Today, we’re talking about the right time to start scaling your team. Most founders are too anxious to hire a big team but the more cautious also need to seize their opportunity when the moment comes. So how do you know?
1. Revenue baseline. If you’re generating less than $250k in annualized revenue, bookings or an equivalent, team scaling should not be your focus yet.
2. Growth. 10%/month growth consistently for 3+ months is a strong indicator and adds up fast. That pace roughly equates to doubling every 6 months, which likely requires more hands on deck.
3. Pipeline. A large backlog of customers, ready to go live, will sustain your growth. If your trajectory looks set to continue, it might be time to start hiring.
Expanding your team is a big commitment and changes your role as a founder but it’s also a natural step in your company’s growth, so don’t resist for too long.
Best of luck out there.
Sterling Road invests in idea stage and pre-seed B2B startups based in the US, Canada and UK.
