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February 22, 2024

When Do You Start Scaling Your Team?

When Do You Start Scaling Your Team?

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.

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Ash Rust

Ash Rust

Managing Partner, Sterling Road
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