We are prioritizing applicants who are building companies with scalable business models. Such companies have the potential to rapidly expand over a short period, maintain or improve profit margins as sales increase, and typically seek venture capital as part of their growth strategy.

A key feature of scalable models is that the cost per customer does not increase, even if customer numbers spike dramatically. Below are some examples to illustrate this concept:

Examples of scalable companies include:

• Software & Downloads: Once developed, software can be duplicated at low cost, allowing for high margins as sales increase.
• Online Content & Curriculum: Content that reaches 1,000 people can scale to reach 1 million without significant additional time investment.
• Subscription Services: This model benefits from economies of scale in production, with customers often paying a premium on a recurring basis.
• E-Commerce: Online sales platforms can rapidly expand their market reach using digital technologies.
• Line Production: Automated manufacturing processes allow for increased production without proportional increases in staffing.
• Franchising: Expansion through franchising allows companies to grow their brand and operations without substantial direct investment in new locations.

Non-scalable companies include:

• Single-Location Businesses: Businesses like individual restaurants or boutiques that do not have a model for reaching beyond their physical location.
• Service Providers: Services with resource constraints, such as individual consulting, where service delivery scales directly with the number of clients.