Starting a company is difficult, but once you’ve got the basics down and are ready to go into growth mode hiring can be tough. How do you know if your team needs to grow before going out in search of funding? The answer may have less to do with how many people on staff, but more about their skillset.
The “startup team structure” is a guide that helps startup founders transition from being the only person in charge of their company to having a growing team.
Canny, a SaaS platform that helps companies gather and manage consumer feedback and develop their product roadmap, was built from the ground up by my co-founder Andrew and myself.
We haven’t accepted any outside financing since Canny is entirely self-funded. We’re profitable, and early this year we surpassed $800,000 in annual recurring revenue. We’ve grown to a staff of seven people (and growing).
Canny, on the other hand, was formerly a scrappy two-man squad.
Here’s how we got started and what we’ve learnt as a bootstrapped business.
How we got our start as business owners
Andrew and I met when I was working at Facebook as an intern. During that time, we started working together on a product called Product Pains (which would later become Canny).
It began as a thesis project: a platform for consumers to provide feedback on various goods. As users, we often felt that businesses were uninterested in what we had to say. We felt there has to be a way out of this situation.
Andrew worked on Product Pains as a side project while I completed school. We eventually left our day jobs to develop and launch Product Pains, which would later become Canny.
What we’ve learnt as we’ve scaled Canny and expanded our staff
Starting a company is difficult enough. However, after you’ve gotten beyond the early stages, developing a company presents a whole other set of difficulties.
Because we’re a SaaS firm, your position may vary based on the kind of business you operate. If you’re a first-time entrepreneur, here’s how to successfully scale your staff.
1. Pay special attention to matching skill sets and cooperation.
It is critical to have compatibility in your team. It’s critical to ensure that you and your founding team work effectively together from the start.
Andrew and I had previously collaborated on a number of smaller projects before starting Canny. We even competed in a hackathon and won $45,000 at one point. It was obvious that we worked well together.
When it comes to actually establishing a company, this was critical. We were confident in our abilities as a group.
We also understood that by working together as an engineer and designer, we could develop a software product without having to hire anybody for a long. We were able to construct Canny without needing to hire more personnel as a result of this.
Our skill sets were complimentary, which gave us a significant edge. If you and your co-founder(s) have complementary skill sets rather than overlapping abilities, it will be much simpler to get started with a small staff.
Takeaways:
- Choose co-founders with whom you have a good working relationship. It’s great if you can practice working together beforehand.
- It will be simpler to develop your company in the beginning, before you have a crew, if your talents compliment each other.
2. Make a big impact with a little budget
In the early stages of a business, it’s rare to be able to afford a big staff. It’s critical to concentrate on long-term development while keeping expenses low at first.
To begin, we concentrated on developing the product. Plus, we couldn’t afford to employ, so it was a no-brainer in some respects.
We also knew we didn’t want to take money from venture capitalists. Many companies raise money immediately quickly to expand their staff. You give up ownership in return. We were certain we didn’t want to go down that path. We didn’t want to create a successful, long-term business for ourselves and our clients, therefore we rejected the “growth at any costs” mentality.
The restriction of not being able to pay anybody turned out to be a benefit. We had to wait for a while. And we understood that when we could afford to employ people, it meant the company was doing well.
Takeaways:
- It’s possible that you won’t be able to employ straight away. This isn’t always a negative thing. When you don’t have to worry about paying a team as well as yourself, it’s simpler to go all-in.
- Start small and scruffy, particularly if you’re bootstrapping. There’s probably a lot you can accomplish before you have to hire someone. Concentrate on your assets.
- If you can’t afford to employ after a few months of operation, it’s time to rethink your options. It’s possible that your business concept isn’t as lucrative as you anticipated.
3. Assemble a team, beginning with the high-impact areas.
Going from founders-only to a team is a huge move, and you can’t be hesitant about who you hire. When you’re a tiny team at a fledgling company, you have to be choosy.
The first step in thinking about increasing our staff was determining which areas would have the most effect. We pondered the following questions:
- What role will be the most beneficial to our development?
- Which chores use the most of our time?
- What kind of job do we struggle with or despise doing?
We like providing client service and conversing with them. However, due to the irregular nature of the requests, managing it all ourselves was very distracting. As a result, we concentrated our initial hiring on finding a customer success specialist.
Andrew and I aren’t salespeople. We realized we needed to concentrate on marketing in order for Canny to expand. As a result, we engaged a marketing firm.
However, we aren’t sales gurus either. But, because we could (for the time being) manage demonstrations ourselves and were still in the process of developing our sales funnel, we thought that a sales employee could come later. We intended to concentrate on the positions that would have the most immediate effect.
We understood it would be critical to tread cautiously when it came to recruiting. Because we’re all working remotely, it’s critical that we get along and communicate well. We’ve spoken about this a lot on the Canny blog since it’s important to us that we choose individuals who will fit in well with the team.
Takeaways:
- Your initial non-founder team members should take on positions with a significant effect. Which jobs would have the most effect on your capacity to continue to develop?
- What do you struggle with the most? What is it about your job that you despise? Consider these areas for new employees as well.
- Selectively. All applicants should be carefully vetted, both in terms of their abilities and how they’ll function as part of the team. Don’t be scared to try out new things using test projects and trial periods.
4. Have faith in the people to whom you entrust your “infant.”
One of the advantages of having a founder-only company is that you have complete control over everything.
However, this poses a significant problem. Everything is yours. You wear a lot of hats, which may be exhausting. Furthermore, you are most likely not an expert in anything you do.
Giving up control, on the other hand, may be frightening. You’ve worked hard to build a business, and you don’t want to hand it over to just anybody.
Hire specialists in addition to hiring wisely. More “junior” team members aren’t typically a good fit for early hires.
It’s best if your new team members take ownership of their responsibilities. Look for individuals who can seize control of their domain and run with it. Assist them in setting objectives and ensuring that they are held responsible for achieving them.
The less supervision you have to keep, the better. It will save you time and energy, and you will have peace of mind knowing that your “baby” is in excellent hands.
Takeaways:
- Hire professionals who can take charge of their responsibilities. It will feel wonderful to give up the reins if you have faith in their abilities and decision-making.
- It’s not simply about having the right skill set. Ascertain that your new team members are capable of taking control of their respective areas.
- Micromanaging isn’t a good idea. Set objectives instead, and hold individuals responsible for achieving them.
5. Take up the job of “manager” with gusto.
One of the most difficult aspects of building a team? Getting a job as a manager.
It may be disorienting to suddenly be in charge of a team if you’ve been focused on creating a product. You may not have previously held a position of leadership in this capacity. It was a totally new experience for me.
It’s an often-overlooked element of starting a business. You’re not just in charge of developing your company; you’re also in charge of managing a team and assisting your workers in their development.
It’s a huge deal to join an early-stage company. People that you employ have a lot of confidence in you and your concept.
Weekly check-ins have been the most essential thing we’ve done (AKA 1:1s). These gatherings aren’t for reporting on all the projects they’ve been working on. They’re an opportunity to discuss any obstacles, what’s working and what isn’t, how they’re feeling at work, and so on.
As a new manager, my aim is to ensure that my staff feels supported rather than smothered.
Takeaways:
- Prepare yourself for a painful shift from “doer of all things” to “manager.” That’s OK. It’s critical to plan management time into your weekly routine.
- Hold frequent 1:1 meetings with your staff and ask how you can further assist them.
You can’t do everything in order to develop.
To scale, you’ll need to assemble a team. You can’t possibly accomplish everything. While it may seem intimidating, keeping the following in mind can help you form a successful team:
- Slowly and cautiously hire.
- Maintain a very open line of communication. Tell your new team members what is and isn’t working. Allow them to tell you what works and what doesn’t.
- So you don’t have to micromanage your employees, hire individuals you can trust. Hire specialists in their areas who can take over with little supervision.
- Accept that you will make errors. They aren’t irreversible, and they aren’t the end of the world.
Growing pains are unavoidable, but they may be beneficial. We’ve been extremely aware of the fact that we’ll have to relinquish possession. It’s a good thing, too. The founders of a business cannot carry the whole enterprise on their shoulders.
In the end, you’ll have even more individuals eager to assist you develop what you’re working on. They’ll be better than you in their fields, which is exactly what you need to keep growing. One of the most gratifying aspects of our journey has been the development of our team.
The “start up team” is a group of people who are involved in the startup process. They help with the business plan, marketing strategy and more.
Frequently Asked Questions
How do you grow your team in a startup?
A: It is difficult to know exactly how you would go about growing your team in a startup. Generally, its good practice for an entrepreneur to create opportunities by creating new services or products that will capture the interest of potential investors and employees.
How do you structure a growing team?
A: It is a common practice for teams to form into smaller sub-teams. This would allow each team member more freedom to pursue their individual strengths, and helps them avoid the bottleneck of decision making that often occurs when too many people are together in one room.
Do startup founders get rich?
A: Most startups founders are very smart and, as a result, they get rich quickly.
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