Scalability
Understanding Scalability in Startups
Scalability refers to the ability of a business to grow and handle increased demand efficiently. A scalable startup can expand its operations, user base, or revenue without a proportional increase in costs or resources. Scalability is a key factor for investors evaluating a startup’s growth potential.
Factors that Affect Scalability
- Technology: Robust infrastructure can support increased users or transactions.
- Business Model: Subscription-based or SaaS models are more scalable than services requiring manual intervention.
- Processes: Automated and efficient processes help manage growth without significantly increasing overhead.