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Advantages of Working with a Business Accelerator

 

Advantages of Working with a Business Accelerator

You have your start-up idea implemented and running, everything seems to be going well… and then, your business plateaus. DANG IT is what comes to mind! And while we feel for you, know that this is completely normal and happens with most small businesses.

Nearly 83.1% of North American businesses are built from the bottom up by founders. Only 9% of these have a degree in business! So naturally, about 26% of entrepreneurs turn to the internet for advice. Honestly, internet definitely is the biggest resource of knowledge and advice. However, as a business owner, you’d need advice, knowledge and guidance specific to YOUR industry, product or service. And above all, to your specific situation! This is when you could start thinking about a business accelerator. There are many advantages of working with a business accelerator, but we are going to share the top 5 with you.

First of all, we know what you’re thinking – WTH is that even? It might not be a typical term you’ve come across, so let’s break it down for you…

Who is a Business Accelerator?

A business accelerator is a program that gives companies access to various business support services to expand their service or product into new markets. The companies that work with accelerators are tuypically startups and SME’s, that have moved beyond initial stages of getting established and are seeing their business plateau. Businesses accelerators offer a fresh perspective through mentoring programs apart from team support, financial support and other services that will help push the startup forward and succeed.

Now let’s jump back to the 5 top reasons why you should work with a business accelerator to help grow your business.

  1. INVESTOR ACCESS

While business accelerators do not invest in or fund start-ups, they do have access to a directory of investors, who are interested in investing in businesses that are unique and have the potential to be successful. A lot of accelerators also hold meet and greet sessions, where many investors participate in order to browse through the various start-ups there are.

If you’re wondering why people invest in start-ups, which is fairly new, unheard of and filled with uncertainties, remember that some of the biggest companies today were start-ups once that was funded by an investor who believed they would succeed. Some examples of super successful start-ups, aka Unicorn Start-ups include Uber, Airbnb, FreshWorks, SpaceX and Instacart.

For investors, funding start-ups is a great way to tap into a large pool of talent. This is a reason why corporate giants such as Microsoft, Google and Unilever, amongst others, have accelerator programs.

2. MENTORING AND COACHING

One of the biggest benefits of working with a business accelerator is having a mentor or coach. Most accelerators are packed with so much knowledge and information, owing to the years of experience they have gained by being in the field and getting their hands dirty. Not only have they worked with several entrepreneurs, in most cases, they are or have been entrepreneurs themselves. They have faced most, if not all of the problems and fears that you may be currently facing.

“Learn every day, but especially from the experience of others. It’s cheaper.” John C. Bogle

Learning from others’ mistake is not only wiser but cheaper. And you have that opportunity with a business accelerator. Learn from their experience, avoid the mistakes they’ve made and understand what worked for them. This will definitely improve your chance of success!

3. TEAM SUPPORT

One of the biggest time-suck for start-ups and business owners is managing all aspects of business as a single person. The work has got to be delegated so you can focus on the actual business. But how do you do this without a team? Hiring a full-fledged team is extremely expensive! According to Investopedia, the cost of recruiting a person can be as high as $3,500. YIKES! Then there is the cost of training them, which could cost an average of $1,286 per year, and salary and benefits, which could cost anywhere between $50,000 and $70,000 a year. These are huge costs for start-ups to incur when you don’t have disposable funds.

This is when working with an accelerator can be beneficial. Business accelerators have a full-fledged team of experts that handle everything ranging from bookkeeping, marketing, copywriting, operations, social media, graphic designing and more. Having a fully functional team that will bring forth their expertise to build your business, only a tone-tenth of the cost is something you would be crazy to overlook.

4. NETWORKING

For any business, whether its B2B or B2C, networking is crucial. This is where one gets the opportunity to meet a lot of people that could be helpful in advancing your business, as your customer, investor or even just brand advocates who help spread the word.

In addition to investor access, business accelerators have a huge network of social and professional circles that you could meet, if you collaborate with them. Meeting new people will also give you fresh ideas and perspectives about your own business. You have the opportunity to learn from different people’s experiences, who come from various walks of life.

Networking also builds your confidence to a great extent, having you interact with a lot of people. The more you network, the more you grow and so will your business.

5. RISK MANAGEMENT

Quitting your corporate job to become an entrepreneur is certainly a bold decision that is not for the faint-hearted. But that isn’t to say that an entrepreneur is fearless. There is fear – the fear of failure is one of the biggest and is on every start-up founder’s mind.

While no one can foresee what the future holds, one can certainly anticipate the various problems that a business can run into. This is when an appropriately crafted risk management strategy comes into play. When this is created by someone with years of experience being or working with entrepreneur, the odds of success are obviously better than a novice. A business accelerator can be that person who will pre-empt these scenarios and have a solution in hand should you encounter them. This may not alleviate the problems, but definitely reduce the risk of failure to a great extent.

Any business is started with a leap of faith, with hope to succeed. There is no smooth sailing as an entrepreneur, so it’s safe to say that you WILL run into problems, probably every single day. What sets you apart and leads you to success is how you tackle these situations to learn from it and come out stronger. Working with a business accelerator gives you that edge over others, helping you navigate through work and problems in a skillful manner. When you weigh it out, the advantages of working with a business accelerator far outweighs any cons you can think of.

At Evolve Business Advisory, we work with start-ups and entrepreneurs to give them the horsepower their business needs and help accelerate businesses into various new markets. We work with businesses as an extension of their team and provide all business support services that they require to operate seamlessly, allowing the business owner to focus on growth and development. If you are a start-up that could use some help, give us a shout at info@evolvebusinessadvisory.com or +1 (905) 257-9696 and let’s chat.