, translation services, cultural training, immigration and visa assistance, helping to obtain vital licenses (business and driving), as well as housing assistance. The immigration services offered are usually to help spouses and children so they find it easier to settle in their new intended location.

In the United States of America, most business incubators usually receive start-up funding as well as continuous support from donors and the government.

According to research, 85% of business incubation programs usually receive continuous public support for their annual operating budgets. However, more nonprofit incubators usually receive higher support in comparison to profit-based business incubators.

Also, the business incubator category that receives the most attention is that of technology especially if these incubators are close to universities and colleges. Most technology based business incubators are often located close to or with science/technology parks.

2. Executive Summary

Business incubators are usually programmes that are designed to ensure that start-up entrepreneurial companies are successfully accelerated towards successful development through diverse business support resources as well as services. Our aim is to ensure that we achieve a 90% success rate with all those who see our services here in Mountain View – California.

Our location in 1500 Amphitheatre Parkway, Mountain View, California is very strategic especially as there are several new businesses starting up every now and then as well new businesses already in existence; that require guidance on how to become a success as well as force in the industry they intend going into.

Our aim as a business is to ensure that we help our clients attain their goals by using best practices and providing the best evaluation tools and other form of guidance that will be helpful to our clients. We have set processes and structures in place that enable our team best interpret the United States’ economy and use this in helping our clients become the success they intend to be.

We now that there is no one best incubation practice that would suit all our clients and ensure that they become a success and so in this regard, we intend to have a synergy of multiple policies and services so as to have optimal outcomes that will be most suitable for specific clients’ needs.

To achieve all these, we have built a business structure that is guaranteed to ensure that our business runs smoothly and that we are able to achieve what we set out to do.

It is for this reason that we have sourced for and hired proficient and professional employees who are not only competent in their assigned responsibilities but also believe enough in the organization and are committed to seeing corporate goals achieved.

In order to ensure that we achieve a high level of productivity, we will ensure that our employees are well trained and undergo training regularly to ensure that they enhance their sills. We also intend to ensure that our employees work in an environment that is not creatively limiting and is also conducive.

Also, we have the best welfare packages for our employees’ that is the best across similar business incubator start-ups similar to ours here in Mountain View – California as well as across the entire industry in the whole of the United States of America. Also, our incentive packages for hardworking employees are also top notch.

Our owner, Brad Bradley has an experience of over 30 years in the business management and entrepreneurial solutions.

Both are Havard Business School alumni and have hands-on experience in several business incubators both private and state sponsored, and will therefore bring their experience to bear in the business and ensure that the corporate goals and objectives set are achieved.

3. Our Products and Services

Our intention at Bulb Business Incubator Inc, is to ensure that we offer our customers the intended services they require virtually especially as we are a virtual business incubator that intends to deal in the service based niche, even though we will have a central establishment in which to coordinate activities.

We intend to ensure that we whilst offering our core service that we also create multiple sources of income as well for Bulb Business Incubator Inc.

Our intention is to ensure that we generate revenue and also make profits from the several services we intend to offer in addition to our core service here as permissible under the laws of the United States of America. Therefore below are some of the services we intend to offer;

• Fees for mentoring and guiding of clients’ businesses
• Consultancy and advisory services for already existing businesses
• Provision of technical assistance
• Negotiators
• Marketing consultancy
• Training services

4. Our Mission and Vision Statement

• Our vision is to help our clients achieve their corporate goals of breaking into the market, securing investment or getting acquired. We hope to achieve a 90% success rate. We also intend to become the preferred brand for start-up and growth companies in our niche.
• To achieve our vision, we intend to ensure that our clients are provided with a low-impact fee structure, great mentoring as well as have competent employees to help them achieve success faster than they would have done on their own.

Our Business Structure

As a business that understands how to help new startups and growing companies achieve success, we know and understand the importance of having the right business structure for our business and are willing to go the extra mile. We therefore intend to go all out in ensuring that we build a business structure that aligns with our vision and corporate goals as a business here in Mountain View – California.

We intend to hire competent and professional employees who understand the industry thoroughly and who are also attuned to our company’s vision and are committed to ensuring that we achieve our corporate goals and also reach an intended standard for our business whilst positively projecting and promoting the business to clients – existing or potential.

We also intend to ensure that our employees are well paid across similar start-ups such as ours in the industry. This is so that they remain productive, motivated and committed to ensuring that we achieve our goals here at Bulb Business Incubator Inc.

Therefore, the business structures we intend to build at Bulb Business incubator Inc include;

Chief Executive Officer

Business Development Manager

Customer Service Executives

Business Coach

Human Resources and Admin Manager

Marketing Executives

Accountant/Cashier

Security Guard

5. Job Roles and Responsibilities

• Makes decision that will affect the strategic direction of the company
• Seek for funding on behalf of the company by approaching several sources
• Reviews policies that aren’t working or having much impact and remove or modify them in order to achieve organizational growth
• In charge of coordinating the management staff and ensuring that organizational policies are implemented
• Identifies areas in the company that needs an upgrade
• Liaises with management staff in order to know how best to move the organization forward
• Identifies new income sources for Bulb Business incubation Inc
• Drafts proposals on behalf of the business
• Works with manager to ensure that corporate goals are achieved
• In charge of ensuring that all clients’ inquiries and complaints are promptly attended to
• In charge of ensuring that customer database is accurate and updated
• Remain updated about industry trends and company policies so as to have the right information for the client
• Provides the required mentorship for new start-ups and growing businesses
• Reviews mentorship processes and continually upgrade so that clients can get the best
• Know what mix will best suit a client and how best to use the mix
• Sources for and recruits the right employees for the business and ensures that they undergo orientation to help them settle in
• Conducts training for the employees as well as performance appraisals in order to increase the productivity for the organization
• Ensures that all administrative tasks are smoothly conducted and that the policies of the management are implemented by staff.
• Conducts continuous market research on behalf of Bulb Business Incubator Inc in order to help identify new markets
• Helps new start-ups as well as Bulb Business Incubator Inc develop marketing strategies intended to generate more revenue for the company
• Conducts direct marketing on behalf of the organization
• Carries out an internal audit on behalf of Bulb Business Incubator Inc
• Serves as a temporary financial adviser and guide for new start-ups and growing businesses
• Prepares financial information and statement on behalf of the company and ensure that they are correctly reconciled with ban records at the end of the month
• Ensure that the facility is kept clean at all times
• Ensure that depleted cleaning supplies are re-stocked
• Carries out any other duties as might be determined by the human resources and admin manager
• Ensure that the premises is secure at all times especially after work hours
• Watch the surveillance cameras in order to monitor activities

6. SWOT Analysis

In order to better understand our business ideology and concept and how well it would help us fare in this environment, we deployed the help of a reputable business consultant in the service industry here in Mountain View – California, to walk with us through our concept and help us determine if we were going to succeed in the business environment especially in this location which we have chosen.

Having gone through our business plan and looked through our concept and processes, the business consultant deployed the SWOT (strengths, weaknesses, opportunities and threats) analysis that would help in determining our rate of making it in the industry.

Below is the result of SWOT analysis that was conducted on behalf of Bulb Business Incubator Inc;

Our strength lies in the fact that we have processes and structures in place to ensure that we achieve our goal of achieving a 90% success rate in helping our clients.

We also have put much emphasis on our business structure in the sense that we are careful in sourcing for and recruiting the right employees who are professionals and competent enough to ensure that we attain our corporate goals and objectives.

Also, we are strategically located in Mountain View – California as there are new start-ups cropping up every now and then in the service based industry often looking for guidance on how to succeed. Finally, the experiences that our owner, Brad Bradley is bringing to the table are more than likely to help us attain our corporate goals and objectives and succeed.

Our weaknesses lie in the fact that we are mostly a virtual business incubator offering services to our clients, and this might affect clients who are not in our geographical location.

Also, the service based industry is one that requires that we might have to intensely compete with other already established business incubators for clients; however we have put strategies in place that would ensure we create awareness for our business.

• Opportunities

The opportunities that abound for us as a business is in offering other new services that might crop up as the business and industry evolves leading to more streams of income. Also, there are many investors looking to invest in service based ideas and so we would not have a lack of investors for start-ups requiring this.

Every business is faced with threats every now and then and as a business we are prepared to face any threats that might crop up during the course of starting or running this business.

Therefore the threats we are likely to face are government policies concerning business incubators that are established for profits. Also, we are likely to face the threat of an arrival of a competitor in same location offering same services as we do.

7. MARKET ANALYSIS

• Market Trends

In the 1980s, even though business incubators were becoming the preferred means by which new start-up companies preferred seeing assistance from, there were only a handful of business incubators present. However as at 1992, according to the National Business Incubator Association on the state of the business incubation industry, it was found that business incubators had tripled.

The trend in the business incubator industry has it that majority of its operators; almost 90% are nonprofit entities and enjoy more state funding than the minority business incubators that were operating in the same industry.

Also, most of the incubators that receives higher attention and funding were those that were in technology-based. Incubators that have also received a fair share of attention are those that target disadvantaged populations such as minorities and women.

Business incubators especially those for small businesses have played a major role in economic development by enhancing the survival rates of companies.

Reports for the incubation industry have it that start-up companies that have used the services of business incubators have an 80% chance of remaining in existence 5 years after. This has led business incubators especially those for small businesses to be seen as an accepted economic development tool in the rural and urban areas all over the United States of America.

8. Our Target Market

In deciding the target market for our business incubator program so as to know what range of customers we would be likely serving here in Mountain View – California in reference to our niche category as well as all over the United States of America, we have conducted a market research that would help us in this regard.

The reason for the market research is so as to know what our target market would likely be expecting from us. This would allow us draft the best strategies that are not only effective but also necessary in ensuring that we rightly penetrate our target market.

Therefore form the result of the analysis; we are in business to offer our services to the following customers;

• New Start-ups in the service based industry
• Growing service based businesses in need of an accelerator
• Other business incubators

Our competitive advantage

Bulb Business Incubator Inc is being established to help our clients achieve their corporate goals of breaking into the market, securing investment or getting acquired. Our intention is to achieve a 90% success rate and also become the preferred brand for start-up and growth companies in our niche.

With this, we have come up competitive strategies that will allow us compete favorably as well as have an edge over our competitors.

First off, our virtual as well as physical location is opening us up to having more customers than we would have if we were strictly serving customers based on physical locations. Another edge we have is in the offering of standard services regulated by international best practices.

Our clients also get a dedicated and competent staff that helps them reach their intended goals. We have also hired competent and professional employees who now and understand the market well to help us achieve our corporate goals.

Our employees have the necessary expertise that will inspire our clients and an excellent customer service that will ensure that we get referrals from our successful clients.

We not only intend for our clients to work in a conducive and creative stimulating environment, but we are also paying them well better than most similar start-ups in the same industry here in the United States of America. This is aimed at motivating them to put in their best in ensuring that the business grows to the required standard.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Bulb Business Incubator Inc. is a private business incubator that has been established to help start-ups and companies still in their early stages whilst generating revenue and making profit here in Mountain View – California.

We intend to offer our clients various services that are intended to bringing in more revenue that will ensure the sustainability and growth of our business. Therefore, Bulb Business Incubator Inc will generate income from the following services;

10. Sales Forecast

Every business is established in order to make profit, sustain itself and grow, however not all know how to go about achieving this, which is why there would always be a need for business incubators. Our virtual as well as physical location is very strategic and will allow us to not only generate the needed revenue as it is less expensive to operate but also make profit within six months of operations.

In carrying out an accurate sales forecast on behalf of the business, we have conducted a critical examination of the business incubator industry in order to determine our chances in the industry. We garnered data from similar start-ups such as ours here in Mountain View – California.

Therefore, below are the sales projections for Bulb Business Incubator based on several factors:

• First Fiscal Year-: $300,000
• Second Fiscal Year-: $600,000
• Third Fiscal Year-: $1,200,000

N.B : It should be noted that above projections were carried out based on certain factors such as there won’t be an economic meltdown which will make it difficult for new businesses to start up and that we won’t have a competitor arrive at our location within the period of the above sales projections. However, a change in any of the factors would mean that the above projected figures might increase or decrease.

• Marketing Strategy and Sales Strategy

Before starting any business, it is important to ensure that the marketing strategies have been laid down so that there would be any hitches during the revenue generation process.

This is why we have conducted a market survey that will help us determine how we will best penetrate the market and attract the needed number of customers for our business while also favorably competing with our competitors here in Mountain View – California.

It is for this reason that we have hired a reputable marketing consultant that understands the business here in Mountain View and will help us develop marketing strategies that will allow us effectively attract the right customers and enable us gain a huge share of the target market here in Mountain View – California as well as all over the United States of America.

We have also empowered our marketing executives to ensure that the right strategies are adopted that are in line with our corporate goals and that will allow us achieve our intended objectives at Bulb Business Incubator Inc.   Below are some of the strategies we would use to market the services of Bulb Business Incubator Inc;

• Ensure that we place adverts about our services in local newspapers, business magazines as well as on radio and television stations
• Engage in direct marketing to target customers
• Encourage our satisfied clients to refer us to others
• Introduce our business formally to industry stakeholders, government agencies, private investors, as well as in campuses
• Ensure that our business is listed in online and offline directories
• Use our social media platforms such as LinkedIn, Twitter and Facebook and other Online business inclined forums to market our business.

11. Publicity and Advertising Strategy

Having the right publicity for our business is very essential as we aware of the benefits that publicity would bring to our business.

Publicity and advertising go hand in hand because the benefit of a business getting intense promotion is also revenue generation. This is why we would ensure that we intensify publicity for Bulb Business Incubator Inc here in Mountain View – California.

To ensure that we draft and implement effective publicity strategies, we intend to hire a reputable brand consultant who understands how best businesses such as ours can utilize publicity to maximum advantage. We would be using a mix of strategies in order to achieve our intended publicity and advertising strategies for Bulb Business Incubator Inc. Below are the publicity strategies we at Bulb Business Incubator Inc intend to adopt;

• Throwing a grand opening party that would create an awareness and make the right impression
• Attend business seminars and events in the service based industry and offer to address the audience. We would also use the opportunity to network
• Create a website and ensure that it is Search Engine Optimized (SEO) so that it can easily pop up on top of search engines
• Install bill boards in strategic locations in and around Mountain View – California
• Distribute fliers and handbills in strategic locations such as colleges and universities
• Broadcast our success rates on social media platforms such as LinkedIn, Facebook and Twitter

12. Our Pricing Strategy

Ensuring that the right prices are determined for a product or service is very important because using the wrong prices or rates without much research might lead to the business running at a loss and eventually failing. However, while it might be difficult determining the rates for an intangible product such as service, several factors have to be taken into consideration so as to ensure that the rates are fair to both the company as well as the client.

In determining the rates for our various services, we intend to ensure we take factors such as our overheads, what our competitors are offering as well as what kind of service our clients want into consideration. However, as we are just starting off the business, we would offer lower rates for all our clients so as to build a trust and achieve a level of success rate that will then lead to us increasing our prices.

• Payment Options

Because we would mostly be a virtual business incubator with one centralized location here in Mountain View – California, we intend to ensure that our clients have payment options that would be convenient for them as well as our company.

Therefore, the payment options we intend to make available to our different clients are;

• Payment via check
• Payment via cash
• Payment via bank draft
• Payment via equity
• Payment via credit card
• Payment via online payment portal

The above payment options were carefully chosen and will work for all our clients offering them a hitch-free transaction.

13. Startup Expenditure (Budget)

As with every business when starting up, there are several aspects of the business where one is expected to spend huge parts of the start-up capital. Creating a budget for our business is necessary so that we are able to determine what aspects would require huge money and which would require less. Therefore the key areas where we would spend our start-up capital on are;

• Fees for registering the business in the United States of America – $750
• Marketing expenses for general promotional activities as well as marketing expenses for the grand opening of Bulb Business Incubator Inc – $5,000
• Insurance coverage (General liability and Workers Compensation) – $2,250
• Obtaining of licenses and permits, as well as accounting software – $2,000
• Operational costs for the first 6 months (employee salaries, utility bills) – $100,000
• Cost of hiring business consultants – $2,500
• Leasing of office facility for a period of one year including renovations – $30,000
• Business program packaging expenses – $30,000
• Cost of purchasing stationeries, furniture, computers, printers, fax machines, phones – $12,000
• Cost of launching a website – $500
• Cost of our opening party – $5,000
• Miscellaneous – $10,000 

From the above budget breakdown, we would need the sum of $200,000 to be able to start and successfully run our business incubator business here in Mountain View – California. It should be noted that the above amount covers the salaries of our employees and payment of utilities for at least 6 months of operations. It also covers the leasing of an office facility for a period of one year.

Generating Funding / Startup Capital for Bulb Business Incubator Business

Bulb Business Incubator Inc is a business owned and operated by Brad Bradley and Steve Cowell. They know how necessary it is to have funds for this kind of business and so they intend to see for funds from some sources. The areas below are where we intend to see for funds in starting our business incubator business;

• Generate part of the start-up capital from sale of personal stock
• Approach the government for a donation to our business
• Approach several private investors
• Apply for loan from bank

N.B : in searching for start-up capital for our business incubator business, we were able to generate the sum of $30,000 from sale of our personal stock. We also have approached the government for a donation to our business and were given the sum of $50,000.

After approaching several successful service entrepreneurs who were looking to invest in service based ideas, we got the sum of $50,000.

Finally, as part of having a contingency plan, we approached the ban for a loan of $70,000. The loan has been approved and will repaid back in 5 years at the rate of 2%. We have signed all the necessary documents and have been told that we would receive the amount into our account within the week.

14. Sustainability and Expansion Strategy

We have established a business that is not only intended to make profit but also remain sustained and even expand at a pace that would be determined by us. Due to this, we are aware that if our business is to be sustained, we would need to ensure that we hire the right employees, have a high success rate and also have an investment strategy for the business.

To help achieve our intended corporate goals and objectives, we have sourced for and hired employees who are not only professionals and competent enough but also have identified with the company’s corporate goals and will ensure that it remains committed in ensuring that these goals and objectives are achieved.

On our part, we would ensure that our employees are well paid and that they will work in an environment that will not stifle their productivity and creativity. We would also ensure that they remain updated about industry trends and receive continuous training that will help our clients attain their own goals.

The only thing that can ensure that our business incubator program is sustained for a long time is our success rate. We have plans, processes and structures in place that are constantly being reviewed every now and then to ensure that we achieve a 90% success rates for clients that patronize our services.

This will lead to more referrals for our business as more new start-ups and growing businesses will prefer to use our services in order to reach the height they intend for themselves.

Finally, we intend to continually invest in our business, by ploughing a percentage of the profits made back into the business, to ensure its growth and sustainability. We know that if we focus on these three factors we are likely to successfully sustain and expand our business.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting feasibility studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
• Purchase of trucks: Completed

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