Potential small business owners in Cold Lake now have a place to hatch their ideas, thanks to the new business incubator.
Potential small business owners in Cold Lake now have a place to hatch their ideas, thanks to the new business incubator.
"The business incubator is really an opportunity for local startup businesses to get going," said Kathryn Hotte, advisor with the Rural Alberta Business Centre (RABC) in Cold Lake. "Of course, the main concern is always rental commercial space and finances. In this business incubator they get to rent space for a relatively inexpensive amount."
Last week, Hotte officially opened up the area's first business incubator in Cold Lake. A program through the RABC, business incubators have been popping up all over Alberta to try and give hopeful business owners that extra little boost.
The program is more about just a space to rent, though. Businesses that move into the incubator also get use of general office equipment, a reception and meeting space, as well as access to mentorship from the RABC and other local businesses that have pitched in.
"They get free workshops through the RABC and we've arranged with a few local experts to give them free consultations, whether it has to do with legal advice or accounting or graphic design," explained Hotte.
Not just anyone can move into the incubator, there is an application process. While a potential business doesn't need to have everything perfectly figured out, Hotte said that they want people who have made a solid attempt at developing a business plan, marketing and has strategic goals.
"We want someone who has really put thought into it. Maybe someone who has been working at home out of their basement and have thought a professional space would do a lot for their business."
Hotte added that it needs to be a for-profit venture, and she will also look at if they have the funds to pay rent, what the need is for the service or product in this area, and what potential the business has to grow and succeed.
There are three offices in the incubator for businesses to rent ranging from $400 per month all-inclusive to around $650 per month, dependant on the type of business and the utilities needed. Businesses rent month to month, and can stay in the incubator for a maximum of one or two years.
"At some point they will be able to leave the coop and fly out on their own, then we'll bring someone new in," said Hotte. "If you look at the statistics of incubation, the chance of success is much higher when you're in an incubator."
Earlier this year, the RABC made a delegation to City Council asking for funding to get this program off the ground. While they haven't received any yet, Hotte said it's something she's still pushing forward on as they are a not-for-profit organization.
"Basically, the City came back to us and said 'I think it's a great idea but I want to see something on sustainability'. I just had a meeting with a representative from the Government of Alberta looking at putting together a document on sustainability to take back to the City and see if they would be willing to be part of this program."
Hotte continued, "The City, I think, it's a vested interest for them to be apart of it because it is business related and I like to think we are a business friendly community."
She noted that they were lucky to find a building that was less than half the cost for rent and utilities that she budgeted for. The final rent and utility costs came in at a total of $28,000 for 10 months, substantially less than the over $70,000 expected.
So far, there a couple interested potential business that will be touring through the incubator. There will also be a waiting list established for those who meet the criteria to move in as soon as another business has left.
The new business incubator is located at 5412 55 St., Unit A. Anyone interested in being part of the incubator program, or any established businesses that would like to support the program, can contact Kathryn Hotte at 780-812-6156.
