Everything is going great. Your product is validated and ready for the market. Your team is assembled and motivated. Everything is in order. But now what? How do you scale your business into one that is profitable?
Scalability is a term that all entrepreneurs must become familiar with because it is what attracts investors and promotes business growth. Unless you are familiar with this term, then there is little chance that your business becomes the next Apple.
Most SMBs struggle to scale their startup and succeed in the market. Thankfully, in this article, we will go over what a scalable startup is, provide examples of scalable startups, and look at how to build one.
Related: How to Scale a Home-Based Business Successfully
What is a scalable startup?
A scalable startup is a business venture with an innovative idea with the potential for growth and expansion. Scalability allows businesses to grow and withstand pressure as demand increases, without being harmed by internal components or lack of resources.
Key characteristics of a scalable startup include:
- Meeting market demand – Scalable startups cater to a large and growing market. They can meet the needs of this customer base.
- Flexible infrastructure – The business venture is able to operate and meet increased demand without compromising or experiencing failures in its infrastructure, such as overhauls.
- Coherent business plan – Business plans are a necessity before starting a business, as they guide a startup to evergreen growth. Additionally, it encourages collaboration, primarily from investors.
- Repeatable model – Scalable startups typically have a model that is repeatable and predictable, allowing for consistent and reliable growth.
- Clear vision/goals – The business venture maintains a steady vision throughout the process, and has established clear goals.
- High customer retention rate – Scalable startups are able to retain customers over time. This creates a sustainable customer base that encourages growth and keeps a business afloat.
Examples of scalable startups
Many businesses adopted a scalable startup model and have found success in the market. Many of them are technology-based and seek rapid expansion. Here are some examples:
- TikTok – TikTok specializes in acquiring and retaining customers. It has prospered and kept up with its increasing demand.
- Amazon – Amazon’s scalability is shown in its ability to handle a vast array of products and serve customers around the world.
- Facebook – Facebook is able to connect people globally, and can effortlessly accommodate people around the world. Additionally, its technology infrastructure handles the massive amount of data generated by users and adapts to new challenges.
- Uber – Uber’s scalability is highlighted by its ability to expand to over 10,000 cities and transform the transportation industry.
- Tesla – Tesla has adopted an eco-friendly business model that conforms to changing ideologies. Additionally, it has expanded into other industries, including both the automative and energy sectors.
How to build a scalable startup
Building a scalable startup involves innovation, careful planning, and a determined entrepreneur. Here are some tips for building a scalable startup.
First, you need to research both your idea and the market revolving around it. Conduct thorough research to identify your target audience, and understand what the industry demands.
Next, you need to prove that your product works. This involves product iteration or potentially releasing a minimum viable product. This can show you how the market reacts to your product, as well as attract investors to fund your business’s growth.
Scalable startups should invest in a team. This team should foster innovation and be comprised of both talent and culture. Additionally, they should share a similar vision that holds similar values. Moreover, entrepreneurs who start a business venture should focus on networking and building strategic partnerships that can propel a business to success.
These are the fundamentals of a successful scalable startup. Of course, other logistics need to be addressed, but with these accomplished, you are set up for success.
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