The concept of business incubators--whereby a new business can immediately lease a workspace for far less capital than it takes to open their own building--is catching on.
It isn't exactly new, but there definitely is a newfound dedication by communities to offer business incubators to clients in the area, such as the four distinct facilities in Newaygo, Flint, Flushing, and Hart. Not only are the incubators effective ways to help new business get started, but they also can help in talent development, and help established workers find a remote work center to use.
In downtown Newaygo, at
The Stream, they like to say theirs is a facility "where talent flows." It serves as a corporate office for clients who are starting or growing their office, complete with the amenities of corporate America. Food also can be catered in for meetings.
"A study found that 48 percent of workers in Newaygo County leave the county to go to work," says Laurie Supinski, of the
Newaygo County Economic Development Office and manager of The Stream. "We give them a close-to-home option.
"And for those people looking to start their own business, they have everything they need here: Conference rooms, work space, high-speed Internet which is a plus because in a rural place like Newaygo that's not always a given."
There are four staff members at The Stream, and NCEDO officials expect more than 200 jobs to be created in the community by incubator over the next five years. There are 46 workspaces and a wide variety of membership fees. A single student can rent a workspace for as little as $40 a month and an organization with multiple workers can go as high as $400-$600.
"We customize our pricing to the client," says Supinski. "We find that it isn't a one-price-fits-all situation."
Clients include a wide range of businesses and individual workers.
Spectrum Health holds meetings and training sessions at The Stream while
Sandmold, an engineering firm, uses it to make customer presentations, and a Grand Rapids attorney maintains a satellite Newaygo office at incubator. These are just a few examples of the clients at The Stream. There are students, independent workers, an independent financial planning business and more.
Over in Flint, at the
Oak Business Center, not only do they offer corporate space, but the facility also has industrial space for individuals and businesses to rent. Office space is 80 cents per square foot and industrial space is 30 cents per square foot.
Oak Business Center is located just north of downtown Flint at 2712 N. Saginaw Street, and its facilities are well rounded. It accommodates more than a dozen offices, two conference rooms, a kitchen, and a work center.
In addition, there is plenty of industrial space to get work done. William J. Wood, property manager of Oak Business Center, which is funded by the Economic Development Corporation, points to one highly successful industrial client as one that has taken full advantage of the leased workspace.
"
Premier Power Coating just loves the situation they have at the Business Center," Wood says. "His business has grown by leaps and bounds. He has a nice lobby where he can welcome clients, and he can show them his stuff in his own workspace, not just talk about it and show samples, which might be the case without us."
Some current or past clients include Advance Business Consultants, EDC Workshop, Jessica Chaney Ministries, Essential Business Services, Good Connections Auto, and of course, Premier Power Coating.
"I know we're doing some good for the community," Wood says. "Where else would these businesses and workers be? It's so much better than trying to run a business out of your house and hold meetings in your garage."
In Flushing,
The Town Office is located right on Main Street to give clients a central location to do business. There are 12 open concept workstations, 5 executive suites that range in size from 80 to 190 square feet with shared access to 1,800 square feet of space, a conference room, a presentation area and a kitchen.
The Town Office has several memberships with varying services: Bronze Membership Package at $40 per month; Silver at $60 or Gold at $80.
In Hart,
The Starting Block has a completely different kind of business incubator. It deals exclusively with supporting entrepreneurs in food and natural resources businesses. It provides licensed commercial kitchen facilities, entrepreneurial education and peer-to-peer networking to new and expanding businesses in the West Central Michigan region.
Like the previously discussed business incubators, The Starting Block is a nonprofit, regional economic development organization committed to small business initiatives. Kitchen use ranges from $10-$15 per hour, office rental costs from $110 per month to $275, and warehouse and storage $10-$15 per month. Refrigerator and freezer storage rents for $150 per cubic foot per month and $75 per pallet per month.
Overall, business incubators are proving to be effective and their popularity is on the continual rise--and for good reason, says Wood.
"We know we've got a great idea that helps people," says Wood. "We really want everyone to know we're here and ready to get them started."
Jeff Barr is a freelance writer who has lived in Michigan for 45 years. You can reach Jeff at barrj88@aol.com.