Another item that an incubator needs to have on hand is a book of business plans. Many eggs that enter an office may not have their plan fully laid out, or any plan at all. This book of business plan examples can give them a good example of how to write a proper business plan.
This will be extremely valuable to the aspiring entrepreneur who has skills, but no idea what business to create. Show them the book the center has already
created and allow them to choose any of them as their own.
Anything in the book of business plans will paid on certain scale. I suggest the entrepreneur will make 10% of gross profits. The incubator and accelerator keeps 90% to be re-invested in the center. Any idea the incubator creates is the center’s intellectual property. They should keep a large majority of the earnings. If the egg can turn the in house business into a company with a million dollars of profit they will earn a hefty payment of $100,000 with minimal risk.
As eggs choose the businesses in the book, the center will operate the ideas they championed as in-house businesses. The center will update the business plan book with the businesses that are already operating within the incubator and accelerator. If someone chooses an existing business then pair him or her with the current owners at the accelerator.
The profits a center generates from all in-house businesses will be used to cover the incubator and accelerator’s expenses. It is a center’s job to utilize the in-service hours correctly. By scheduling eggs to work in the appropriate positions the center will profit. Then the incubator and accelerator can expand the reach of its programs, services, and job creation abilities.
I also suggest that an idea brought in by an egg will flip the percentages. The egg will receive 90% into their accounts and 10% goes to the incubator and accelerator. This way the center creates needed profits to grow the incubator and accelerator. The eggs have a way to make cash flow for their business even while working their in-service hours they still make a 10% of profits on anything they sell in the showroom during an in-service shift.
The creation of businesses allows the center to place certain people in areas where they need the most training. Eggs can sharpen the skills they are currently lacking or taking classes in. Remember, the key to our incubator and accelerator is to allow the eggs to actually run the businesses. This is the perfect set up, because they are able to actually take part in a variety of businesses. Simultaneously, they earn money that will directly be placed into their business accounts to help them grow.
To recap, every time the center takes a new business they need to begin by having the entrepreneur create their business plan. The center will then add it to the book of business plans. Should another egg enter and want to work with an existing business, then the center would allow them to. They would receive same 10% for the new egg and 90% for the existing owner for all new profits they create for the individual segment. This allows the center to build teams with an eye on profitability.