If you’re an aspiring entrepreneur, it may be recommended that you consider applying to a startup accelerator or a business incubator. While these two ventures may seem quite similar upon initial research, there are actually a few distinct differences that set them apart. Here are the key differences between a startup accelerator and a business incubator that you should know so you can decide which is right for growing your business.
THE FACTS ABOUT STARTUP ACCELERATORS
As its name suggests, a startup accelerator is used to ramp up a business at an existing startup or company that has already laid its foundation in some capacity. Rather than working on building something from scratch, a startup accelerator takes what already exists and scales it up, typically with the goal of doing so as quickly as possible.
Therefore, if you have an already-established business and are seeking seed investments, a startup accelerator is probably right for you.
THE FACTS ABOUT BUSINESS INCUBATORS
While a startup accelerator is perfect for existing businesses, a business incubator is ideal for businesses at the very beginning of their journey, well before a product idea or official business plan is even developed. In fact, many business incubators will provide resources to help entrepreneurs during the ideation phase of the creative process.
The timeline of being involved with a business incubator is much slower than that of a startup accelerator. A business incubator allows you time to develop your product and business model rather than trying to accelerate your startup as quickly as possible.
Another key difference is that business incubators typically do not provide new startups with seed investments. Instead, you can expect to be asked for equity stake in your company in exchange for a business incubator’s helpful resources.
While there are pros and cons to every venture, both startup accelerators and business incubators can help entrepreneurs get their businesses off the ground and running. If you are starting a business in High Point, NC, connect with Business High Point-Chamber of Commerce.
ENTREPRENEUR RESOURCES FOR POSITIVE BUSINESS GROWTH IN HIGH POINT
At Business High Point-Chamber of Commerce, we empower changemakers in our community to think big, dream big and make big things happen. Whether you’re an entrepreneur getting a new business off the ground, an executive growing a business to new heights, or an ambitious professional ready to supercharge your career, BHP-CC can help you advance to the next stage with comprehensive leadership programming, industry-specific coaching, and business growth resources needed for success. To learn more, contact us today.