The 7 Stages of Building a Small Business Team

As a business owner, have you found yourself wondering what's next after hiring a few employees?

Are you spending more time managing people than doing the work you love? If so, you're not alone.

Many business owners reach a point where they ask themselves, "Am I really in the people management business?" The answer, more often than not, is yes. But there's good news—you don't have to stay stuck in that role forever.

In this post, we'll explore the evolutionary stages of business growth, particularly through the lens of team building. Understanding these stages will help you plan your next steps, whether you're just starting out or you're ready to scale to new heights.

Stage 1: Doing It Alone

In the beginning, it's all you. Every task, every decision, every responsibility rests on your shoulders. This is the stage where your business is in its infancy, and while it can be exhausting, it's also where you have complete control over everything that happens. But as your business grows, you'll find that doing it all yourself is no longer sustainable.

Stage 2: Hiring a Person

The first major shift happens when you hire your first employee—a Jack or Jill of all trades. This person is often someone who can help with a little bit of everything, relieving some of the pressure you're feeling. However, while you've offloaded some tasks, you've also added a new responsibility: managing this person.

Stage 3: Outsourcing Functions

As your business continues to grow, you'll likely need to bring in experts to handle specific functions that are outside your wheelhouse. This is where outsourcing comes in. Whether it's marketing, social media management, or operations, outsourcing allows you to elevate your business by leveraging the expertise of others. But remember, just because you've outsourced doesn't mean you're off the hook—you still need to manage these relationships.

Stage 4: Hiring Managers

At this stage, your business has grown to the point where you need to bring in managers—people who can oversee the day-to-day operations and manage other employees. The key difference between managers and future hires like directors or executives is that managers still roll up their sleeves and get things done themselves. Hiring managers allows you to begin stepping back from the minutiae of your business, but you're still in the game, managing those managers.

Stage 5: Bringing in Directors

Directors are the next level up from managers. While managers handle specific functions, directors oversee multiple functions within the business. For example, a director might manage both marketing and operations, freeing you up even more. This is the stage where you start to see significant gains in time freedom, as you're now managing fewer people directly.

Stage 6: Insourcing Functions

Remember those functions you outsourced back in Stage 3? Now that you have directors in place, it's time to insource those functions and bring experts onto your team full-time. This shift marks a turning point in your business's growth, as you're now operating at a level where you can support a more robust internal team.

Stage 7: Hiring Executives

The final stage in this evolutionary process is hiring executives—people with the experience and expertise to take your business to the next level. These are the "chiefs"—Chief Financial Officer, Chief Marketing Officer, Chief Operations Officer—who have a proven track record of helping businesses achieve exponential growth. Hiring executives is a game-changer, as they bring the strategic vision and leadership needed to propel your business into the eight- or nine-figure range.

Buying Back Your Time

One of the biggest misconceptions in business is that hiring people automatically buys back your time. The truth is, your time only becomes freer as you move through these stages and delegate responsibilities to others. Even then, you need to be intentional about how you onboard and manage your team.

When you reach Stage 3 and begin outsourcing, you might think you've gained more time. But in reality, much of that time will be spent managing your new partners. The same is true when you hire managers and directors—you're still managing people, just at a higher level.

The real freedom comes when you reach Stage 5 and beyond. By the time you've hired directors and executives, you can finally step back and focus on what you do best, whether that's innovating, serving your customers, or taking a well-deserved vacation.

Conclusion

Growing a business is a journey, and understanding the stages of that journey is crucial to making informed decisions. As you navigate each stage, remember that your ultimate goal is to build a team that allows you to focus on what matters most to you. Whether you're just starting out or you're well on your way to hiring executives, there's a path forward that can help you achieve the time freedom you crave.

So take a deep breath, assess where you are in the process, and start planning your next steps. With the right team in place, your business—and your time—can truly thrive.

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