When your business really starts getting off the ground, it can be difficult to determine how to fund your projects, and which funding is best for you. There are many avenues to choose from, but we’re here to help. Are you considering an accelerator or an incubator? Not quite sure what to choose? Make your decision based on our reliable, tried-and-true information.
An incubator gives entrepreneurs a little time, and much needed breathing room, to round out their business ideas. Flesh out the core of your business, your ambitions for the future and the product you want to sell.
Accelerators are exactly as they might sound! They expedite the growth of your company through an MVP – minimum viable product. Unlike the flexible time frame of an incubator, wrapping up when a business has the right product to pitch to consumers, an accelerator is usually over the duration of a few months, in which an entrepreneur benefits from bonuses such as mentorship and funding.
Accelerators, what about them?
The benefits of choosing an accelerator seem quite attractive to many businesses! Who doesn’t want networking, mentorship or funding? But, accelerators have an intensive application process: the most renowned accelerators are selective, and accepted companies have often already demonstrated some measure of success – with an MVP in the works, and growth on the rise.
Accelerators, with their vast network and resources, provide investment and easy access to experienced mentors. If your business idea is proven, with some evidence as to this, an accelerator is a viable option. You will end your collaboration with your chosen accelerator with a presentation, depicting the great growth and development you’ve experienced under their oversight!
For example, Clear Start can provide everything that any brand needs to accelerate growth. With a wide range of partners, they can introduce you to some of the biggest brands. There are reputable partnerships out there, waiting for you – you’ll be rubbing shoulders with the latest and greatest in no time!
There are many things to consider before joining with an accelerator. Is it the right moment for your business? Timing is everything – if you’re still not sure on the staffing or management of your business, an incubator might be better for you. Are you experiencing fast growth? If not, an accelerator isn’t right for you. And, finally, are you willing to relocate? If you choose an accelerator program, they might ask that you move operations albeit temporarily. Be prepared to do so!
Let’s talk about incubators
Incubators select companies, not just through an application process (although this is common) but from recommendations from their own advisors. If your business is garnering attention, and you have a solid idea in development, it’s likely an incubator will lend their help. There isn’t always, or often, a need to relocate for a long period of time. And, importantly, you are given time to collaborate with other entrepreneurs.
An incubator will assist in developing your ideas, identifying your demographic and ensuring your product is the right fit for your given market. This process might last a few months or more, and you will present your business idea to your incubators when the time is right!
Make sure you have the right guidance available to you, and if you’re willing to wait for further funding – instead, focusing on enhancing your business model and plan – an incubator is perfect for you.