Hey there,
In today's newsletter, I will discuss the topic of startup growth.
But first, let me use my favorite definition of what is a "startup" (by Paul Graham):
"A startup is a company designed to grow fast. Being newly founded does not in itself make a company a startup. Nor is it necessary for a startup to work on technology, or take venture funding, or have some sort of "exit." The only essential thing is growth. Everything else we associate with startups follows from growth."
In a nutshell, startups = growth.
In today's essay, I will address one particular issue resulting from such growth - scaling the team.
When I joined Greenhouse in late 2017, I was one of the first few employees. There was plenty of work, and at times, I was not sure that we could do it all ourselves. So we decided that we need help and started to hire people. At first, we would hire a new person every second month, but as the company grew, we started adding several new hires every week.
In contrast to what most people think, adding people does not mean there is less work for the people that are already there. It means that the entire organization can do more.
In the very beginning, I was managing mainly sales and marketing. Executing a bit of everything. One day I would run paid social ad campaigns, the next, make outbound sales. As the team reached about 10, I found myself spending more and more time on coordination and less and less time doing the actual work.
People typically assume, "Oh, that person joined! Now I can finally work a little less."
That's rarely the case.
It either means that you can do the rest of your job better, or that you can take on new things.
If you join an early-stage startup, your job will change every 3 to 6 months, in my case, every six. This does not mean that my title changes, but my focus sure does.
So it's inevitable to go through a phase where you are a little uncomfortable. Handing over projects, websites, partners, customers that you built/grew from the bottom up means trusting other people to do it as good as you can.
To be successful in such an environment, you need to be able to adapt to the chaos and uncertainty of adding new people. Unfortunately, as you keep on adding more and more people, your old employees would start having doubts. Afterall the new people will take over the jobs of the old, and in many cases, the new hires would be marginally better at those jobs.
A week ago, someone might have complained of their job, then you hire a person to take it over, and suddenly your old employee wants to hang on her old job.
So the question is, how can you help your team to navigate all those dynamics?
Here you go a few things that worked for us:
1. Normalize the experience. I used to run a meeting once a week, where we discuss the challenges each department is facing as we are scaling. I would often bring external examples to the discussion to show everyone how natural our situation is.
2. Listen to the questions they raise during 1:1s and tell them how it's okay to let go of their old responsibilities.
3. Excite them about the next big thing they will be building. As the business is growing, there will be so many new massive projects. Tell your team how we expect them to the same thing, but this time 5x bigger.
Joining a startup, you are committing to solve a much harder problem than ordinary businesses do. Consequentially the company is bound to add more complexity as it grows. Yet, a few positions will give you the same opportunities for personal development as a fast-growing startup. You are forced to grow with the company, adapt, and learn new skills.
Articles worth reading:
The Power of Precision Writing – Why Brevity is Important - We talk a lot about how to pitch, negotiate and set rates. These are all important aspects of your business, but if you can’t back these up with solid writing you’re going to get nowhere. I don’t care what kind of writer you are, your success hinges on your ability to create a concise copy. You need to spend as much time on the business side of your career as improving your skills as a writer.
21 Things I Wish Someone Told Me as a Young Founder - In the course of starting two companies, I’ve received a lot of advice. Now I work at a VC firm that has backed companies like Uber, Cruise, BuzzFeed, and Thredup and I’m asked to give advice. There’s no “secret manual” to building a company. No “one easy trick.” No roadmap. No two companies are ever the same.
Three Paths in the Tech Industry: Founder, Executive, or Employee - When people ask me for tech career advice I find it helpful to lay out the three paths I’ve encountered most in my career: founder, executive, and employee. I’m leaving out investors because the best path to being an investor that I’ve seen starts with being successful (or failing) at one of these three first.
A quote worth remembering:
By James Clear, author of Atomic Habits.
"Whenever you see an overnight success, your eyes deceive you.
What you are witnessing is the hour of opportunity unleashing the potential energy of previous choices. It was not one decision, but the accumulated power of all that came before.
The fuse was lit on a loaded cannon."
A book recommendation:
Shoe Dog: A Memoir by the Creator of NIKE - I think Shoe Dog by Phil Knight is most probably the best memoir I’ve ever read by a business person. It's incredible to get into the head of the founder of Nike and understand his journey. If you are a founder, this is a must-read.
Available as an audiobook as well, check it out.
A productivity tool I use:
Every year, I am able to read 30 books even though I am running a startup, hitting the gym 7 times per week and nurturing relationships with the most important people in my life. All that thanks to audiobooks and Audible in particular, check it out here.
Onward and upward!