This document discusses scalable startup entrepreneurship. Some key points: - Scalable startup entrepreneurship involves starting a business based on a unique idea, creating a plan, and launching the business with the goal of finding a repeatable and scalable business model. - Capital and human resources are required for business growth. Experts are needed for complex tasks while common workers can perform basic tasks. - Tactics for establishing a scalable startup include creating a strong business plan, investing in human resources, and adopting the right technology. - Examples of scalable startups include Amazon, Facebook, and companies that have scaled operations through locations or technology.

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. Things that are required for the growth of the
business
i. 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.
ii. 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.

15. Thank You !!