Thanks to the team, an entrepreneur reaches sky-high heights. However, people can start posing a threat to the business.
It happens when the founder rushes to expand the team while the business model isn't fine-tuned. For example, the ideal customer portrait is still fuzzy, and the sales process isn't outlined.
An energetic new employee will try to prove their worth to themselves and everyone else. In their eyes, the first available customer X is desirable, as long as the deal is done without a loss. The thought that customer Y could have brought in profits ten times greater doesn't even cross their mind.
Quietly and gradually, the company starts accumulating customers it doesn't really need. Servicing them will require more employees in all departments.
Unfortunately, low profits with high turnovers raise risks. The business becomes fragile, cracking at any internal or external hiccup. The founder wonders, "Business for the sake of business. This is nonsense."
But the further it goes, the harder it is to change anything in the company. "Wrong" customers increase the share of "wrong" employees, and they, in turn, strengthen the "wrong" culture.
Of course, people are not to blame. No one explained to them the clear rules of the global game, so for survival and entertainment, they invent their own local games.
Some decisions impose greater responsibility on us. Hiring new people into the team is like buying a home rifle. You can't just leave it on the shelf. You must know how to manage this resource, understanding its danger, not just its benefit.
Sincerely yours,
-Alexander
About me:
As a business therapist, I help tech founders quickly solve dilemmas at the intersection of business and personality, and boost company value as a result.
How can I help you?
If you've long been trying to understand what is limiting you and/or your business and how to finally give important changes a push, then The Catalyst Session is designed specifically for you. Book it here.