Tenant Selection at Jakova Innovation Center
- Entry Process
The incubator entry process involves four steps.
Potential tenants are encouraged to enter into informal discussions with the incubator manager to determine if their business concept is advanced enough for consideration and matches with the objectives of the incubator. A basic checklist for the entrepreneur to follow will be prepared and will serve as a guide.
- Your initiative will create jobs.
- You will be completing a business plan which contains among other sections executive summary, potential markets and size of market, growth potential, financial projections, exit strategies, and best estimate of length of stay.
- You are prepared to sign a lease.
- You are committed to meeting monthly lease payments.
- You are prepared to stay in the JIC designated region/space upon graduation.
- You are prepared to obtain all necessary business permits.
- You are prepared to obtain comprehensive general liability insurance.
- Submission of Application
JIC requires the completion of a formal tenancy application. Quite often the application forms are available on-line (one has already been prepared by JIC)
While documentation necessary to support the application may differ, some form of a business/financial plan is usually required.
JIC, may also consider providing space for temporary use (1-4 months) for use by company’s moving to the area and awaiting construction of their more permanent facility.
The following list constitutes the qualifications and expectations for a successful applicant. Candidates are to meet the majority of qualifiers.
- The business must be on the early stage of business. This means that it would be on the first or the second year of the business. Exception would be anchor tenants
- The applicant must show capacity to pay for space and services while they develop positive cash flow
- The applicant must show potential for fast growth and provide economic benefits to the area including creating new jobs and opportunities for area supplier and vendors.
- The applicants should show a willingness to accept and act on assistance. An entrepreneur’s willingness to accept and act on the advice and counsel of the incubator president is closely tied to the potential impact of the incubator on the survival and relative success of the company.
- The applicant must not be in direct competition with existing incubator businesses.
- The applicant business must be willing to take advice from the professional network and/or the incubator staff.
- The applicant must want to take advantage of and be able to benefit from the value-assed services and guidance of the incubators.
Once a positive decision is made, the manager will forward a letter that generally outlines the incubator’s services, operating procedures, and rental rate with expected annual increases. If the expectations are satisfactory to the entrepreneur; he/she will need to sign and return the letter. Once agreed to, a formal lease agreement will follow.
The JIC incubator should not be perceived as a permanent home. Space is limited at JIC, so it is important that businesses which are able to succeed in the private market, graduate to make room for others. Quite often incubator graduation is based upon the business outgrowing the space or on a pre-determined timeline (generally ranging from 3-4 years.)
All the clients must sign the tenant lease agreements, which include all the graduation policies. Those policies should address time limits, value exchange and resource commitments.
- Time Limits: The maximum time for a client to receive services should be set; the standard time is maximum three years. Depending on the business type, we will be setting timeframes before signing the tenant lease agreement. Regardless of the specific time established, it is important to underscore that in discussions during the business planning process stakeholders strongly recommended a rigorous application of this policy.
- Value: JIC will continually add value to its services. Clients who have surpassed their expectations and prediction should graduate and begin using private sector providers. This value assessment is facilitated by ongoing business development assessments between the incubator management and client.