Are startup accelerators worth it?
One of the earliest challenges as a startup founder for me was to keep up the motivation and drive to build the business idea. Apart from developing the business plan, product, investment and even the sales cycle, the toughest part was still being amongst a group of people who could understand my journey and support the venture.
What is a startup accelerator?
As the name indicates a startup accelerator is an organisation that supports the growth of startup ideas. Normally an idea stage only includes thinking about a possible solution and gap in the market.
what startup accelerators really do
During incubation — the idea is developed into a business plan which includes market analysis, developing minimum viable product etc. Please note however depending on the stage of your business — you’re either ready for an accelerator or an incubator ( Difference between accelerator and incubator)
Once these are complete, your first sign of success is a client signing up for your solution. Accelerators help develop your already established idea into a fine-tuned business plan and present it in the desired manner.
Accelerators and Incubators pros and cons
This is precisely where I began to find answers for — Are startup accelerators worth it? The answer naturally depends on your business and the type of work. But startup accelerators can add tremendous value to your business idea. But please take it with a pinch of salt because your best hope for the business idea will be to outgrow this phase too.
Are startup accelerators worth it?
As an entrepreneur and founder, your most important resource is time. Time and again I’ve asked myself this question — are startup accelerators worth it?
Advantages of Startup accelerators
You’ll have obvious benefits being in a startup accelerator network. You can choose either an incubator or accelerator based on the maturity of your business idea.
Make sure however that you select these networks based on what helps you the most. Advantages of Startup accelerators are
- Exposure to network and standard business principles
- Networking and awareness building
- Peer group
- Introduction to investors etc
- Support in developing business plan and pitch
Disadvantages of startup accelerators
As with everything else — not all accelerators are good. Some have their own agenda which makes it difficult to focus on work. In my early days, I was coached by people who neither understood the industry nor the models for my area of work.
On top of this, I lost a lot of my time in networking which didn’t introduce me to the right people.
Finally, my largest complaint was the innumerable number of pitching competitions which led to very little growing opportunity and time for my business idea. Other general disadvantages are
- Some accelerators take a cut in your equity
- They might not understand about your business at all
- Lack of exposure or network of people relevant to your area of work
- Too much focus on pitching rather than a tbusiness building
Ultimately — are startup accelerators worth it? The answer is subjective but it’s up to you. Whatever gives the best use of time and your limited resources ultimately drives the answer to this question
Originally published at https://inspire99.com on January 3, 2022.
