Growth and change in startups

Startups often start small and then grow – sometimes faster, sometimes a little slower. In any case, at the beginning there is a visionary and a small team, often consisting of friends and acquaintances. Some startups advance their idea so successfully that the founding entrepreneurs quickly become CEOs and suddenly become managers in a rapidly growing company. What does this mean for the management of the young company and how can startups deal with this growth?

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At the beginning of every startup there is an idea from an entrepreneur. You quickly initiate your circle of friends, find support in your family and get a few acquaintances on board. The first implementation then takes place in this environment. Motivation, initiative and entrepreneurial spirit characterize the working environment in this initial phase. At the same time, there is often a relaxed, familiar working atmosphere. Of course, the basic rules when dealing with employees must be adhered to even if you are close to each other. As a startup grows, it is essential that some of the relaxed approach is left aside and the management style becomes more professional.

Adapt the leadership style to the startup growth

If an entrepreneur is alone in the early stages or leads a team of friends, there are probably no regular employee discussions. Feedback is direct and spontaneous. Praise, criticism and feedback should, if possible, be incorporated into everyday work as the company grows. Regular employee discussions, regular meetings and an open exchange are also essential for successful leadership in startups.

If a growing startup recruits new team members, these are usually people who have not grown with the idea. That's why it's important to convey the vision and lived values to the new hire. In this way, new employees are infected with the entrepreneurial spirit and can be motivated to work towards the common goal.

Handing over responsibility as a startup manager

Having a larger team also means handing over responsibility and knowing your own role. This includes distinguishing between operational and administrative aspects. At the beginning, a visionary is always at the forefront, developing, promoting; is an all-rounder. Over time, however, the area of responsibility develops more towards leading others and administratively coordinating them. In other words: The operational part is taken over by others. Startup managers not only hand over responsibility, but also the ability to make decisions. It is therefore advisable to develop a leadership style right from the start that offers space for other opinions, decisions and ways of thinking.

In order to ensure that all employees act in the interests of the company, regular communication is important. Structured, scheduled meetings provide an overview of what is happening in the company and who is responsible for what. This gives employees insight into the manager's own ideas, concepts and priorities. This in turn can ensure that the company is on track.

Communicate management decisions internally

Whether in writing, by email or in person in meetings or conferences – management decisions and changes must be communicated transparently and directly to the team. If employees learn from third parties that changes are coming, this can weaken trust in management and unsettle employees.

Good leadership communication also includes listening to employees and not losing sight of the team. If a manager knows the employees - even when there is a large increase or after changes - this shows appreciation and collegiality. Is a new location opening? Is someone new joining the team? Meetings and exchange opportunities with employees create an initial basis of trust. Observing changes and growth in the team is just as important as keeping an overview of the market.

HR solutions for startups

When more people are employed, more administrative capacity is required, especially in the area of human resources. A larger team means more wage payments and growth requires recruiting, which requires application processes. The human resources department is also an important contact who can assist employees with problems and requests during their employment. If the resources are available, a separate HR department can be created for this purpose. However, temporary solutions with an HR partner are more efficient and cost-effective.

These are usually the more sensible measure in the development and growth phase of startups. A startup can hire an external agency to handle the recruiting process. This is more effective than simply advertising job advertisements and usually promises to quickly find someone suitable for a position. Alternatively, a startup can bring an interim HR specialist into the company. This means that an HR specialist is temporarily integrated directly into the team and is therefore close to everyday company life.

Startup growth requires infrastructure

Adapting the administration and management style is one thing, but startup growth also means expanding spatially. Because new employees need a place to work. This applies to rooms, office furniture, but also work equipment. If the existing space is not sufficient, it must be expanded. In this case, a startup has to consider whether it wants to expand the existing location with another location or whether it is looking for a completely new location.

If the resources are not available for such a costly investment, mobile working and working with your own device (Bring Your Own Device) are options for minimizing a comprehensive expansion of the infrastructure. However, attention must be paid to clear agreements and the rights of employees. And in the long term, home offices and co-working spaces do not replace office space. If there are signs of strong growth, it is important to plan carefully in advance and respond to the changes.

Startups and growth: conclusion

545 / 5,000 Startups are dynamic. Brand new ideas, turbulence in the development phase and sudden growth ensure that no ordinary work situation arises. To ensure that all employees feel comfortable and secure even during changes, some measures such as an adapted leadership style, open communication, professional HR and forward-looking planning are unavoidable. This professionalization gives the already fast-paced startup business life a little more stability and security.