Scalable Advantage is very critical; your startup must quantify it to understand its scalability capacity.
Any startup needs to model its scalable advantage (SA) to ascertain its capacity to scale and win in the marketplace. There are many factors which determine a company’s scalable advantage. Some are external like regulation, industry of operation and size of the market. Others are internal and they include marginal cost, supply pipeline, among others. In this video, I explain how to model that advantage by looking at the core transaction frictions between selling and buying. The more the business eliminates the friction, the more scalable it becomes.
You must know and understand your SA to make progress on your execution and reach that next frontier.
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