Black Girl Ventures Founder Shelly Bell Explains How Small Businesses Can Qualify For Venture Capital

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Portrait of a happy business owner standing in a clothing store

Source: FG Trade / Getty

To qualify for venture capital, the business must be scalable and profitable

“To be scalable, it is where the overhead doesn’t have to grow in order for the business revenue to grow. That’s why technology is heavily invested in,” Bell advised. “Let’s take Uber, for example. After the app is built, you can dump as many people into the app and using the app, bringing in revenue without having to consistently add extra overhead in order to make it work. A beauty salon, for example, may not be viewed as scalable because you can only make but so much money per chair, per person that works in that chair, according to the size of the space, so there’s a limit. When the level for the size of the growth of the business is unlimited and where the overhead can be lower than the revenue it brings in, it can be viewed as scalable.”

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