Those who believe that start-ups are destined for rapid growth, acknowledge that scalability is the key. Therein lies the difference between a start-up and a business. A start-up is essentially an idea that can quickly be turned into a profitable company. Small businesses which simply do not have a vision or a growth plan to scale can never be termed as start-ups for the same reason. These businesses, although self-sustaining and at times huge in nature, are small in terms of design and therefore deemed non investable. Most investors put their money into ideas and businesses which can be scaled and most start-ups strive for a scalable and high growth business model.
A startup’s potential to scale, or to achieve growth and make profit depends on various factors; Importance of market research into a business idea can’t be overstated. Enablers – an expert facilitator for start-ups, encourages all the potential start-up founders to conduct extensive market research since the investors that Enablers works with, prefer ideas that are backed by solid research. It is music to the investor’s ears if the research predicts a growth rate which in turn makes the idea scalable.
Personal goals and objectives of an entrepreneur largely define the business plan of a start-up. A viable business plan to generate revenues without incurring huge sums of money generally catches the attention of investors. Experts have mentioned time and again that business plans and prototypes need to be iterated multiple times until they make complete business sense. Confidence in one’s own product or service does wonders to infuse confidence in an investor.
The growth strategies implemented by a start-up to achieve its primary objective are dependent upon the team of people implementing those strategies. A team of right people to execute ideas is crucial to any start-up.
Another factor where scalability facilitates the strategy is marketing of the product or service that a start-up aims to launch in the market. A strong marketing plan alone is not enough for a start-up to skyrocket. We suggest a strong and scalable marketing plan to make the venture visible. Scalability of a marketing plan enables a start-up to adapt according to the market conditions while in expansion mode.
Since scalable start-ups device everything around growth, scalable start-ups are often considered sustainable. There ought to be an incentive or motivation for a customer to return to a particular product or service, in order for a start-up to monetize it. That itself is the primary reason for an innovative idea, a unique product or a distinct service to be the forte of a start-up. Only the start-ups that can find ways to continue earning revenues and follow a path of growth are able to survive in the long run.
Founders of start-ups that are considered scalable would testify that a lot of planning and brainstorming goes into the process of adopting scalability. It’s not just catering to different markets and geographies, but setting out plans for immediate and near future, along with plans for the long run. Many experts believe that the process of adopting scalability is an ongoing one. Key adjustments in the business plan help maintain the scalability of a start-up.
With an ever-emerging class of investors ready with their stash of money, looking for start-ups that seem investable, potential founders must ensure that their start-ups are scalable. It doesn’t come as a surprise that Enablers list one of their objectives as Enabling entrepreneurs and companies to scale up their businesses by securing funding.