34 minutes | Jul 12, 2021

Adding Staff Isn't a Sign of Success, Adding Revenue Is

In today’s Startup Therapy Podcast, Wil and Ryan talk about how increasing your staff does not necessarily mean growth, but a deliberate liability. Many people just focus on increasing the number of their employees and do not think about the cost of hiring more people. Yes, you need more people to get work done faster. Yes, you need additional minds to pitch in new ideas. But what if your revenue is lower than the liabilities? Sign up for the Startups Newsletterhttps://www.startups.com/newsletterResources: Startup Therapy Podcast  https://www.startups.com/begin Join our Network of Top Founders  Send an email to therapy@startups.com  What to Listen For 00:00 Intro 00:39 Some people use staff count as a measure of success 03:40 A growing staff is only seen as a progress 07:01 Management strain continues as you add more people 10:48 There’s a diminishing return in every additional hire 14:28 Each new person that comes in is a burden in some form 16:08 Why do we associate hiring people with growth? 20:11 Putting people on payroll is easy, paying the payroll isn’t 24:33 Look at every choice as a possible liability 26:30 What can we do to keep revenue and stay efficient with staffing?  28:32 Getting additional funding to add people and accelerate things 32:13 If the Startup doesn’t work, you’ll regret adding more people
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