The Pros and Cons of Startup Accelerators

If you have a solid business idea but don’t have a way to fund it, you may think that you’re out of luck. Luckily for you though, you have another option, and it’s called startup accelerator.
A startup accelerator is a program designed to help startup companies get off the ground. Generally, most accelerator programs will provide you with startup capital in order to get your company launched. While it may sound too good to be true, startup accelerators can be a great asset to your company if you know how to do them correctly, but they also come with a few downsides. If you’re toying with the idea of using a startup accelerator program for your business, check out the pros and cons first.

Pro: You receive a great deal of advice.

Most accelerator programs will give you access to a multitude of mentors that can help you learn more about how to run a business and how to get your business to succeed. To a newbie business person, this information can be the best perk associated with an accelerator program. Most programs have mentors from different categories, such as successful business owners, successful financial advisors, successful marketing gurus and more so that you can learn valuable information for every aspect of your business.

Con: It may be repetitive.

Some companies go through accelerator programs more than once, especially if they have multiple ideas. The problem with this is that accelerator programs generally require you to go through some type of workshop or training, and if you’re going through a program for a second or third time, the information you receive will be the same information you previously received, making the entire experience repetitive.

Pro: It’s a great way to network.

Accelerator programs give you the opportunity to not only meet with mentors, but it also allows you to meet with other business owners in the program. This is a great way to meet some new people and start to network your business. You may just find that you’re in a program with a person you can partner with, giving your companies a better chance at success.

Con: It’s a commitment.

In order to be a part of an accelerator program, you need to give the company equity into your business. This means that you’re making a huge financial commitment, and there’s no guarantee that the program will even help you be successful. You need to make sure that this is something that you truly want to do and something that your business can afford.

Pro: You can launch your company.

Using an accelerator program not only gives you the knowledge you need to run a successful business, but it also gives you the startup capital you need to make it happen. If you have tried to get money on your own and have been unsuccessful, then an accelerator program may be the blessing in disguise you need.

Con: It’s competitive.

Most accelerator programs are very competitive to get into, so if it’s something you want to do, you may be put on a waiting list for a few years before actually being accepted into a program. If you don’t want to wait to start your business, then you may not want to invest in an accelerator program.

Author Bio:
Caleb Grant is a small business owner and reputation management expert.  He enjoys blogging about anything related to business and entrepreneurship and recently gave advice about investment for startups.