You just started a new business but reached the point that you have no clue what to do next. You have an idea of what you want. However, you do not know how to execute it or have little to no funding to do it. That’s when you realize that you could use a little advice and direction.
Upon research, you stumbled upon startup accelerators located in your country. They offer a six-month program with everything you need. They contribute to coach, mentoring, and investing. Still, going to a path that you have never walked on can be daunting.
So, suppose you want to join an accelerator program but is too scared to go this route. In that case, this article will tackle six accelerator benefits and help you understand why you should join an accelerator program.
What is a Startup Accelerator?
Basically, a business accelerator is a big company that recognizes and supports early-stage companies with vast potential to grow and evolve. Typically, startups chosen by accelerators are already started their company, demonstrated growth, and already have a minimum viable product (MVP).
This program involves mentorship, coaching, education, and sometimes funding. The main objective is to help them execute their MVP, identify birth pains, and help allocate financial resources through networking.
Some accelerators even provide a small seed investment and a dedicated accelerator mentor. Usually, the program ends with a presentation featuring startup growth and development achieved throughout the program.
Is Business Accelerator perfect for you?
The acceptance rate for startup accelerator vs. incubator programs is relatively lower. Most accelerator programs have limited space, mentors, and capital available to participants. Thus, most accelerators only take companies ready to develop and those that already have a target market.
In addition, most accelerators mentos a business in exchange for an equity cut. So as for early-stage startups, the accelerator is not great. Likewise, a business accelerator is perfect for companies with a validated idea or MVP.
But if you are rejected by an accelerator program, don’t worry. You can join an incubator program instead. Check our startup incubator program for more details.
6 Startup Accelerator Benefits and Why You Should Join This Program
As mentioned earlier, an accelerator offers a springboard to success to start entrepreneurs. It provides access to expertise, knowledge, resources, network, and others needed to get your business off the ground. To give you a better idea, here are some 6 accelerator program benefits:
1. Provides a comprehensive support
Operating a new company can be challenging and arduous. You need to know and do several things, from developing an MVP to managing a business process.
This is where accelerator can benefit you. The most accelerator provides access to people and mentors that can help you in your business. This is not only exclusive to the encouragement type of support. Most accelerators have a network of professionals and experts such as CFOs, attorneys, accountants, and others that most businesses need for consultation and planning. Likewise, accelerator benefits you by providing quick access to key industry experts and advisors that could otherwise be harder to contact or hire.
2. Access to investors
While some accelerator program does not give seed money or funding, one great startup accelerator benefit that you can get is that you can build a network with personalities who could potentially become an investor.
Usually, startups will access potential investors during the “demo days,” where some investors are invited to watch the presentation. You could potentially meet an entrepreneur who thinks your business is the next big thing. Demo days also have time to meet and mingle with investors.
This occasion can create an opportunity to get additional funding offers.
3. Offers accelerated knowledge
As mentioned earlier, accelerators have access to a vast network of experienced and skilled experts and mentors. These personalities have years of experience and skills. They have accumulated so much knowledge and information on how to help a startup.
You can speed up your startup’s growth and development through this information. You can reinvent your startup’s path by applying practices acquired in the program and avoiding any blockage or mishaps to your business. Your strategy is more calculated and has an improved chance of success through these.
In addition to this, most accelerator programs teach you all the necessary skills to run a business – whether it’s technical, marketing, financial, or legal. An accelerator program can be an enticing education avenue, where founders learn how to run their business at a breakneck pace and intense period. You can understand years of experience within the month.
4. Delivers a gateway to potential consumers
Likewise, another startup accelerator benefits are that it helps you identify your target audience and creates a gateway to those audiences. Some of your target consumers might be present during the demo days. This provides you an edge to get your brand recognition as people hear about your startup and your product during the event.
5. Develops plans for a long-term view and a bigger picture
As a start-up entrepreneur, sometimes, it’s impossible to plan and look beyond the first few months of your company. However, it’s essential to prepare for the long term and work towards your company’s future.
Likewise, one excellent accelerator benefit is that they help you see your company’s bigger picture and future. Experienced accelerator mentors will help you see the complexity of your business that will develop in time. They will steer you in the right direction in dealing with this issue.
6. Identifies Risks
The risk of failure is inevitable in any business. And as a startup founder, it may feel like the risk is everywhere, including market expansion, products you are offering, new concepts, and more. This can sometimes limit you and your business’ capability.
An accelerator can help you identify these risks and help you minimize them. In addition, mentors can help you proactively take a chance and manage it effectively.
Conclusion
In the end, participating in an accelerator program is helpful for any startup. A great accelerator can absolutely give you a unique and once-in-a-lifetime experience that can kick your company off the ground. With these benefits in mind, you should consider the business accelerator.
Still, don’t expect too much from it. It does not automatically give you exposure, funding, or customers. You need to do all the hard work and planning. Remember that accelerators are here to guide and teach you, not do all the work building your company.
Make sure that you do extensive research before joining a program right away. Find a program that is right for your business. If you are currently looking for an accelerator program, check out the Flexilabs corporate accelerator program! Contact us for more details.