Define StartUp: A startup is an organization formed to search for a scalable and repeatable business model

Probably your already heard the definition of a startup: A startup is an organization formed to search for a scalable and repeatable business model.

But what does it mean? What does scalable and repeatable mean? Here’s the answer.

A scalable business model is in general a business model, that is able to grow. But this is not the whole truth. Probably each business model has the possibility to grow. But not every business model has the possibility to grow unlimited. But this is the kind of business model you have to look for. You have to look for a business or a project, which can be bigger than yourself. What does this mean? For example you could found a consulting company. You could find some customers and earn a lot of money. But when you are working on your own you could just work 24 hours a day and not more. Therefore you and your business model is limited to your 24 hours. There is no scale. Your business will never be bigger than yourself.

A repeatable business model, is a business model, which will generate cash-flow more than once. This sounds very obvious, because as it seems every business is repeatable. But this is not true. When you try to sell your organs, this is not a repeatable business model. When you sell your house: This is not a repeatable business model. But of course it is a repeatable business model to sell houses of other people. Sometimes it is a good way to find interesting business model by thinking “What is not repeatable for other persons, but repeatable for me?”.

Please share, if you like.
2 Responses to Define StartUp: A startup is an organization formed to search for a scalable and repeatable business model
  1. Marine Laugier Reply

    Great information, thank you ! But what do you really mean by “which can be bigger than yourself” ?

    • BiallaC Reply

      Hey Marine,

      thank you! With “bigger than yourself” I mean, that the startup should be able to scale. You should look for business ideas, which do not depend on you and/or your time. Your day is just 24h long, therefore your work-force is limited. To find out more, read my other blog: The Weekly Startup.

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