FAQ

What is a business incubator?

A business incubator functions much like an incubator for newborn chicks or premature infants. It provides an artificial environment that augments the newborn’s immature systems, helping sustain them until their systems have grown and matured enough that they can survive on their own outside the incubator. In this way, the long-term rate of survival of newborn companies is increased significantly over what it would be if they were left on their own.

What is BizTech?

BizTech is Huntsville’s business incubator that focuses on companies that are offering technology, energy, materials, or life sciences products and/or services.

Where does BizTech get its funding?

BizTech is funded by both the public and private sectors. NASA/Marshall Space Flight Center, the Tennessee Valley Authority, Alabama Department of Economic and Community Affairs, and the City of Huntsville were the founding partners that provided BizTech with seed monies to get started. BizTech also receives support and monies from local individuals and businesses.

Why do so many small businesses fail and how can an incubator help?

According to the SBA, 50% of small businesses fail in the first three to five years. Studies show that the top two reasons for failure are management inexperience and insufficient capital. Other reasons small businesses fail include:

  • Inadequate planning
  • Lack of market knowledge
  • Failure to seek the advice of a professional
  • Failure to seek advice of other people with experience in their business
  • Lack of financial planning and review

Business incubators work with entrepreneurs to abate risk, to solve problems faster, to shorten the learning curve, and to improve their likelihood of success. And it works! According to a Dept. of Commerce study, 87% of all small business who had been through a business incubator were still in business after five years!

How much does it cost?

Clients pay a low, affordable monthly fee for services beginning at $275 per month. For more details, please schedule an appointment with BizTech’s CEO at 256-704-6000 or email contact@biztech.org.

How do you help entrepreneurs?

BizTech provides strategic guidance, access to investors, mentors, and a ready-made network of contacts, help in building the management team, specialized training, affordable space, and professional services at reduced rates. For more information about services, please see the “Client Services” page.

What is a mentor?

BizTech’s mentors are senior executives of existing companies, successful entrepreneurs, and expert service providers. They volunteer to assist our Client companies with various business problems including strategy, financial planning, marketing and sales, legal, and general management issues.

Do I have to move into the incubator?

BizTech has both resident and non-resident clients. Non-residents, or affiliates, are companies who need strategic guidance and business assistance, but do not need space. However, past clients have told us that there is great benefit to being resident in the incubator, where you can share experiences and problems with fellow entrepreneurs. Sharing approaches and solutions to problems can be a great help. Lots of this sort of information gets shared around the coffee pot and break area every day. In fact, entrepreneurs have told us that being inside the incubator “lessened their fear and anxiety.” They realized they were not alone.

Can you help me with my business plan?

BizTech has resources available that can help you with your business plan.

How do I apply?

Complete the pre-application questionnaire on the web site from the “Qualifications” page. Upon receipt, someone from BizTech will contact you.

How do I know if I am qualified?

The criteria for acceptance are:

  • There must be an entrepreneur to be the focal point of the company.
  • The company must seek to build a scalable business that develops unique technology-based products or services for market segments such as life sciences, information technology, energy, and health care.
  • The beginning of a sound management and/or product development team.
  • A product and/or service which is less than 24 months from market.
  • Realistic financial projections demonstrating significant revenues and/or employment within the first five to seven years.
  • A desire to leverage the services offered by BizTech.

If you do not know whether your business idea fits BizTech’s acceptance criteria, please call our CEO at (256) 704-6000 to discuss.

Where is BizTech located?

BizTech is located at 515 Sparkman Drive in Huntsville, Alabama, across form the UAH Tom Bevill Center. Click here for a map to BizTech.

How long does a company stay in the incubator?

Affiliation with BizTech is on a year-by-year basis. Most companies stay about 3 years before graduating, although many life sciences companies stay 4 years or more.

What are the requirements to “graduate?”

BizTech has several “benchmarks” for graduation. One or more of them may trigger graduation. They are:

  • Significant growth in employees and/or revenues, to where the survival of the company is no longer in doubt.
  • 3 years (5 years for life sciences)
  • Change of ownership
  • Revenue growth over $15 million per year
  • Facilities needs that are beyond BizTech’s ability to accomodate