5 Benefits of Business Accelerators
Innovation is a key catalyst for economic growth. For an idea to be considered an innovation, it should have commercialisation potential. A business accelerator programme could be the ideal way for to see if your innovation has legs.
A good programme will test your assumptions and critique your methods with the aim of leading to a robust, defensible and credible proposition. You should also have the opportunity to learn about key concepts such as financial forecasting, minimum viable product, product roadmapping, and intellectual property legislation. Being equipped with this sort of knowledge will be invaluable in your entrepreneurship journey.
This article will consider 5 benefits of business accelerators. It's not an exhaustive list, and there are many more advantages to engaging to with programmes of this nature, but it should give you an idea of how the right programme can really accelerate your route to market. Click here to read about AberInnovation's flagship accelerator programme for the biosciences, agritech and food and drink sectors.
1. Validate Your Idea
Everyone with an ostensibly good idea thinks that their idea has heaps of potential and will fill an as-yet unfilled gap in the market, leading to untold riches and recognition. But of course, not every bright idea can be a success. In reality, most ideas for new products and services barely get off the ground.
Being selecting to take part in the right accelerator programme gives you a chance to really validate your idea and to test your hypotheses. Is there a market for your product? Do the financials stack up? Do the costs involved in the development and/or manufacture make it a viable proposition? Is it investable?
When we’ve had an idea for while, it’s only natural to become emotionally invested in it. The mentorship and expertise found on an accelerator programme will help you to make a clear-headed and dispassionate evaluation of whether your idea has legs. Furthermore, a good programme will help you make the adjustments and course-corrections that may be required - saving you from wasting months, if not years, barking up the wrong tree.
2. Comprehensive Support
Many budding entrepreneurs who end up on accelerators don’t come from business backgrounds and soon learn that launching and growing a new business can be a daunting endeavour. Accelerator programmes will address participants’ knowledge gaps (not to mention provide plenty of reassurance and emotional support!) by providing mentors, success stories and subject experts to support you and equip you with the knowledge and skills you need to get your idea off the ground.
The valuable experience and hard-won advice shared by successful founders can be lightning in a bottle for fledgling founders. Many programmes, such as BioAccelerate 2020, set aside time in their schedules to invite founders and directors in relevant fields to offer their wisdom and to share their journeys with the cohort.
3. Learn What Investors Want
Unless you’re fortunate enough to be in line to inherit the family fortune, you’re probably going to need investment at some stage to grow your company and to bring your product or service to market.
Accelerator programmes invariably end with some sort of pitch or demo day, where you’ll demonstrate the progress you’ve made over the course of the programme to a panel of industry experts and potential investors. Learning how to present to these types of audiences will be vital in securing funding at the various stages of your startup’s journey.
4. Cutting-edge Facilities
Though we are witnessing a proliferation of business accelerators at the moment, not all programmes are alike. There are of course overlaps and similarities: most programmes will teach participants about core topics such as finances, intellectual properly, branding, product development and so on. However, some programmes go further.
Sector-specific programmes, and ones that are aligned to universities or innovation parks, can often also provide access to cutting-edge facilities and equipment, not to mention the pre-eminent expertise that you would expect to find at an academic institution. For example, the BioAccelerate programme offered at AberInnovation gives startups in the biotechnology, agritech and food and drink sectors access to their brand-new £40.5m campus, which includes a state-of-the-art biorefinery and a Future Food Centre.
5. Meet Like-minded Innovators
Developing a new product or service can be lonely. By definition, there often won’t be many others – if any – doing the same thing. To keep up your morale and motivation levels, it’s important to find a welcoming and supportive group of peers who are on similar journeys.
It is therefore imperative to find the right programme that has rigorous and robust selection criteria to ensure a cohort of inspiring and ambitious entrepreneurs. There are bound to be dark days and moments of doubt as you iterate and develop your proposition over the course of an accelerator programme. A supportive group to bounce ideas off and provide feedback will help you navigate these more challenging times.
In an increasingly interdisciplinary world where problems often require a multitude of solutions, these bonds may even lead to fruitful opportunities in the future.
Conclusion
So whatever your novel idea, having read some of the benefits of business accelerators, you should give strong consideration to making an application to a suitable programme. There's a lot to bear in mind when making your decision, so be sure to do extensive research and find a programme that's right for you and your business.
