It’s honestly so fantastic how much easier it is (granted, it’s still difficult) to create your very own startup from the ground up.
But with that said, there are still some barriers, one of them being getting some employees. You can’t do everything yourself, and while sure, some will go with freelancers or VAs for the time being, long-term success actually needs more permanent positions, like employees. But the big question is how many you need.
Now, you don’t overwork yourself, and you don’t overwork them; one of the biggest reasons why startups fail so quickly isn’t only about allocated funding, but it’s also burnout and making everyone overwork a questionable amount of hours that’s not healthy. So, where’s this balance so no one overworks? But how many are too many? Well, here’s what you need to know!
The Goldilocks Principle: Not Too Many, Not Too Few
Yes, you read that heading. Everyone has to be familiar with Goldilocks, and she’s all about balance. So, your magic number of employees depends on the industry, the complexity of your product or service, and your business goals. For a tech startup, you might need a few developers, a designer, and a marketer to get started.
But too few employees can leave you overworked and miss out on opportunities. Too many can drown you in payroll expenses and office politics. Now, no one can tell you the exact number of employees you need because it will vary from startup to startup.
Don’t Forget the Legal Stuff
You have to take care of this right before you hire anyone before you list a job posting or try to network. Ideally, right when you register your business, you should try to take care of all legal things at the same time.
So, you’ll have to look into applying for an EIN online as soon as you can because you basically can’t hire anyone without this (unless you’re paying under the table, which is a horrible idea). Overall, you want to make sure you’re compliant, and the legal stuff doesn’t need to take much of your time, either.
The Power of the Lean Team
There’s something magical about a lean team in the early days of a startup. With fewer people, communication is easier, decisions are quicker, and you can pivot on a dime. Everyone wears multiple hats, and there’s a sense of camaraderie and shared purpose. Plus, having a smaller team helps you keep costs down, which is crucial when you’re just starting out and every dollar counts.
However, there’s a fine line between lean and skeletal. You don’t want to stretch your team too thin, where burnout becomes a real risk. So, you’re going to have to make sure you have enough people to cover the essential functions of your business without running everyone ragged.
When Can You Scale Up?
As your startup grows, so will your need for more employees. This is where things get exciting—and a bit tricky. You’ll know it’s time to hire when you and your team can’t keep up with the workload, quality starts to slip, or you’re missing out on growth opportunities because you simply don’t have enough hands on deck.
When you decide to scale up, do it thoughtfully. But yes, that can be way easier said than done; you’ll have to use your intuition. If you notice everyone has more work piled on them, then that alone is a clear sign.
