Paul Graham argues that a large team is a greater liability than low cash when a startup needs to pivot. Having many employees forces the founders to find a new idea that fits the existing team's capabilities, drastically limiting their options compared to a small founding team that can pursue anything.
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Flexport's CEO advises founders who've raised a large round to immediately implement a 90-day hiring freeze. This prevents the team from defaulting to hiring as the solution to every problem, reinforcing a culture of internal problem-solving and preventing the new capital from creating bloat and slowing the company.
Bootstrappers should avoid modeling their processes after companies like Apple or Basecamp, who have near-infinite time and resources. Instead, look to other successful solo founders or small teams who operate under similar constraints for more relevant and applicable strategies.
As startups hire and add structure, they create a natural pull towards slower, more organized processes—a 'slowness gravity'. This is the default state. Founders must consciously and continuously fight this tendency to maintain the high-velocity iteration that led to their initial success.
Resist hiring quickly after finding traction. Instead, 'hire painfully slowly' and assemble an initial 'MVP Crew' — a small, self-sufficient team with all skills needed to build, market, and sell the product end-to-end. This establishes a core DNA of speed and execution before scaling.
By strictly limiting team size, a company is forced to hire only the “best in the world” for each role. This avoids the dilution of talent and communication overhead that plagues growing organizations, aiming to perpetually maintain the high-productivity “mind meld” of a founding team.
Contradicting the common startup goal of scaling headcount, the founders now actively question how small they can keep their team. They see a direct link between adding people, increasing process, and slowing down, leveraging a small, elite team as a core part of their high-velocity strategy.
Founders often start scrappy out of necessity and dream of lavish resources. However, once successful, many realize that small, lean, and scrappy teams are more effective. This creates a paradox where the most successful entrepreneurs intentionally revert to the resource-constrained mindset they once tried to escape.
Gamma's CEO resists the pressure to scale headcount aggressively, arguing that doubling the team size does not guarantee double the speed. He believes a smaller, more agile team can change direction faster, which is more valuable than raw speed in a rapidly evolving market.
The primary goal of hiring should be to reclaim the founder's time from low-value tasks. This frees up the business's most valuable asset—the founder—to focus on high-leverage activities that truly drive growth, rather than simply adding capacity.
Hiring someone with a prestigious background for a role your startup isn't ready for is a common mistake. These hires often need structure that doesn't exist, leading to their underutilization and boredom. It's like using a "jackhammer when all we needed was a sturdy hammer."
