Lots of fast growing startups start to struggle as they scale. The reason? Not enough people. Now we live in the World of AI, where there's a lot of romanticization of the ultra lean team making it to unicorn status with only 2 people and a small dog. For most businesses, that is not reality.
1. Incredible Growth is Possible
Yes it is absolutely possible to reach millions in revenue with a very, very small team. But nobody has IPO'd with an ultra small team, so if you're reaching for the stars you will eventually have to staff up.
2. Burnout
Ultra lean startups that are growing fast put a lot of strain on the co-founders and first employees. You will have to wear many hats and there will be lots of emergencies. Not everyone can handle it.
3. Hiring Timelines
Finding someone great takes weeks, if not months, so if you're delayed in starting the process you will be extending out an already long timeline. Delaying your growth.
Best of luck out there.
Sterling Road invests in idea stage and pre-seed B2B startups based in the US, Canada and UK.
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