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Scale up: Dream for every start-ups
Scale up: Dream for every start-ups

May 17, 2021

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Scale-up: Dream for every start-up

Scaling up is the dream of every start-up since it not only confirms that the firm is moving in the right direction but it’s also growing for a sustainable future. The scale-up start-up also confirms the fact that investors trust the firm and the founder is capable enough to take the firm to newer heights. The entrepreneur’s credibility also has a huge impact if his start-up scales up in the right direction. As per OECD, a scale-up business is defined as a company that has seen annualized growth of at least 20% over 3 years with 10 or more employees at the start of the period. Though we cannot generalize this definition for all start-ups it can act as a bare minimum base.

Now from the Indian perspective, we can analyze the scale-up start-up in 2 ways:

  1. How a scale-up start-up can be defined
  2. Factors that led to a start-up to scale

Now there are multiple parameters through which we can measure if a start-up is now a scale-up or not. These parameters can vary based on different perspectives but each has its own importance and impact. A few of the parameters are listed below:

  1. Total Revenue
  2. Profit
  3. No. of Customers
  4. Growth Rate
  5. Funding Amount
  6. Round of Funding
  7. Market Share

There are many factors that we can add or delete from the above list. It all depends on the kind of comparative information available but more or less above points are good enough to measure a scale-up.

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Now what factors pushed a start-up to scale. These factors not only highlight the current acceptance of a solution in the market but also acts as a guide for other start-ups to follow. Some of the factors that help a start-up to scale:

  1. B2B vs. B2C
  2. Right business model
  3. Management Team Experience
  4. Current Macro Economic Factors
  5. Innovative Solution
  6. Investors

But is it easy to scale up a start-up? Of course not. Though we have a long list of start-ups in the Indian start-up ecosystem which have successfully scaled –up but the story behind each is quite strategic and insightful. It’s like every scale-up has its individual strategy story and best practices but one strategy might not be applicable or useful for the other. So, can we have a playbook or set of best practices that act as a reference for a start-up for scaling up? For that, you have to wait till July for the NASSCOM detailed report on “Scale-up”. For more information check out. NASSCOM Community.  

 

Source: Forbes, NASSCOM Analysis


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