Transcript Slide 1

Business Incubation and
Community Benefits
Business Link – Vista Orientation
June 19, 2008
Presented by Dar Schwanbeck, CMC
NABI Managing Director
www.nabi.ca Phone 780 460 1000
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Background on Incubation
NABI Goals and Structure
Plans
Marketing Elements
Budget
Impact and Benefits
Customer characteristics
Admission / Graduation criteria
Definition of Incubation
A business incubator is a place where entrepreneurs and small business
es can receive business counseling, coaching and mentoring, as well
as build skills and make connections. Incubators typically provide aff
ordable commercial spaces, administrative support services and a ra
nge of seminars and workshops designed to foster and accelerate sm
all business growth. They may be located on college campuses or ta
ke advantage of existing buildings that are re-purposed for incubation
use. Critical to the definition of an incubator is the provision of manag
ement guidance, technical assistance and consulting tailored to growi
ng small businesses.
Incubation Primer
“The level playing field for entrepreneurs is a myth. A new company is
an offshoot of a newly identified niche in the market. Business Incub
ators just accelerate value flow to market. For start-up entrepreneur
s, steep challenges pave the way for greater achievements and com
petencies. Business Incubators provide opportunities for start-ups t
o focus on core competencies and leverage performance based gro
wth…
Innovation to market, equal opportunities for young entrepreneurs, in
stitutionalizing better entrepreneurial practices, better resource man
agement, reduced business mortality, etc. are some of the other feat
ures.” (Source: R. M. Jawahar, Director, TREC-STEP, India)
Attributes
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Incubators help new businesses emerge, survive and become viable. They offer space, shared eq
uipment, management support, technical assistance and inspiration. As Anatole France says, “To
accomplish great things, we must not only act, but also dream; not only plan, but also believe."
Business incubation is a business support process that accelerates the successful development of
start-up and fledgling companies by providing entrepreneurs with an array of targeted resources a
nd services. These services are usually developed or orchestrated by incubator management and
offered both in the business incubator and through its network of contacts.
A business incubator’s main goal is to produce successful firms that will leave the program financi
ally viable and freestanding. These incubator graduates have the potential to create jobs, revitaliz
e neighborhoods, commercialize new technologies, and strengthen local and national economies.
Incubators vary in the way they deliver their services, in their organizational structure and in the ty
pes of clients they serve. Highly adaptable, incubators have differing goals, including diversifying r
ural economies, providing employment for and increasing wealth of depressed inner cities, and tra
nsferring technology from universities and major corporations. Incubator clients are at the forefront
of developing new and innovative technologies – creating products and services that improve the
quality of our lives in communities around the world.
The earliest incubation programs focused on a variety of technology companies or on a combinati
on of light industrial, technology and service firms – today referred to as mixed-use incubators. Ho
wever, in more recent years, new incubators have emerged targeting industries such as food proc
essing, medical technologies, space and ceramics technologies, arts and crafts, and software dev
elopment. Incubator sponsors have also targeted programs to support micro enterprise creation, t
he needs of women and minorities, environmental endeavors and telecommunications.
Types of Incubators
Challenges in Rural Economic Development
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Presumption that the market is local (or there is no market). This can be a bad assumption. For e
xample, there could be a tourism market in the Beaufort Region, but it will take a lot of cooperation
among various stakeholders (e.g. government, airlines, guides, etc.).
Weak or limited business skills
Often lots of good, practical ideas
Cautious investment climate
Looking outside for money, versus locally; investment can usually be found locally.
Lack of supply chain/services for small business (e.g. transportation, computer support, materials,
etc.)
Lack of whole systems thinking to support the entrepreneur as a “resource” to be developed, and
hence, the community does not work together to support the entrepreneur
Efforts to attract outside businesses in, usually don’t work (unless there is whole systems approac
h to overcoming all of the hurdles – finance, labour, people, training, etc.
Need for infrastructure to make it happen – and the primary, secondary job dilemma (e.g. industry
or manufacturing job versus new retail store) – the infrastructure and “cluster support” requirement
s for basic jobs are usually much greater – but offer much greater economic impact
Politicians don’t like funding capital projects with uncertain futures (e.g. buildings)
There are often many government initiatives (e.g. different government departments) at work in rur
al areas – but they may not be aware of each others agendas.
Incubators can support rural economic
development
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Provide a focal point to get things done (e.g. connect government agencies, guides a
nd support resources to foster business start up)
Provide long term economic stability and diversification
Preserve local jobs – stem traditional migration from rural/remote to urban
Serve remote resource communities needs
Offer “rural” as an alternative to urban in which people move from urban to rural
Rural incubators can now thrive through technology enablers – wired communities an
d regions; and now wireless communities
Incubators and incubation (properly done) can enhance the potential and reduce risk
to investors and lenders.
Incubators and incubation can provide an alternative source of job creation (can’t find
a job, create one).
Incubators and incubation can complement other economic development initiatives (e
.g. training and apprenticeship programs)
Local start-ups (aided by Incubators) can provide part-time or seasonal employment
opportunities
Incubators can drag home-based businesses out of the house and enhance their cha
nces for success.
Requirements for incubator success in a
rural setting
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Tap into the local pool of entrepreneurs (e.g. farmers, fishers and other sma
ll businesses)
Operate independently – can jump over bureaucratic and geographic hurdle
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Train / educate local resources
Give access to resources and networks
Foster a new way of thinking about entrepreneurs in a whole system context
Work to adapt the local system to meet the needs of the entrepreneur, vers
us the other way around
A small community should be more flexible to adapt the system to the entre
preneur
Try to understand the entrepreneurs' strengths and work with them
Assist small businesses to appreciate certain realities (e.g. the need to do a
business plan to access financing.)
Attributes of the rural incubator garden
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Proactive identification of candidates, supply chain members, partners and l
ocal investors
Matchmaking
Seeking entrepreneurs with ideas, passion and a willingness to learn
Proactive mentoring and coaching
Identification of products and services not dependent on local markets
Finding local facilities and resources that can be catalysts
Not ignoring low technology or service-based businesses
Taking a whole system approach, creating holistic environment that offers th
e right conditions for business success.
Often, providing the situational leadership necessary to establish the discipli
ne and hold small business owners accountable to their business plans.
10 Incubation Best Practices
Literature from the NBIA suggests 10 key success factors to incubation success. These success factors apply, regardle
ss of incubator mission or specific focus.
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1. Effective business incubation programs are based on legitimate feasibility studies and business plans. These es
sential documents must identify the market an incubator will serve and prove its financial viability.
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2. Business incubators are fundamentally service programs, not buildings. No building can grow companies, provi
de mentoring and assist emerging companies in meeting benchmarks necessary for growth. It has been many yea
rs since any knowledgeable person thought a building was the key innovation in business incubation. If your stake
holders aren't aware that they need to invest in people and knowledge more than in bricks and mortar, you need to
work with them to open their eyes.
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3. Top incubation programs are well managed, which means their sponsoring organizations provide appropriate s
alaries and benefits to individuals who have the skills to help companies grow and to transform communities. If loc
al authorities pay for a concierge, they will get a multi-tenant building with a receptionist, not a vibrant business inc
ubator that can grow the local economy.
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4. Flexibility and commitment to service are keys to effective incubation. Incubator staff themselves must be entre
preneurial and nonbureaucratic and recognize that they're in a service industry. Not only do they have to help com
panies develop management teams, they also have to get the mail out on time. They must maintain a special relati
onship with their clients – both leader and servant – and only those types of personalities are appropriate for incub
ator staff.
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5. Effective incubator managers proactively provide business development services. They screen clients, analyze t
heir strengths and weaknesses, help set benchmarks for growth, and bring in mentors and business service provid
ers to provide customized assistance. Effective incubator executives also monitor these activities, garnering enoug
h feedback from the entrepreneurs and the mentors to determine what is and isn't working. Effective managers do
n't make a referral and walk away, confident that they've done their job.
Best Practices Continued
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6. A top-of-class incubation program knows its mission, and management, board and staff clearly understand and
work to support that mission. Regular evaluation of all aspects of the program ensures that the incubator meets its
goals, evolves with the market, and incorporates new tools and technologies to better serve its clients.
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7. The best business incubation programs are well integrated into their community networks, resources, and econ
omic development plans and strategies. Gone are the days of stand-alone programs lacking support from economi
c developers, academics and the business community. More and more, we see incubation programs at the nexus
of significant angel equity investing networks, publicly sponsored seed funds, technology infrastructure developme
nt and commercialization programs, entrepreneurial campuses, or youth entrepreneurship programs.
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8. Top incubators adhere to the principles and best practices of the National Business Incubation Association (NBI
A). These best practices include ensuring that management time is focused primarily on serving companies, rather
than managing buildings, raising money or holding politicians' hands. In fact, NBIA research has shown that incub
ators that adhere to best-practice standards have better outcomes and are more self-sufficient and sustainable. Pu
blic investors in these incubators get more return for their investment.
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9. Top incubator managers engage in continual learning. After all, this field is not like accounting, which has been
around for more than 500 years. The business incubation industry is only about 25 years old, and not a day passe
s when someone doesn't develop a new tool or technique or uncover a key piece of information that can help grow
companies. Top incubator managers engage in professional development activities, ongoing learning and networki
ng to improve their skills.
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10. Effective incubator managers are committed, idealistic and hard-headedly realistic at the same time. They take
a hard and honest look at their communities, roll up their sleeves and get to work. They recognize that our success
es are limited primarily by the size of our dreams.
See NBIA, Principles and Best Practices of Business Incubation.
Notes on Incubator Feasibility
In trying to determine the probability of success of any given business
incubator, feasibility studies often examine as many as 30 to 60 different
variables. These studies can take months to complete and costs can range to
hundreds of thousands of dollars. This is not surprising; investments in
incubators are often in the millions of dollars.
When boiled down, there are a few critical success factors for a small, mixed
use incubator. These include:
•Adequate market demand
•The incubator provides support services, business coaching & mentoring
•The incubator has financial stability and is not dependent on a single source of
funding, and
•The incubator charges market pricing and operates as a business.
The best feasibility studies are a
team effort
•A committed local team, and
•Outside help and ideas
There are no “magic bullets” in determining incubator feasibility. Each project
should:
•Avoid benchmarking (i.e. don’t assume because it worked (or didn’t) in another
community, that it may or may not in yours
•Be customized to fit to the community.
Realities in business incubation
•Two-thirds of incubators are not self-sustaining; they must depend on
one or more sources of public funding for their capital and operating
needs
•Their payback to the community is through business and job creation,
taxes and circulation of money in the economy. Collectively this might
be called “economic activity or impact.”
•The economic impact of incubators is often poorly understood.
Economic impact may be measured by the number of jobs created,
payroll values, total company sales, and multiples applied to these
numbers.
•Proving the financial viability of incubators can be very difficult.
Incubators operate in dynamic markets, funding support can vary and
local business conditions can greatly impact the success of incubator
tenants. These variables are exacerbated in locations where costs are
high, labor is transient and industry uncertainties prevail.
NABI’s Mission
• NABI is a guide and inspiration to small business
• NABI provides customer focused resource
centers offering incubator services, counseling
and education, networking opportunities and
identification of sources of funding.
• NABI is self-sustaining and has a strong
partnership base that results in positive
economic impact through the creation of jobs,
business development, retention and expansion.
NABI’s Vision (BIG GOAL)
By the close of 2010 NABI has 100
businesses under incubation
(approximately 50 in-house and 50 regionbased)
By 2018 we create 1000 new jobs in the
region
Current Status
At June1, 2009 NABI has:
42 in-house clients
10 region-based clients
That support a total of 154 jobs (3.3 per business)
NABI’s Intermediate Goals
• Maintain self-sufficiency as stand-alone
incubator (>85% of annual revenue from
operations)
• Have 60 businesses under incubation by the
close of 2009 (40 in-house, 20 virtual);100 by
the close of 2010 (50 in-house, 50 virtual)
• (at November 1, 2008: 37 in-house, 10 virtual,
154 jobs)
• Graduate 10 businesses per year
• Support 150 jobs per year
• Counsel 100 prospects per year
Strategy
• Aggressively lease space to promising
tenants
• Then, concentrate on incubation programs
and implementation
Business Plan
Building & technology maintenance program to ensure operations at 13 Mission for 2 years.
Emergency procedures
Security systems & programs to guard against fire & burglary
Alarm system
Emergency equipment (fire)
Insurance programs (NABI & tenants)
Open communications with City regarding unusual budget items (e.g. A/C units)
Semi-annual updates
Annual presentation to City Council
Pitch to target businesses for new facility
Pre-leasing package
Goal: New building @90% occupancy (from start)
Pitch to current tennants for new space
20 dollars (2007)
Market rates applied to gross leaseable space
Office rent
Program and coaching sales (see below)(not included here)
Admin support fees
Technology fees (copies, phone, internet)
Multidimensional revenue streams
Goal: 50,000 (2007)
City operating grant
Goal: 50,000 (2008)
CIP funds
Provincial operating grant
Goals: 2007 $100,000; 2008: $50,000
Alberta Advanced Education - Innovation
Maintain 13 Mission Avenue as NABI headquarters
Maintain 3 year rolling operating & capital budget
Sufficient operating budget for buildings
Adequate, suitable space & lease terms for client & prospect needs.
Goal 2007:(25,000)
Goal: Long term annual operating surplus (building) is $25,000.
Goal: Target occupancy is 95%
Director letters to papers; City Administration Support; 1:1 Meetings with Councillors; Updated NABI operations budget
St. Albert City Council support for capital funding
Goal (WD):Business growth & competitiveness, econ. diversification & development
Letter to Feds re: funding extension; update to Province re NABI status
Confirmed Federal & Provincial Support
Pitch to capital sponsors (Landrex, Hodgson, City of Edmonton, Hind, ATB)
Update presentation to potential capital & program sponsors
Agreement on supporting assumptions
Proforma budget that works for all parties
Agree on metrics & targets with stakeholders
Economic impact numbers
Compelling business case for NABI and new facility
Current construction costs
Goals: Funding confirmed by March 31, 2008; Drawings by June 30, 2008; Tender complete August 31, 2008; Construction start September 1, 2008; complete June 30, 2009
Goal: 30,000 ft. leaseable
Plans for or an existing or new 40,000 ft. facility
Expand portfolio of professional services available (banking, angels, legal, accouting)
Examine other NBIA best practices (e.g. seed funds, video technology, accounting services etc.)
Review / maintain service & support offering
Address immediate pain
Formulate core strategy using TOC princliples delivered via story board method
Provide leadership, discipline and accountability using Situational Leadership Model
Reveiw/update coaching framework and model
Address prevention needs
Address gaps using Next Level business planning models
Training and coaching capabilities and technologies necessary to serve diverse and remote locations in Northern Alberta
Maintain 200 Carnegie as NABI professional centre
Service & Distribution Strategy
Adequate, suitable support services for client & prospect needs.
Choose / implement distance delivery model
Internet delivery model
Third party model (e.g. Meyers Norris)
Promote program coaching and support services to clients & prospects
Develop model for taking piece of customer business as compensation for value creation (e.g. 5% of sales)
Grow corporate mail drop & reception business
Goal 2007: surplus 5,000
Goal:Long term annual operating surplus (programs) is $25,000
Goal: Deliver 2000 coaching hours in 2008 (100 clients on growth ramp)
Maintain 3 year rolling budget (separate from building and capital)
NABI can attract and retain high quality delivery personnel in small business training and coaching
Thinking - Exploring
Starting - Basics, Micro or Youth
Sustain - Story Board, Basics, Micro, One-Page
Review / align programs with needs of 5 segments below
Turnaround - Story Board, One Page, Next Level, Goldsmith
Growth - Story Board, Next Level, Goldsmith
Sufficient operating budget for programs
Adequate, suitable training and coaching programs for client & prospect needs.
3 year rolling forecast of coaching capabilities updated quarterly against actuals and sales forecast
Adequate counselling for walk-ins contemplating business start-up.
Fixed & variable cost staffing complement
HR Strategy
IT Strategy
PT Building Manager, PT Head Coach, FT Reception, FT Admin Support, JIT Coaching
Annual reviews, open communications
Goal: 3 available by close of 2007
Develop inventory of front-line coaches
Develop accountability metrics for coaches (quality, customer satisfaction, business growth)
Use City of St. Albert HR guidelines
Up-to-date policy & operating manual
Customer satisfaction policy
Customer-centered culture
Right blend of finders, minders & grinders (may lack implementation level)
Requisite organization structure
NABI 24/7, Next day Internet & phone, VPN for printing
Customer choice for Internet & telephone services
Shaw Big Pipe, Nutec Phones & PBX, DownStream IP
4 Value Packages for Internet; Phone to suit
Goal: Support 100 per year
"Thinking about it" Segment (low revenue, low development, wide scope)
Goal: 70 under incubation
Start-up Segment (low revenue, low development, narrow scope)
Product / Market Analysis, Bases for Segmentation (type of business, growth potential)
Goal: 20 under incubation
Stabilize Segment (moderate revenue, mid development, wide scope)
Goal: 5 under incubation
Turnaround Segment (high revenue, advanced development, intense scope)
Goal: 5 under incubation
Growth & Diversification Segment (high revenue, advanced development, medium scope)
Review criteria (by segment) for selecting and accepting customers
Franchise & distribution operations
Trades (starts > growth)
NABI is entrepreneur developer of choice
Target Market(s)
Emerging technology
Knowledge-based businesses
Engineering
Professional services
Goal: Blend of 50% Anchor Tenants, 50% Growth
Life Sciences
Strong positioning: "NABI is the support system to take your business to the next level"
Execute items per NABI marketing calendar (see TAB)
Integrated marketing strategy
Goal $25,000 per year
Adequate resources to make business development investment
Easy to use logo & graphics
Viable & Sustainable Business Incubator
Revisit logo themes and slogans
Sufficient number of suspects & prospects aware of NABI programs
Marketing strategy to deliver full pipeline of opportunity
Sufficient number of prospects who try NABI services
Sufficient number of customers satisfied
Strong, trust-based brand known for delivering value to customers
Sufficient number of customers who refer or re-purchase NABI services
Develop & execute sales strategy that is aligned with marketing
Execute items per NABI marketing calendar (see TAB)
Direct mail / spam / fax blast > point to website
Goal: Complete Sept. 30
Testimonial video(s)
Goal: Complete September 30
Move to DotNetNuke Platform
Up-to-date website (news, blog)
Goal: Bi-weekly
News updates
Goal: 500,000 web hits
Assign, f/u with writers
Per article schedule for next year
Newspaper articles
Seminar focus starting October 15
K-ROCK program (3 - 5 x prime time)
Radio advertising
Goal: 100 prospects
K-Rock remote Oct. 13 w/Diesel
Align with radio themes
Poster Campaign
Presentations to military base support groups (target with right aptitude, trade skills)
Presentations to growth audiences (CIPS, Alberta Council for Technologies)
Delivery of introductory seminars
Goal November Joint session
NAIT, TEC Edmonton role in seminars
Goal: Per calendar (audience permitting)
NABI in-house events
Goal: Monthly
Direct letters to new businesses: Alberta Registry, Chambers of Commerce in Region
Goal: NABI open house Sept. 30; reminder Oct. 10
Spam to database re:events
Goal: F/U with applicants
Venture Prize alliance
Goal: NAIT, U of A, Job & Career Fairs,
Moonlight in the Meadows
NABI Trade show participation
St. Albert Farmer's Market
Monthly BBQs, Moose on the Table sessions
Monthly free webinars
Follow-up with contacts made
Annually - ready for Mid-August
Updated master brochure
Career TV, Big Breakfast slot
Goal: 5 million exposures to market region
Goal: 50,000 exposures to suspects
Goal: 5,000 prospects in sales funnel (ACT)
Maintain up-to-date contact database
Ask customers / prospects for referrals
Effective elevator pitch: NABI helps people…(see TAB)
Targeted direct prospecting for growth companies
Semi-structured session to explore personal goals, business viability, passion to grow and willingness to learn
Free consultations and assessments of business idea (60 minutes)
NABI membership brochure
Sell NABI memberships, add contacts to database
Goal:500 membership sales annually
Customer inquiry follow-up by qualified coach
Goal: Long term 500 prospects completing consultation
Goal: Balance 2007 - 30 prospects completing consultation
Satisfaction surveys (early, mid term, final)
Tenant & client selection criteria to identify high potential customers suited to coach-based learning
Criteria to measure customer progress against their goals and plans.
Assemble angel network & connections
Look at ebsuite software to help with CRM & time tracking
Adopt CMC Canada guidelines for assignment engagement, approximate fees, etc. (See CMC on-line)
Goal: 50 customers who will recommend NABI at program completion
Maintain up-to-date contact database
Maintain tenant contact
Goal: 4 times per year
Goal: Formal annual performance reviews
Maintain up-to-date contact database
Maintain grad contact
Goal: 4 times per year
NABI creates and delivers a customer-centered, needs based service model
Incubator model design accomodates diverse customer base.
Incubator business model that optimizes the Throughput of incubated businesses while ensuring minimal operating costs and long-term liabilities from investments in infrastructure and human resources.
NABI facilities model aligns to Community and economic social growth
Real Competitive Advantage for each Business Unit
NABI graduates perform at higher level
Brag about NABI's measures everywhere, all the time to everybody
Specific measures to illustrate that NABI delivers on promise to customers
Confirm stakeholder goals (WD, Province, City, tenants/clients)
40 in-house clients, 60 virtual
Goal: 100 clients in coaching by close of 2008
2008 total coaching revenue $200,000.
Average coaching revenue $2,000.
10 in-house grads, 10 virtual
Goal: Annual turnover of 20 grads per year
Goal: Average incubation period is 5 years
Goal: 80% or more of tenants & clients have potential to grow & create "basic jobs"
Goal: NABI growth rate of 20% year over year after 2008.
Research to confirm what really matters to customers
Meaningful measures & KPI's and scope within NABI's Leadership to steward them
Meaningful measures & KPI's and scope within NABI's Leadership to steward them
Google Analytics, Customer Tracking (ACT)
Goal: 80% business survival of grads at 5 years
Goal: First year failure < 5%
Goal: 66% of grads remain in St. Albert
125,000 taxes
800 jobs
Track informally as known; formally annually
Goal: By 2020 (10 yrs. from opening of new facility) 100 new in-house grads
Goal: Attract $1 million in annual new investment
What is NABI
Northern Alberta Business Incubator
 A business resource center for small and medium
enterprises for developing/expanding their business
 The primary objective is to support and grow
businesses that will stay/move into the community or
region
 Through training and coaching, Incubators reduce the
number of small business failures
 NABI should be seen as an investment, no different
than support for SAEDAC, Economic Development or
the local Chamber of Commerce
 NABI contributes directly to non-residential tax base
Core Products
• Office space licenses – market rates
• Ala carte support services (e.g. reception,
printing) (Staples prices)
• Business Counselling (no charge)
• Business Planning programs ($4K per
year per client)
• Network, family environment
Promotion
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Word of mouth
Website
Breakfast seminars
Marketing materials
Relationship with media
Direct marketing
Background
NABI provides economic development support and services to the City
of St. Albert through:
• the provisioning of 41000 sq.ft. of office space and support services,
• business education, courses and seminars, and
• counselling and management advice to start-ups, small and
medium-sized enterprises
NABI is a mixed-use business incubator, one of about 1200 in North
America; NABI is now in its 20th year of operations
NABI improves the chances of client success from 20% to 80% at 5
years
NABI operates as a business in a fiscally responsible manner, while
capitalizing on the benefits of being a non-profit society; most
incubators depend heavily on public funding; NABI receives about
20% of its operating dollars from public sources
NABI currently supports 42 organizations with 154 employees
www.nabi.ca
Phone 780.460.1000
Board of Directors
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(working Board and Cheerleaders)
Jeanette Bancarz
ATB
Al Henry
View Office Technology
Susan Bradley
Bradley Wells Consulting
Andy von Busse
Forte Record Storage
Bruce Randall
Economic Development St. Albert
David Klippenstein
UMA Engineering
Gerry Hood
Canadian Peat Association (retired)
John McDonnell
Brownlee LLP
Yves Lussier
Western Economic Diversification
Cor de Boon
Focus Industries (semi-retired)
Malcolm Parker
Imperial Oil (retired)
Bob Stoyand
Economic Development St. Albert
Jerry Werhun
WCMI
NABI Staff
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Cindy Killoran – Program Coordination
Pat Dawes - Reception
Melissa Rutledge – Administration
Gerry Hood - Maintenance
Dar Schwanbeck – Manager & Head Coach
Coaching Staff
Other suppliers – accounting, janitorial, security,
mechanical, snow
Key NABI Partners
• Western Diversification
• Province of Alberta – Advanced Education and
Technology
• City of St. Albert
• TEC Edmonton
• NAIT
• Shaw Communications
• Avison Viveiros Accountants
• Micro-business training centre
• Deb Barrie – Profit Crankers
• Garth – Locks
• - Housekeeping
Estimated Economic Benefits
Economic Contribution*
2007 Base
Year
2008 @
September
2010
Targets
NABI tenant revenue
contribution to economy
$11 million
$15 million
$20 million
# Businesses – in house
25
37
50
10
50
# Businesses – region-based
# Jobs
68
154
140
Payroll
$3.7 million
$6.2 million
$7.0 million
# Clients counselled on annual basis 100 +
GOAL: Over 10 years, NABI has 100 graduates, generating
800+ jobs, with $125,000 in municipal taxes and $233
million in annual economic benefits for the City of St. Albert.
*NABI estimates based on previous City & independent studies
www.nabi.ca
Phone 780.460.1000
Situation and Results for 2008
• Completed purchase of Campbell Centre, bringing
NABI’s operations to 41,000 sq.ft.
• Added $2.75 million in net equity to NABI’s balance
sheet
• Completed $110,000 in renovations to Mission Avenue
property; new lease in place with City
• Attracted 13 new businesses; 24+ jobs
• Secured $25,000 in increased Provincial support
• Maintained 90% occupancy
• Managed 25% increase in costs...challenges continue
• NABI will cover operating deficits of approximately
$32,000 in 2008 from reserve funds
Coming and Going
New Arrivals
• Tyco Thermal Controls
• AETAS Health
• Nite Tours
• Chantal Ross Design
• SGS Canada
• Clair Chauvet
• Gaia Energies
• Megger Limited
• Michelle Jensen Counselling
• Profit Cranker
• Maxium Financial
• Monetta Planning
• Arbor Memorial
Grads (and Not so Successful)
• Avison Viveros
• WCMI
• Bryden Psychological
• Trakware
• Exciton
• Nail Oasis
• St. Albert Community
Foundation
Looking Forward to 2009
• 2008 and 2009 are transition years as
NABI moves to a doubling in scale of
operations
• $350,000 in renovations planned for 2009
• NABI will cover operating deficit of
approximately $6,000 in 2009 from
reserve funds
Revenue Overview
2008
Projected
2009
2010
2011
Rent
387,343
(Existing Building)
518,244
566,162
577,897
Programs
39,000
45,990
47,370
48,791
Provincial Grants
65,900
50,000
50,000
50,000
City Grant – Ops.
- Mission Repairs
50,000
100,000
52,000
54,080
56,243
Total
642,243
666,234
717,612
732,931
Expenditures Overview
(Figures adjusted for inflation in 3% to 4% range)
2008
Projected
2009
2010
2011
Wages
234,538
249,699
257,190
264,905
Mortgage Costs
22,500
64,479
64,479
64,479
Program Delivery
30,400
30,562
30,729
30,901
Promotion
18,000
13,905
14,322
14,752
Property Tax
40,842
42,067
43.329
44,629
Utilities & Telecom
110,207
125,075
129,673
134,443
Other Operating
108,547
93,553
Repairs & Maint.
GST Recovery
124,600
(15,000)
28,338
29,188
30,064
Building Reserve
0
25,000
25,000
25,000
Total
674,634
672,678
690,690
709,298
Summary Surplus / Deficit
2008
Projected
2009
2010
2011
Revenues
642,243
666,234
717,612
732,931
Expenditures
674,634
672,678
690,690
709,298
Surplus /
(Deficit)
(32,391)
(6,444)
26,922
23,633
Capital (not
included in
expenditures)
$3,550,000
$350,000
0
0
Who do we work with?
We work with businesses who:
• Don’t have enough customers
• Have lots of customers….but little profit
• Are stuck in first gear….lots of activity, less than glamorous results
• Have niggling problems like staffing and employee turnover
• Want better alignment of their products and services with customer
expectations
• Are having trouble getting necessary finance and money
• Feel stuck in the mud and want to break out to a new level of
performance
• May be operating their business without a rudder and need a plan
• Want to grow, but aren’t sure what path to take
• Want to be their own boss and create the independence of having
their own business
• Might be riding dead horses…and are not sure what to do…..
Why do they work with us?
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NABI is a business resource center for small and medium enterprises for developing/expanding
their business
Incubation can be good for most businesses, not just start-ups
Accelerate business innovation and commercialization
Access to capital; matchmaking of local investors and other contacts / customers
Proactive mentoring & coaching
Creates a more holistic environment with the right conditions for business growth
Presence in incubator adds credibility to the business
Foster better use of capital. Capital is often wasted through premature marketing of products and
weak business processes.
Improves a business’s chance of surviving 5 years from about 20% to 80%
Better business plans (real road maps for success); step by step training to give people
knowledge, research skills, planning skills and an action plan
Improved competitive strategy; better sales performance
Better time / activity management
More effective use of resources
Support services (mail drop, reception, state of the art printing & copying, telecommunications)
Accelerated networking and relationship building
Source of inspiration
Benefits all technologies (low tech, high tech, no tech)
Our programs are not limited to in-house tenants; we reach out to neighboring communities and
businesses
What do our customers expect?
• Practical training on how to plan, start or
grow a business
• Advice on what decisions they need to
make to implement their plan
• Support and encouragement throughout
the business building process.
Twenty-two challenges to effective
business building
1.
Lack of clear goals and a viable vision; no tie to
personal goals
2. Buy-in to the plan
3. Specification sickness
4. Trying to do to much
5. Not setting goals and timelines to complete the plan
6. Lack of clear product focus
7. Insufficient customer input…you don’t know your
customer as well as you think you do
8. Lack of focus on few core products
9. Not engaging end users vs. brokers
10. Insufficient market research
11. Not really understanding the “available” market
Twenty-two challenges to effective
business building (continued)
12. Over-emphasis on production, finance and process
13. Under-emphasis on listening to customers
14. Failure to use “throughput thinking” and to concentrate
resources appropriately
15. Weak organization (lack of sales person, no advisors,
inexperienced management team)
16. Weak image / brand
17. Use of traditional project management versus critical
chain project management
18. Lack of real competitive advantage (red versus blue)
19. Start with revolutionary product vs. an existing market
20. Overemphasis on price….price wars are never won
21. Working “in” versus “on” the business
22. Planning is never finished
What our customers say…
"Our business has grown three fold since moving
in from our home offices and now it's time to
move on. We have really enjoyed our time with
NABI and staff Lorne, Dar, Pat and Irene, and
the support that they have provided for us. The
incubator has definitely helped move our
business from part time to full time. We have
grown now to the point that we can stand on our
own and grow within the community."
Paul Falkowski & Bob Holm
New Dimension Investments Inc
Target Customers
Aspiring Business Owner
• Have a concrete business
to develop
• Need a business plan
• Want practical, hands-on
training and coaching to
help them through startup
Existing Business Owner
• Work mostly in the
business, not on the
business
• Never prepared a
business plan or didn’t
follow through
• In business but barely
making it
• Want practical support to
prepare and implement a
business plan
Useful Tools
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Entrepreneurial Test
Roadmap
Coaching Model
Planning Frameworks
Programs
• Tilling the Soil of Opportunity NxLeveL Guide for Agricultural
Entrepreneurs
• Get the Buzz on Biz!
NxLeveL Guide for Enterprising Youth
• Business Plan Basics
NxLeveL Guide for New Entrepreneurs
• Take Your Business
to the Next Level
NxLeveL Guide to Growing Your Business
• Canadian Microbusiness Training Program
Complete Business Planning Guide
Characteristics of the ideal
business
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Sells the world
The $/t ratio steadily increases
Inelastic demand; not easily copied
Minimal labour needed
Low overhead
Requires little investment
Cash billing
Free from regulation
Easy to move
Satisfies your intellectual needs
Leaves some free time
Income is not limited by your personal output
So you want to take your business to the next level.
What are the hurdles?
1.
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Personal Readiness
Strategic Versus
Tactical Thinking
Viable Vision
Customer-Centered
Culture
Integrated, Balanced
Competitive Strategy
Shift From a Cost to a
Throughput Model
Constraint
Management (Sales)
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People and Capabilities
Organization Structure
Leadership
Technology
Accelerators
12. Driving Improvement
13. Measurement
14. Up-To-Date Business
Plan
Criteria for Working with NABI
1. Viable business idea
2. Passion to grow a business…not just
create a job
3. Willingness to learn
Formal process in place…but not rigorously
followed at the moment.
Graduation Criteria
• Formal criteria in place, but rarely used
• Practical policy…like teenagers, they know
when its time to go.