Arvind Pandit, Founder & Managing Partner, Ishwa Consulting , 0
In the startup world, growing from 10 to 100 isn’t just about getting bigger; it’s about changing the way a company operates. This phase is often the tipping point where a close-knit team must evolve into a more structured organization, which can be both exciting and daunting for founders. Think of it as shifting from piloting a speedboat to steering a ship. The agility that once defined the business now has to be balanced with a need for process, systems, and broader strategic thinking.
Navigating the Complexity of Scaling
As companies grow from a small team to a mid-sized organization, the complexity of managing that growth multiplies. Scaling isn’t just about adding more people; it’s about redesigning the entire way a company functions. Roles need to become clearer, processes more defined, and leadership stronger. During this time, the startup’s culture, often a company’s biggest asset, is tested to see if it can hold up under the pressure of expansion.
One of the most common hurdles is keeping key talent, especially executives. Studies show that over 75 percent of C-suite executives leave startups within two years. For founders, hiring the right leaders and creating an environment where they can stay and succeed is critical. It’s not enough to bring in the right people; they need to be given the tools and support to grow the company over the long term.
The Dual Strategy for Building Leadership Teams
Looking at data from over 150 startups that we have worked with, there are two common approaches successful founders use when it comes to assembling leadership teams:
Bringing in External Expertise: For key positions like heads of sales or marketing, founders often seek outside talent with deep industry experience. These are roles that directly affect growth, and hiring someone who has 'been there and done that' can speed up success. It’s like hiring
a professional chef to improve your restaurant’s menu—they bring new skills and ideas that can take your operation to the next level quickly.
Developing Internal Talent: For positions like HR or operations, where knowledge of the company’s culture and processes is crucial, promoting from within can often lead to better outcomes. Research from the DDI World Report shows that 65 percent of internally promoted leaders succeed, compared to 52 percent of external hires. Founders often find that people who’ve been with the company from the start have a deep understanding of its values and can help maintain the culture as the company grows.The key is finding the right mix of internal talent and external expertise to build a leadership team that can navigate the challenges of growth while staying true to the company’s original vision.
Building a Cohesive Leadership Team
Growth isn’t just about filling positions—it’s about creating a leadership team that works well together. Founders who are successful in this phase know that each hire needs to not only be qualified but also fit with the company’s mission and values. A team that isn’t aligned on goals and strategy can slow down progress, while a cohesive group can act as a force multiplier.
Founders need to prioritize regular communication and team-building activities to ensure that their leadership team is on the same page. This doesn’t just mean casual bonding but intentional efforts to align on strategy, share ideas, and collaborate. Think of it like a sports team where each player knows their role, but they need to practice together to function as a well-oiled machine.
What Comes Next
The jump from 10 to 100 isn’t just a milestone—it’s an inflection point. It’s when the foundation built in the early days is truly tested. Founders must refine their leadership approach, rethink their strategy, and sometimes rebuild parts of their organization to succeed at this level.
Ultimately, the decisions made during this period set the course for the company’s future. Founders who navigate this phase effectively don’t just grow their teams—they create resilient, adaptable organizations capable of sustaining long-term success. In the ever-changing landscape of startups, getting through this phase isn’t just about scaling up; it’s about leveling up.
Developing Internal Talent: For positions like HR or operations, where knowledge of the company’s culture and processes is crucial, promoting from within can often lead to better outcomes. Research from the DDI World Report shows that 65 percent of internally promoted leaders succeed, compared to 52 percent of external hires. Founders often find that people who’ve been with the company from the start have a deep understanding of its values and can help maintain the culture as the company grows.The key is finding the right mix of internal talent and external expertise to build a leadership team that can navigate the challenges of growth while staying true to the company’s original vision.
Building a Cohesive Leadership Team
Growth isn’t just about filling positions—it’s about creating a leadership team that works well together. Founders who are successful in this phase know that each hire needs to not only be qualified but also fit with the company’s mission and values. A team that isn’t aligned on goals and strategy can slow down progress, while a cohesive group can act as a force multiplier.
Founders must refine their leadership approach, rethink their strategy, and sometimes rebuild parts of their organization to succeed at this level
Founders need to prioritize regular communication and team-building activities to ensure that their leadership team is on the same page. This doesn’t just mean casual bonding but intentional efforts to align on strategy, share ideas, and collaborate. Think of it like a sports team where each player knows their role, but they need to practice together to function as a well-oiled machine.
What Comes Next
The jump from 10 to 100 isn’t just a milestone—it’s an inflection point. It’s when the foundation built in the early days is truly tested. Founders must refine their leadership approach, rethink their strategy, and sometimes rebuild parts of their organization to succeed at this level.
Ultimately, the decisions made during this period set the course for the company’s future. Founders who navigate this phase effectively don’t just grow their teams—they create resilient, adaptable organizations capable of sustaining long-term success. In the ever-changing landscape of startups, getting through this phase isn’t just about scaling up; it’s about leveling up.