Expanding from a small team to a company with hundreds of employees is a challenging but rewarding journey. I had this experience with the last company I built: It started with ten people who mostly outsourced services and grew into several autonomous teams with diverse expertise. But the road was not without bumps.

Many difficult decisions (and, of course, mistakes) taught us a lot along the way. So, I'd like to share five key insights from my company's journey that can help aspiring entrepreneurs grow their businesses.

1. Strategy comes first

As a startup, we were ambitious, thinking big and expecting rapid growth. We wanted to get hands on and get down to business right away. This approach definitely had its advantages in the beginning: we learned on the go and had many important lessons.

However, over time it became clear that everyone on the team had different goals in mind and we were all moving in different directions. We reacted to immediate challenges instead of working towards long-term goals.

We needed a common vision. Otherwise, growth would not be possible.

That's why we took a step back and focused on developing a strategy that defined our goals and the steps to achieve them. This allowed us to prioritize tasks, allocate resources more effectively and ensure that every team member followed a common path.

So my advice here is to create a clear roadmap for your business from the start. If all people work towards a goal, they are more likely to achieve it faster.

2. The new team does not mean new managers

According to the US Bureau of Labor Statistics (BLS), about 20% of new businesses fail within the first two years of their operation. Fortunately, that was not our case.

Because of our hands-on approach, the business was growing rapidly. However, there was a hitch: our expertise wasn't coming. We couldn't the education of our teams quite quickly or expand our knowledge. Since all the team members had been working together for a long time, it was like the blind leading the blind.

Reflecting on this experience, I strongly recommend hiring skilled senior managers who already have the expertise to lead the new business. Of course, you should still invest in your existing team, but don't ask for what they don't have; give them time to grow. In the meantime, make sure your business benefits from experienced leadership.

Bringing in qualified managers made a difference in our company's operations. They very quickly identified areas for improvement, which allowed us to cope with the increased workload. Thanks to them, we created a solid foundation for sustainable growth.

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3. Ideas before data are hypotheses

At the beginning of our business, we accepted partnership proposals or started acting on ideas without conducting internal analysis. Some projects seemed to have potential, however, in the end, many of them did not meet our expectations and did not bring strong results.

After a few disappointments like these, we learned a simple fact: before the data says otherwise, every idea should be treated as a hypothesis.

Then the data became our guide. We started getting closer DECISION with thorough analysis, using data from competitors and hiring leadership who can provide valuable insights from their previous experience. Over time, each business step was supported by concrete evidence and strategic insights.

Going from 10 to 500+ people would not have been possible without this shift. If we wanted to grow, we had to recognize the projects that weren't going to work from the start.

4. Stick to your strengths

It can be tempting to expand your startup into multiple areas and directions. However, if not done wisely, diversification your business could dry up. You should only develop products where you have the expertise and proven results.

Over the years, we kept several fully developed products and a team in place, despite the fact that they were unprofitable. We held on to them and hoped that something might change. But without a real competitive advantage (which we didn't have), there was little cause for optimism.

So, to prove our ideas, we ran A/B testing, using minimal functionality and driving traffic to see the cost per click. Then, we analyzed whether to develop the project or close it.

5. Where there is structure, there is accountability

During the start-up period of our company, there was no clear distribution of responsibilities. Roles were loosely defined and we were unsure who was responsible for which tasks.

When we had questions about the status of the project, we had to consult the whole team without knowing who held the authority. It caused stress to both managers and employees.

Over time it simply became necessary to implement a structure, but we faced resistance from employees. However, this was perfectly normal: according to Oak Engage change report37% of employees are resistant to change.

To make this process smoother, we held meetings to explain the reasons for the change. The most effective approach was to explain how any change would benefit everyone: what would happen if we implemented the change? What would happen if we didn't? Later, we started general meetings to synchronize the whole company.

As a result of this change, employees became less stressed and more focused on their field of work. This had a positive effect on their efficiency and, in turn, on the increase in income.

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Transforming a small startup into a large company always comes with challenges, uncertainties and risks. However, it can be a more enjoyable journey if you can learn from the experiences of other entrepreneurs.

Prioritizing strategy over tactical decisions, focusing on strong areas and data-proven hypotheses, and support from qualified managers and like-minded employees can help you grow your startup quickly but smoothly. Finding the balance is the key to successful operations and market expansion.