THE NASHVILLE BUSINESS INCUBATION CENTER

 

 

            The Nashville Business Incubation Center (NBIC) is the product of an economic development project between the Tennessee Valley Authority and Tennessee State University.  The full-time program for small business entrepreneurs is a community outreach service of the TSU College of Business. Housed and coached on-site for a period up to five years, companies may enter as start-up or first-time expansion entities.  There must be a marketable product or service in place; a formal business plan; a business license; and a visible means of financial support for at least the first twelve months of operation.  The business objective is to help reverse the high failure rate of small businesses. Business residents of the Center receive managerial/technical assistance, shared support services, below-market rental rates.  There is also a short-term revolving loan fund for temporary cash flow problems. 

            In 1983, the Economic & Community Development Department of the Tennessee Valley Authority submitted a proposal to Congress for a three-phased Nashville project.  The purpose of the proposal was to assist in job creation in economically deprived areas of Nashville.  The Incubation Center represents Phase Two of the Nashville project.  It opened in 1986, as an outreach program of the Tennessee State University College of Business, with 10 client-businesses.  The Center is designed to help decrease the enormous failure rate of small businesses and administer supportive services at huge savings.  This is achieved by providing managerial and technical assistance as well as business space at below market rates within a nurturing atmosphere.  TVA provided a total of $1,050,000 for the construction of the original 18,000 square-foot facility, and operating funds for the first six years. The Economic Development Administration awarded a 1.4 million- dollar grant for physical expansion of the facility in 1994.  The expanded 39,000 square-foot facility, houses up to 22 businesses and includes a 2,000 square-foot training room for community-based entrepreneurial training. Participants may stay at the Center for a maximum of five years. The Center’s main goal is to produce successful businesses that are financially viable and freestanding when they leave the incubator. 

COMMUNITY TRAINING CENTER

            The NBIC operates a 21st century multimedia training facility that is available to community agencies and organizations for workshops and classes in their respective industries.  Presentations have included estate planning; telecommunications for small businesses; and small business accounting.  The training center has also hosted retreats for financial institutions and non-profit boards.  In the future, the training center will be marketed to home based businesses as a place to conduct business.

GRADUATES

The Nashville Business Incubation Center has served 67 businesses, creating 474 jobs and adding more than $30 million to the Middle Tennessee economy.  Successful graduates include:

 

EXPERIENTIAL LEARNING OPPORTUNITIES

 

The center serves as a working laboratory for students, primarily from the TSU College of Business. Students are assigned to resident businesses according to their academic concentrations and according to the specific needs of companies.  Students have developed data systems, designed marketing strategies, and set up accounting systems.  Many students come to the NBIC as interns, fulfilling requirements of a national foundation grant.  Other students operate in consulting teams and are available to companies in problem-solving, troubleshooting and long-range planning activities.  NBIC is also a resource for business students from other Middle Tennessee colleges and universities who tour the facility; interview business owners; and learn first-hand the challenges of starting a business.

               

Criteria for Occupancy of the Nashville Business Incubation Center 

 

A.    SELECTION CRITERIA

 

  1. A "start-up" business; defined as any corporation, partnership, or sole proprietorship, which has a developed product or service, ready for market, with marketability identified; with personnel needs and costs stated; and with an identified ability to finance its operation for at least one year. 

 

  1. Must be able to present this necessary detail in a well prepared business plan.  The business plan should be submitted along with application.

 

  1. In some instances an established or existing business may be considered for relocation to the Center.  Again, a business plan will be required to obtain consideration by the committee.

 

  1. No branch or subsidiary operations will be considered.

 

  1. Business may be for-profit or may be non-profit.

 

  1. Priority for consideration:

a.      Light Manufacturing

b.      Service related with potential for significant growth and development.

c.      Other, with potential for employment (Potential for growth and development will be a key factor in the selection process).

 

B.    BUSINESS PLAN REQUIREMENTS

 

      The business plan should include:

 

  1. A description of the business.

 

2.     A description of product/service to be provided.

 

3.     Discussion of marketing strategy and product/service distribution method.

 

4.     Resume of owners and key personnel.

 

5.     Projected financial statements (3 years).

 

6.   If the business has been in existence, financial statements for the current operation should be submitted. These include balance sheet, profit/loss statement and cash flow statements.

 

7.   If no historical financial statements are available, please include personal financial information of the owner(s).

 

8.   List the name of the financial institution holding the business’ bank account.

 

9.     Identification of equity and borrowing requirements and ability to obtain such required financing.

 

  1. Indication of potential for growth.

 

  1. Indication of number of employees and employment functions (i.e., skilled, unskilled, managerial, clerical, etc.)

 

C.  ADDITIONAL CRITERIA

 

  1. Occupancy will be limited to five years maximum, based on a one-year lease.  Annual lease renewal will be at the option of the Admissions Committee based on recommendations of the Center Director. Consideration will be given based on how well the individual company has met its operational goals, based on its previously submitted business plan, and on its continuing need for the Center's services and cost reduction benefits.

 

  1. Polluting industries or those using dangerous materials will not be allowed in the Center. The Center is located in fire zone Code 1, which limits types of industries.

 

  1. All businesses must obtain a business operating permit from the Department of Codes Metropolitan Government of Nashville-Davidson County.

 

  1. It is important that the business has a relationship with a financial institution. That information should be submitted.

 

  1. Each business is responsible for providing its own equipment and supplies to furnish its respective area.

 

 

TENANT SELECTION IS BASED UPON BOARD REVIEW OF BUSINESS PLAN