California entrepreneurs may find that establishing their startup can be difficult. However, there are planning options, such as incubators and accelerators, that they can pursue in order to be able to properly launch their startup. It is important that entrepreneurs know exactly what these programs are and which one is appropriate for their situation.
Incubators and accelerators are alike in that they help startups to develop and be appealing to investors. The main difference lies in which stage of their development they provide assistance.
Incubators provide assistance to entrepreneurs at the beginning of their business planning when the business is an idea and there is not yet a business model or plan. The relationship with an incubator can generally last from one to five years, or until the foundation of the startup is sufficient enough to support the launch of the business.
Accelerators provide assistance to new businesses so that they are able to be successful while remaining competitive. The focus of accelerators includes enhancing the growth of the business and addressing any issues in the startup’s operations, strategies and administration. A relationship with an accelerator typically lasts from three to six months during which counseling and mentoring will be provided from individuals who have significant experience in many industries.
Being a part of an incubator program requires applying for the program, which can be a difficult process. Incubators not only try to determine if business ideas are capable of transforming industries or withstanding the given market, but they also examine the teams that are working on the business ideas.
An attorney who provides business formation and planning services may assist entrepreneurs with navigating the legal hurdles of creating their startup. Assistance that an attorney may provide includes helping with entity formation and ensuring that a particular business is properly licensed.