Starting a business is now easier than ever despite the current economic challenges that the country and the whole world are facing. How? Many startups have embraced and implemented policies and regulations that simplify business operations. Additionally, they have adopted online tools and modern technologies to promote their brands and facilitate business activities.
However, expanding a business, even if it’s a startup, is a different story. Entrepreneurs who wish to embark on a scalable startup entrepreneurship need to have a profitable business idea, strategic growth plan, and unique value proposition. That is aside from using advanced tools and evolving technologies to expand the business.
If you aspire to build future scalable startups, you’re in the right place. In this article, we’ll discuss what a scalable startup is. Plus, we’ll share with you the characteristics that a scalable business must have, along with tips on how to successfully build a scalable startup entrepreneurship.
What is Scalable Startup Entrepreneurship?
Scalable startup entrepreneurship is a type of entrepreneurship that requires external capital and risk, wherein an organization launches their business on a small scale with the goal of expanding rapidly and becoming an extremely profitable company. To achieve this, entrepreneurs interested in establishing scalable startups must create a convincing, scalable, and repeatable business plan to gain a large investment from venture capitalists.
Characteristics of a Successful Scalable Business
If you’re planning to start your own business after graduation, it’s necessary to understand all the work involved for a successful launch. Plus, if you sufficiently prepare for the challenges you might encounter along the way, you can make your business thrive and grow in any market. That is why, before you carve a career path in this field, it’s advantageous to know the characteristics of a highly scalable business.
1. Vision to Attain Goals
The most successful companies have a clear organizational vision beyond making revenue and profits, including scalable startups. Hence, even before starting your own business, be sure to create and share your vision with the people who can help you achieve what you want for your business. Additionally, your vision must motivate employees and create opportunities for scaling.
2. Diverse and Inclusive Small Business Team
The saying “No man is an island” rings true when you’re starting your company. Why? Simply because you really cannot build a scalable startup all by yourself. You’d need a diversified team that will play a critical role in fulfilling your vision and scaling your business in no time.
3. Low Customer Acquisition Cost
When getting new customers for your startup, you don’t have to spend a large amount of money on sales and paid marketing efforts to convince them to purchase your products and services. Instead, you’d need a good product-market fit that drives word-of-mouth and other organic marketing techniques to aid in reducing customer acquisition costs.
4. Simple and Inexpensive Product Distribution
Delivering your products or services to customers is one of the effective ways to establish trust and a good relationship with them. Furthermore, having a simple, quick, and hassle-free product delivery process makes your customers happy and satisfied. That said, it’s crucial that you study all the activities involved in distribution management, from packaging, order processing, logistics, and communication to inventory management.
5. High Customer Retention Rate
The ability to retain customers over time is one of the keys toward scalability. Without them, it would be difficult for businesses to succeed in the market. Thus, think of service or product offerings that would make your customers keep coming back. Moreover, since losing your other buyers is inevitable, be sure to pay attention to your possible churn rate and your competition.
Examples of Scalable Startup Entrepreneurship
Entrepreneurs planning to pursue a scalable startup entrepreneurship dream to change the world with their business ideas. Some examples of companies that began on a small scale but are now dominating their respective industries are the social media platforms Facebook, Twitter, and Instagram; online stores Amazon and Flipkart; and fast-food chain McDonald’s. Household items and lawn businesses are also examples of scalable startups.
Tips to Establish Scalable Startup Entrepreneurship
Now that you have an idea about the characteristics of a scalable business and its examples, you might wonder: What are some tips to successfully build a scalable startup entrepreneurship? Read on.
1. Develop and enhance your entrepreneurial skills.
Soldiers must go through intensive training to persevere in battle. Likewise, you need to be familiar with the basics of entrepreneurship, including its principles and best practices. By honing your entrepreneurial skills, you’ll be one step ahead of the competition.
2. Start with a scalable business idea, plan, and model to win venture capitalists.
Since funding for this type of entrepreneurship comes from investors, it’s important to win them over with your business ideas and plans. Thus, you need to create a business model that is based on strong market research, which can potentially achieve a double-digit growth rate.
3. Hire and build a strong team.
As mentioned above, you would need a diversified team that has different backgrounds and skills to assist you run your business. Hence, capitalizing in human resources is necessary for your startup as your team will be the one who’ll help your business’ scalability and durability.
4. Use effective marketing and indirect channels to quickly raise brand awareness.
Nowadays, there are multiple startups offering the same services and products are competing in the market to promote their brands. That said, if you’re also planning to offer such, be sure to focus on using effective marketing and indirect channels to get ahead of these companies. These include taking advantage of search engine optimization and social media marketing strategies.
5. Invest in the right innovative technology.
In today’s digital age, technology is one of the primary necessities to operate a business. Without it, companies won’t be able to survive. Therefore, getting accurate and state-of-the-art technologies can help your business thrive despite heavy competition, especially when transitioning from startup to scale up.
Hone Your Entrepreneurial Skills Toward Successful Scalable Startup Entrepreneurship with CIIT Today!
Are you one of the few visionary individuals dreaming to expand your business in the future? Develop and enhance your knowledge and skills in the industry first before embarking on a rewarding career in entrepreneurship!
As mentioned, you need to equip yourself with entrepreneurial skills to stay ahead of this competitive market from an academic institution that has the foundations and science of establishing a business.
With CIIT Bachelor of Science in Entrepreneurship, you’ll be able to learn a variety of approaches and techniques to find opportunities through innovative business ideas, which are integral in establishing a scalable startup. Not only that, you can also team up with CIIT’s ecosystem of digital artists, designers, and developers that will help turn your business ideas into reality.
Be a CIITzen today and together, let’s start weaving your future as a successful scalable startup entrepreneur.