Five insider tips for getting the most from a startup accelerator program
While the number of accelerator programs has exploded, the collective wisdom around how to best utilise them has not.
At last count, there are over 200 accelerator programs in Australia. Most have sprung up in the past few years and each has its own nuances and goals for founders.
But while the number of programs has exploded, the collective wisdom around how to best utilise them has not. I still see founders applying for programs for the sake of it, or with no real commercial goal in mind.
I’ve personally been through four accelerator programs now — three with Carbar and one with a prior business — and I can unequivocally say that they are worth an application.
But like any business-building tool, it’s only dependent on how founders use them. With this in mind, I wanted to offer up some guidance and observations from the several programs I’ve undertaken over the years. It’s the kind of insight you might not hear until you are already in — or have been through — an accelerator program.
Be clear in what you want to achieve
The ultimate goal of an accelerator program is to help your company stand out. But as a founder you need to be clear as to what ends.
Are you aiming to attract investment? Are you aiming to find new team members? Build your brand? The clearer you are about this goal before joining the program, the better off you will be going through it.
This will also help you rule out accelerator programs. Not all accelerators will be relevant to your business or will help you achieve your goal. One good way of understanding whether an accelerator will take you where you need to go is to look at the past cohort and see where the program has helped take their business.
Don’t get caught up in the prestige of some programs. Yes, they can help add a layer of credibility to your company, but if they aren’t helping achieve that overall goal then your time may be better spent elsewhere.
Understand the time commitment
Some accelerators are incredibly light-on in terms of commitment, only requiring semi-regular check-ins. Others expect you to operate your business from a joint office and go through regular classes and programs on business building.
You don’t want to be caught by surprise with the time commitment you’ll need to give to fulfil the requirements of a program. Be sure to check this before applying, and ask yourself: do I have the time to both this program and run my business?
If you are scaling and are still keen to do a time-intensive program, you may need to hire a manager to operate the day-to-day of your business while you participate in the accelerator. Be sure to factor this into the opportunity-cost equation of undertaking the program.
Accelerators shouldn’t be an educator
It sounds somewhat obvious, but an accelerator shouldn’t be teaching you how to run your business. There are plenty that offer this, but by taking them up on it you may be distracting yourself from other key opportunities that the program can give you.
Accelerator programs often have access to networks and talent that can help you answer more sophisticated questions about scaling your company. By bogging yourself down with the basics, you can waste the opportunity to dig into some real niche insights that will help your business.
Ideally, you should be going into the program with a clear direction for your business and the skills to execute it. The exposure and networks from the program should bolster this.
If you need to learn the basics of business or any industry specifics that will help your startup grow, there are courses that offer this. Alternatively, join an early-stage startup and get hands-on experience in growing a business. This is ultimately the best education you can get on running a startup and navigating the various challenges that get thrown your way.
Network and pay it forward to other founders
Many accelerators do a great job of cultivating a community vibe. But given the program is all about your business, it can be easy to become consumed in its growth and ignore the other companies.
This would be a mistake. In my experience, contacts are the most useful resource you will derive from an accelerator program. If you open yourself to it, you can form some tight bonds by being around other like-minded people. Where possible, you should try to pay it forward, and help and support other founders in the program.
Try to stand out
Accelerators can be a double-edged sword. While you are there to support everyone in the program and help other founders, you also want to stand out from the rest of your cohort.
In this regard, going into an accelerator program from a position of strength with your business can really help ensure that when you are delivering that final pitch to investors and industry influencers you are the company that stands out from the crowd.
Again, this isn’t about being malicious. You are running your own race. But the reality is, when you present as a cohort, the audience will inevitably judge and contrast all the startups in front of them — even if they are in completely different markets and industries.
Don’t underestimate an accelerator’s impact
For Carbar, accelerator programs helped us secure investment and build a brand in a tight-knit industry that’s resistant to disruption.
They are relevant at any stage of business building. The latest one we entered into — LaunchVic’s 30X30 program — is helping train our managers for further growth of the business. We entered into this after securing our Series B this year.
Accelerators can be transformative for your business. You just need to ensure you use them correctly.
