DIFFERENCE BETWEEN A BUSINESS INCUBATOR AND A START UP ACCELERATOR

Every business that is now grown went through a start up phase whether it is deliberately or accidentally.

Business incubators and accelerators are programs organised by companies and firms to help start ups to expedite profitability and success as well as scale up better than they were.

But these days many people use the two words interchangeably, what are incubators and accelerators and how do they help start ups uniquely.

Incubators focus on brand new businesses that still need to develop a product idea, business plan and business model.

Incubators focus on early phase start ups that are in the product development and business model, incubators typically ask for an equity stake in exchange for the valuable resources they are providing, they are focusing primarily on stimulating Innovation (incubating disruptive ideas)

Incubators can be seen as the soil that allows ideas to grow and sprout while business accelerators can be seen as a nursery or greenhouse for young businesses to become matured

Incubators do not have a fixed duration of time that the new business ideas can be nurtured and incubated to become viable and feasible but accelerators have a fixed duration that they intend to work with the young business.

Accelerators take on businesses that already have a solid foundation to build upon, they provide companies with valuable resources, mentorship, collaborative ecosystems, legal services to secure intellectual properties, access to industry influencers.

Accelerators focus on speeding up the growth of existing companies that already have a minimum viable product with an established product market fit.

Accelerators provide ventures with a seed investment.

But how can a company know which one to go for?

It depends on certain condition like how much capital does the company need. As a startup company the capital needed is much because they need a business plan, a business model, a team, a strategy and sometimes a viable product/service but when a business has a plan, a model and a viable product ( an early basic version of a product or service that meets the minimum necessary requirements for use but can be adapted and improved in the future) and they need an investment or equity (value returned to the company shareholder if all assets were liquidated and debts are paid off, degree of ownership after debts are cleared)

They just need to scale up their marketing or increase visibility, leverage or even increase supply or distribution then you need an accelerator.

Also the number of team you have can also determine which to go for, a little team needs to be incubated, while a larger and more competent team need an acceleration

Hope you now know the difference?

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