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Scalability

Scalability

This word has become practice and value in the modern business world. It sounds like a monster. But it makes sense, if it is used with the right content. It is not a process or something to do, it is more like a mindset.

There is a correlation with the market segmentation and it has become standard question in the corporate and the venture capital world. And it is one of the key questions during the valuation process for a startup. Starting from the business plan, the products or services are designed originally for a distinct application. New applications beside the first plan and other market segments can offer further opportunities for revenue. These niches are economies of scale and not part of the previous forecasts and projections.     

The daily business in a startup with a small team is intense und full of surprises. Lot of founders recommend cutting off for a short while and spent time for relieve and mindset at a convenient place. These breaks can open the mind for new options, alternatives and will be inspiring. The new ideas often result in economies of scales.

The scales are helpful for discussions with investors, banks and sureties. It demonstrates, that there are niches available for further growth of revenues. And the team will be relaxed, that there are reserves for the case.