Profile of a Startup Customer
Business incubators mentor companies through childhood while business accelerators guide them through adolescence into adulthood. By Fernando Sepulveda Managing Director, Impulsa Business Accelerator There seems to be a considerable amount of confusion about the differences between business accelerator and business incubators.
Many people use the terms interchangeably, but there are a number of elements that distinguish one from the other. At the same time, there is indeed overlap across incubator and accelerator services, which explains much of the confusion.
The aim of this article is to help distinguish the difference between the two. It is sometimes easier to grasp the differences between two adjacent paradigms by first knowing about the elements they share.
For example, incubators and accelerators both prepare companies for growth. There are roughly three major stages of life: Like a father to a child, an incubator provides shelter where the child can feel safe and learn how business plan for startup accelerators walk and talk by offering office space, business skills training, and access to financing and professional networks.
The incubator nurtures the business throughout the startup phase childhood and provides all the necessary tools and advice for the business to stand on its own feet. However, while learning to stand on its own is a great entrepreneurial achievement, the walk through adolescence is often wobbly and filled with challenges, and the need for guidance is far from over.
One major challenge facing most companies who operate on the verge between childhood and adolescence is that sooner or later, they get stuck in the trenches of day-to-day operations, and more often than not fail to incorporate long-term strategic planning in the development of the business.
The company may lose track of its unique value proposition - its identity - during this phase. It is at this critical point in the business life cycle that most incubator programs end, as the firm is technically ready to spread its wings.
Nonetheless, the journey towards sustained growth is far from over. Often it becomes necessary to receive advice and guidance from a business accelerator. In other words, while incubators help companies stand and walk, accelerators teach companies to run. Incubator programs last for varying durations and include several forms of mentorship and support, and nurture the business for the time it takes for it to get on its feet, sometimes for many years.
On the other hand, a business acceleration program usually lasts between months. The emphasis of the business accelerator is on rapid growth, and to sort out all organizational, operational, and strategic difficulties that might be facing the business.
It can be understood as a holistic business advisory service, often bearing strong resemblance to traditional management consulting practices, but adjusted to fit small and medium sized organizations.
An established company can still be stuck in the trenches of operations, or face other obstacles in accelerating their business. Hence, be it a young or established company, business accelerators can step in and straighten out the journey towards adulthood.
Both incubators and accelerators are important resources to ensure the growth of firms, be it from early startup or in becoming established organizations. And as we all know, the growth of firms is the lifeblood of any economy.A business plan describes how a new business will meet its primary objectives over a given period of time.
It is both a strategic document that can act as a roadmap and a tool for securing funding and communicating with stakeholders. For a startup business, planning is key to developing a thorough. Accelerators may share with these others the goal of cultivating early-stage startups, but it is clear that they are different, with distinctly different business models and incentive structures.
Startup Accelerator Programmes: A practice guide This practice guide explains how accelerator programmes work and supports you to think practically about setting up your own programme. business plan.
Startup Accelerator - Business Plan - Free download as PDF File .pdf), Text File .txt) or read online for free/5(17). Where does it get the money to survive?
What is its exit strategy along the startup process? Update Cancel. ad by The ExecRanks. What do all successful entrepreneurs have in common?
but usually, that kind of money goes into public sector accelerators, rather than private accelerators. Generally speaking the business model is investing. Some accelerators have themes or focus on certain business sectors such as education, healthcare, or finance. Some are harder to get into than others—the most popular accelerators are bombarded with applications, making it difficult to get noticed in a sea of startups.