TradeBriefs Editorial

From the Editor's Desk

Why Startups Fall Apart at 50 Employees


Ask anyone who’s worked at more than one startup and they’ll probably tell you the same thing: Young companies start to go off the rails once they hit 50 employees. I call this the "teenager" startup phase, and I've been there several times, both as an employee and an executive.

What does this look like?

Employee one through 10: At a certain point, the original employees stop learning new people's names. They won't come right out and say it but they start to resent having to show yet another noob how to do the same simple things. Their tolerance for mistakes, even for the same mistakes they once made themselves, goes into the toilet.

Employee 10 through 25: The second tier of employees then starts to form small, protective cliques. They may occasionally drop references to the "good old days." They place a growing importance on things like titles and status. Discussions might start to percolate about adopting the title prefix "Senior."

Continued here

Read TradeBriefs every day, for startup advice!

Advertisers of the day
INSEAD: The INSEAD Leadership Programme for Senior Executives - India
Wharton Business Analytics Team: Wharton's Business Analytics Program (Online)

Our advertisers help fund the daily operations of TradeBriefs. We request you to accept our promotional emails.

You are here: Home Opinion Why Startups Fall Apart at 50 Employees