Scalable Startup Entrepreneurship

Explanation Of Scalable Startup Entrepreneurship

1. Scalable Startup Entrepreneurship Presentation Submitted By:- Tushar Devaji Khodankar (BE18S02F010)

2. What is Scalable Startup Entrepreneurship? Scalable startup entrepreneurship can be defined as a business model where an organization is started on the basis of a unique idea. It involved everything that ranges from creating a plan to all the way up launching the business. This form of  Entrepreneurship  involved a great sort of work, education, and experience. This type of entrepreneurship commences with a vision that they can make some changes in the world. Their investment comes from the venture capitalist as well as by employing efficient employees. Their goal is to find out the repeatable and scalable business model. Once they find that model, they further started raising funds from venture capitalists for the growth of the business. A small proportion of all trades are made up of scalable startups because of the risk capital and outsize return.

3. T hings that are required for the growth of the business Amount of Capital : Capital is king in the field of business. Every business model requires funding for marketing or building infrastructure for the smooth running of the business. For instance, building retail stores, a power plant or designing of the website. Human Resource : Two kinds of people are required to develop the business efficiently. For day to day tasks, common people with no higher education can be preferred to do tasks such as packaging, delivery men, and drivers and so on. However, experts are required for complex tasks with specific education, knowledge and experience. To exemplify, surgery, operations, etc.

4. Some valuable tactics for establishing a Scalable Startup Establishing a scalable startup : When the investors look at the startup, then the scalability is the first thing in their mind. They considered the entire scenario such as products of the business, their employees and plans for the successful running as well as smooth operating of the business. The entrepreneur must have a particular plan for the scaling of the business and maintain stability in the profitability for the long run can break the interest of the investor in the company. Create a strong business plan : The business plans are not only for the investors but it also belongs to you and figures out the goals and objectives of the company too. Moreover, you need to know how to achieve the goals. If you want to grab the attention of potential investors, then you have to pitch as a scalable startup and the great way to achieve is building a business plan. You must set up a solid foundation and prepared to warm up whenever it is needed.

5. Invest in human resource: Fail to scale cannot always occur by a wrong entrepreneur but it is also related to the people who employed. Each employee of the company has a clear vision for the plan and a vision for tomorrow also. The human resources you hire for the startup’s journey has an impact on the durability of the business. Get the accurate and innovative tech: A huge difference can be made by adopting the right technology at your fingertips when you are thinking to make a transition from the startup to the scale-up. With the help of good tech stack, you can easily engage with the customers, handle vital metrics as well as document your procedures to make scaling faster. 

6. Examples of Scalable Startup Entrepreneurship Amazon, scaled from book market to general market, then to physical stores; Facebook, scaled from Harvard to general public. Tencent of China, scaled from instant messaging products to gaming. Nvidia, the graphic card processing chip maker, scaled with the Moore’s law. McDonalds, through copying to different locations. TSMC, Taiwan Semiconductor Manufacturing, will keep reducing its line width. Twitter Instagram Any Online store like amazon, flipkart Any coffee shop can be scalable like CCD Any Lawn Business. Household items business

7. Advantages of Scalable Startup Entrepreneurship Choice Liberty : There is a great sort of freedom offered by this entrepreneurship type to individuals. Creativity is one of the main things that play a solid role in beginning and operation of the business. Almost every component of the organization is controlled by entrepreneur that includes location and nature of the operation. Low Investment: A small scale business can begin with limited capital without too much money. The entrepreneurs who have little low money usually go with this idea. Flexibility: Every company has its set of requirements and demands for the operation of business successfully. The same is the case with a startup as there are chances that it may not get fulfilled even by an established provider. The level of flexibility in startups is pretty strong that it gives you the liberty to set according to needs. Questioning Freedom: There will be a great level of liberty provided to entrepreneurs for asking questions that they may not get while working for others. It helps in finding incorrect steps in the system quite easily.

8. Disadvantages of Scalable Startup Entrepreneurship Risks: A great number of startups get failed only in the first year of its operations. It means the chances of failure are pretty high in startups that the entrepreneurs need to keep in mind. Commitment: There is a great sort of commitment asked by startups that ask tons of effort from entrepreneurs. You have to create a solid customer base, credit lines, and many more. The entrepreneur who is looking to succeed in this entrepreneurship type needs to keep it in mind. Excessive Responsibility: When compared with operating an establishment, the level of responsibilities is quite high in a startup. There is an involvement of many things that range from marketing, business license, and many more.

9. Pillars of Scalable Startup Entrepreneurship Startup Incubation: The  incubation  is an essential phase. There are way too many incredible ideas in the market, ready to compete and shine. But these ideas, despite their inherent brilliance, fail because of inadequate evaluation. Please note it is not necessary to have a unique idea. You are set to attract investment to scale your dream as long as your business fulfils a need in the market. Team Building: In the 21st century, when you set out to build your empire, people relationship is a significant success factor. Millennials do not work for bosses; they work for businesses. If you come across as an arrogant and exacting person, you’ll lose the opportunity to work with the best people. Without them, you can never build a great team that can materialize your business idea. You must understand the psychology with which young people operate, give them responsibilities that commensurate their talent and freedom that gives them the power to face the future head-on. As a technology firm, your hiring influences your business success.

10. Pursuit Of Perfection: Of course, a sincere entrepreneur would always be obsessive about the quality of their product. That is the way to go about striving for excellence in cutting out a differentiation. But here’s a challenge; many entrepreneurs with the potential to do great business get stuck at the product perfection phase before entering the market. For example, you may be determined to launch an AI-based app development company. The idea is distinct enough as per your incubation evaluation. Agility to Adapt: The premise we built above, further branches out to the critical aspect of agility to adapt. One thing is not to overspend on perfecting your product before entering the market. The other is to be ready to amend your original product vision, depending on the market response. You are set on an epic journey if you notice the market steadily warming up to the new solution your product/service offers. Stay put and keep improving. But if the response is cold, you know due market diligence can help you figure the priority quadrant of your product/service.

11. To be a Scalable Business, a Startup needs to have these characteristics Low Customer Acquisition cost (CAC) : A highly scalable business achieves a good product Market fit before scaling. Good Product market fit drives a strong word of mouth growth. This organic growth helps a startup reduce the customer acquisition cost. In other words, unless you are creating a new market, scalable businesses does not need massive spending on marketing and sales. Modest upfront investment with fewer incremental costs : Software & Technology is something that can be replicated and simultaneously used by multiple people. Thousand and Millions of people can use the same software at very low incremental cost to the company. The founder typically invests initial money hiring engineers and setting up the scalable infrastructure. The company has unprecedented profit margins but typically reinvests a lot back into R&D and continuous product development. Huge TAM: It is impossible to scale a business if the market is too small. If the Total Addressable Market (TAM) is huge, business needs a small slice of that market to be a huge success. Scalable businesses typically go after large TAM and are backed by VC’s.

12. Economy of Scale applies to the Product Development : Economies of scale exist when there are reductions in the average cost per unit associated with increasing the scale of production for a product or service. Needs few people to operate: A Company has a technical stream and a management stream. Building the right technical architecture, automating things, and having the right management systems in place helps reduce the headcount required to build and maintain the product. If and when the company starts taking off, the technical and management debt does not stop you from growing the company at the speed that you want. High gross margins and Profits: A strong scalable business will have the power to raise prices without losing business. Controlling the pricing enables the business to improve gross margins and profits. They have developed a sustainable competitive advantage to maintain the desired quarter on quarter growth. Less Regulatory and Legal barriers : Businesses that require approval after approval to grow revenue and profit and are not very scalable. Highly regulated businesses are harder to scale. Businesses with a lot of regulation impacting what they do are hard and expensive businesses to enter. On the flip side, it also creates barriers to entry for potential competitors.

13. Product Distribution is simple and inexpensive: The cost of delivering the application/product is tiny. People receive the product on devices that they already paid for. Now, more than ever, we have the ability to create software on inexpensive machines, using techniques they can learn on line, by accessing a third party data center in the cloud and delivering the service over the global network of networks. Low cost of maintenance and support : Many modern software applications can be supported in an automated way, which can make the cost of goods sold remarkably low and gross margins incredibly attractive. High Customer retention (low churn) : What makes a business scalable is a service that is sticky and as a result does not suffer too much from churn. Every business has some customer churn, but some have less than others. The best businesses understand the value of customer retention and as a result have effective ways to keep the impact of churn manageable. 1% of a 100 million business is $ 1 million every year.

14. Platform model: Scalable business usually stay away from owning or warehousing any inventory. They are generally Network Orchestrators who facilitate transactions and interactions within a network. Strong Network effects : A scalable business should be scalable on both Supply-side and demand side. Supply-side scalability concerns the ability of a business to use capital, labor and resources more efficiently as the business grows. Scalability on the demand side, which is where network effects happen, is created by structuring how customers interact with the product and with other users of the product.

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