Billion dollars company is made by scaling but it does not mean that company is highly profitable. Profit is simple calculation.
In early startups, they don’t need to expand. You need to “validate” your ideas and see if customer buy anything from you. You must be LOCAL to prove that you are valuable business.
Localized business are HIGHLY profitable
They do not spend money scaling it to other location.Scaling always eats up your profit. More you scale, more is the operation cost.
Most of the funded companies SCALE fast just because they raise funds for expansion, scaling it and projected profit is different than expected… its NEGATIVE in the beginning 😉
I am talking about EARLY startups not for highly funded ones.