New California IHubs Help Business Startup Companies

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Business Formation & Planning on Tuesday, October 15, 2013.

It is in everybody's best interest to support the growth of new startup businesses which can help to stimulate the economy. New companies do this by spending money on resources and services required to begin a new business as well as hiring workers needed to operate the business. This is why federal, state and local governments create initiatives and programs designed to aide businesses through their beginning business startup phases. California has taken this route in its new initiative to help new science and technology companies.

The state government has recently initiated four new startup innovation centers designed to help new businesses in the agribusiness, sustainable construction technology and healthcare industries. These centers, named iHubs, will partner with various local universities. The four iHubs located throughout the state will provide startup companies with assistance and resources during the beginning phases of their endeavors.

The governor formally adopted the initiative after signing Assembly Bill 250, providing a grant fund dedicated to collecting and disbursing private investment funding for new businesses to begin working with the iHub centers across California. State officials hope that the new initiatives will improve the California economy. They also hope that the new iHub centers will help to create job growth throughout the state as well.

Although help from government-sponsored initiatives can be helpful to a business startup in California, it may require more than this to make a new company successful. Having a solid business plan will significantly increase a company's chances of being profitable. Also, ensuring that the business plan conforms with applicable laws and regulations is important as well. This could help prevent potential legal disputes which could prove to be costly and could even result in a shutdown of the entire company.

Source: Sacramento Business Journal, California expands iHub program for tech, science startups, Christopher Arns, Oct. 9, 2013

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