What Are Startup Growing Pains?

The Startup Help Desk

In this episode we answer questions about the problems that come from scaling your startup, and how to fix them! We answer questions including:

• How does the Founder role as a company grows?
• What do I need to change as my team goes from 5 to 25 people?
• What do I do if my co-founder isn’t growing with the company?

All of these questions were submitted by listeners just like you. You can submit questions for us to answer on our website https://www.thestartuphelpdesk.com/ or on Twitter @thestartuphd - we'd love to hear from you!
Episode Notes
Reminder: this is not legal advice or investment advice.
Q1: How does the Founder role as a company grows?
We discussed three common stages for a founder as the company grows:

Stage 1: Building. Find the right problem, do customer discovery, and start solving the problem for your first customers. Build, test, repeat!

Stage 2: Fundraising and Marketing. Once you have proof that your startup is solving a problem worth solving, it’s time to add fuel to the fire. Your primary focus is growth via accelerating your sales and marketing and/or fundraising.

Stage 3: Recruiting and HR. When your company reaches a large enough scale, the best way to scale your efforts as a founder is to hire more great people.

Your role as a founder at all stages is to set the vision, remind people of the vision, decide on how to prioritize the pursuit of that vision, and motivate people to keep going.
Q2: What do I need to change as my team goes from 5 to 25 people?
Move from leading by example to leading through instruction. “Leading by example” only scales so far. To scale your leadership principles:

• Write things down!
• Communicate early and often with the team.
• Make sure you’re doing 1:1s with your core team.
• Set expectations!

In addition to changing your leadership style, your startup will face new responsibilities, such as:

1. Regulatory and financial compliance.
2. The developer team may need to prioritize building internal tools.
3. Month-over-month revenue growth becomes a major priority.

Q3: What do I do if my co-founder isn’t growing with the company?
It happens at almost all companies. An effective partnership requires frequent talks, including those about productivity and performance. Being a “founder” is a unique role, but the title doesn’t make someone magically qualified.

Start with investigating the problem. Have an open discussion about your co-founder’s role and the company’s future.

You may find that more frequent open discussions with your co-founder lead to better alignment and a better environment to support their growth.

You may find there is a role that better fits their skills.

Alternatively, you may find that they are no longer bought into the vision.

If they are being toxic or creating conflict, it’s time to part ways and transition them out of the company. This is complex, so of course discuss this with your lawyers and investors.

Understanding the main obstacle to your co-founder’s growth will help you triage and either unlock their growth potential or recognize that it is no longer a fit so that you can adjust accordingly.