Business Incubator Series: An Interview With Dr. Tom O’Neal, Executive Director, University of Central Florida’s Business Incubation Program — Orlando, Florida (Part 3)

By guest author Irina Patterson and Mridula Velagapudi

Irina: What are the tools and methodologies you use in your entrepreneurship class?

Tom: One of our staff members runs the program, and we bring in external consultants, subject matter experts, for each one. One of my staff members sits in on the class every time and observes the clients. On the last night, the clients have to give a full presentation, and we evaluate the companies’ business opportunities. Those evaluations are entered onto a list, and if a company applies, we look at all of the evaluations and notes of instructors notes and involved judges. Then we make a decision.

One of the good things about the class is that a lot of people never apply after making it through the class. You have to formally apply after the class. On the last night of the class, companies can apply.

Most of the ones we know we would not accept do not apply. It makes my job easier; I don’t have to say no.

I will give you an example. One person went through the class, and I ran into him years later and he said, “Thank you for the classes. It is the best thing you did for me.”

Then I pulled out my records, and I realized he hadn’t applied! I asked, “Why was this the best thing that ever happened if you didn’t apply?” He said, “I realized I should not be an entrepreneur. I knew it wasn’t for me. I kept my job and I am happy. I have my family still with me, and I have my money still!”

So, the best thing we did for him was to expose him to what it was really going to be like. He had a misperception of what it would be like to run a company. We opened his eyes for him, and he was really happy about that.

Irina: There is a joke that the business plan exists for the purpose of convincing yourself not to go into business for yourself.

Tom: That is true! That is one of the possible outcomes. Not starting a business is a legitimate alternative, you need to understand.

Irina: What are your metrics for success? What do you measure?

Tom: We measure growth in the companies; we are trying to create jobs and help our economy. We measure many patterns and put them all together. We look at them individually and as a whole.

We hire someone to do our economic impact surveys once every couple of years. Growth in revenue and growth in employees are probably the two things we look at most often because it is a fairly good thing: You get a salary, and we like to know that because we want to create higher-paying jobs.

Irina: Would you describe some of your success stories?

Tom: There are quite a few. If you want to go to our website, there is a list of
of our clients and graduates: www.incubator.ucf.edu

Irina: On average, how long do companies stay in the incubator?

Tom: About three to five years.

Irina: What is your own business model, the business model of the incubator? How do you fund your activities?

Tom: You know, that was a startup, too. We are not raising money. We partner with our local communities for most of the funding. We charge clients fees, but it doesn’t pay for all of the costs. So, the cities and counties provide funding; everyone pitches in some funds.

Irina: I know you charge  $400 for the class. But when people enroll in the incubator, are there any other fees they have to pay for the services you provide?

Tom: Not for the services, but they have to pay for the space they occupy.

Irina: Do they have to be physically present at the incubator?

Tom: No, we have virtual programs. They pay around $200 a month to belong to the virtual program.

Irina: Do they get additional support from the university and local organizations?

Tom: The local counties and the cities where our sites are located usually help to pay for their rent and any extra costs they have. The counties and the cities where our sites are located are significant financial contributors to each program.

This segment is part 3 in the series : Business Incubator Series: An Interview With Dr. Tom O’Neal, Executive Director, University of Central Florida’s Business Incubation Program -- Orlando, Florida
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