STARworks Incubator Policies

STARworks Center for Creative Enterprise

Incubator Policies

Updated: September 8, 2011

Contents

• Introduction

• Application and Selection Process

• Business Assistance

• Annual Assessment

• Lease Policies

• Tenant Graduation Policy

Introduction

The mission of STARworks Center for Creative Enterprise is to help small businesses grow by providing affordable space, shared services and equipment, along with management assistance services, thus helping businesses succeed, creating new jobs and bringing new dollars into the region’s economy. STARworks is committed to cultivating the entrepreneurial community within Central Park NC, the parent organization of STARworks.

Located at 100 Russell Drive in the town of Star, STARworks is one mile off of I-73/74, less than one hour south of Greensboro. STARworks is housed in a former sock manufacturing facility and has 187,000 square feet of space, office and manufacturing. The Zoning is Light Industrial. 

STARworks is a hybrid business incubator in that it houses some anchor tenants that are considered permanent and others that are expected to graduate and locate in a Central Park NC community.

Businesses engaged in a wide variety of functions including light manufacturing, distribution, technology, culinary, or service activities can apply for admittance into. The facility is currently not conducive to retail activities, although it is acceptable for businesses to engage in a reasonable amount of retail sales.

Application and Selection Process

The Board and Management retain the right to alter the criteria based on the current occupancy rate and other factors. The following list constitutes the qualifications and expectations for a successful applicant. Candidates should meet the majority of these qualifiers:

• The business should be 2 years old or less. Some businesses operating longer may be permitted if the business is going in an entirely new direction (i.e. significantly re-organizing for expansion from home-based) or the business is new to the region.

• The business is required to have a complete, specific and realistically viable business plan. Potential STARworks tenants must prepare a business plan which contains, among other sections, executive summary, potential markets and size of market, growth potential, jobs to be created, financial projections, exit strategies and best estimate of length of tenancy. Coaching is available for business plan development.

• The business is anticipated to grow into a sustainable company and function outside the Incubator within two to five years.

• Capital/Means of Support - A candidate for admission should have adequate capitalization to provide for four to six months of viable operation (to be outlined in the business plan); or if a very small operation, have sufficient means to cover office lease and personal living expenses for an extended period while business is growing.

• Business should have the potential to employ others.

• Business should be compatible with the STARworks community, and demonstrate willingness to support and promote the concept.

• Applicants should possess significant knowledge of their chosen field, and be familiar with basic business practices.

• Businesses owners must be willing to conduct business in an open, collaborative and cooperative fashion with the Incubator, including regular status reports to the Executive Director.

• Limited Duplication of Existing Businesses - Entry of new businesses that closely resemble existing tenants will be judged on a case-by-case basis to rule out potential conflicts. Also, the presence of a significant number of identical/similar businesses already in the community may be a limiting factor.

• Non-Profits can be considered for admission.

Selection 

All applications for admission to STARworks will be reviewed and a determination made by Management Committee, consisting of the Executive Director, Associate Director, Building Manager and chairman of the STARworks Tenants Committee.

Applicants will be notified in writing as to the status of your application, usually within 30 days of its receipt.

Business Assistance

Companies are encouraged to consult regularly with staff members and the Management Committee, who provide ongoing assistance to establish a plan for technical assistance and training.

Quarterly workshops are scheduled that provide training in

• Business planning
• Human resources
• Marketing
• Access to capital
• Insurance
• Legal issues
• Others as requested

In addition to our in-house services, The Incubator Center is tied into local, regional and statewide networks, including:

• SCORE
• Community College Small Business Centers
• Small Business Administration
• Small Business Technology and Development Center
• NC Rural Center
• Agriculture and Engineering Cooperative Extension
• Chambers of Commerce
• Funding Sources

Assessments

Companies are required to set milestones that are reasonable to themselves and STARworks Management Committee. These milestones may include benchmarks for product development, funding, job creation and customer acquisition. STARworks Management will review progress toward these milestones periodically.

Tenants will meet, at a minimum, semi-annually with the Executive Director and/or members of the Management Committee to provide up-to-date financial statements for the purpose of evaluating the company’s performance and reporting. Milestones will be reviewed and realigned by mutual consideration.

Lease Policies 

Leases will not be executed until the applicant has provided a complete Business Plan and application.

The company’s principal owner(s) enter into a formalized lease agreement.  Each prospective tenant is encouraged to have the lease reviewed by their attorney.

STARworks does not utilize a boilerplate lease, but tailors each to the company’s needs with the following considerations:

• Space will be tailored to individual business needs and clearly partitioned without interfering with building heating systems and common access areas.