Do you run a lean business?
Running a lean business is a surefire way to get your startup off the ground and ensure growth through each phase.
However, one of the main pitfalls we’ve seen over and over is overstaffing in the early stages of company development. Hiring people you don’t need, or are not ready for, does nothing but increase your company’s vital burn rate. You’ll often be faced with laying those same people off when you’re in a pinch. It’s currently happening around the world in a myriad of industries and although not always possible to bypass, it can quite frequently be avoided. The success of your business is not measured by an inflated team, after all, so don’t hire as though it is.
A larger team often means more red tape, internal communications, office space, policies and procedures, meetings, and ultimately more money. Progress does not always come from a large company but from the right combination of the right people. It’s best to outsource the experts needed in each field to help your company grow while being mindful of your budget. Keeping this mindset throughout each stage of growth not only saves you money; in the end, it saves you time as well. A small but highly intelligent team can accomplish much more than a large, mediocre one.
One of the greatest advantages of operating with a small, talented team is that it allows each member of the team to take complete ownership of their roles, and focus on delivering their best work. It also allows for a cohesive unit that builds amazing company culture.
With fewer positions to fill, you can take the time needed and find the most brilliant candidates who provide the best fit. And instead of hiring employees for every specific need, think of how adding consultants as partners can deliver a team of experts for the same price, if not cheaper, without the extra burden of staff administration. Disciplines like marketing, legal, accounting, development, and even sales and support are great places to start.
Let’s use marketing as a simple example. Often, we simply think “I’ll just get a great VP of Marketing.” Fantastic! The moment the VP arrives they’ll want to know where their media planner, copywriter, design team, and web developer are. If you outsource, however, you can hire one person to manage the marketing department internally, while an agency manages an entire team of experts at a fraction of the cost. Knowing that not all departments are needed at all times, let them rotate the experts in each area as needed, making the most of every dollar spent.
Whether you’re just getting your idea off the ground or rapidly growing, be mindful of your company’s headcount. Hire only those needed, and build strong partnerships with consultants to maximize your team and your budget.
