Melissa Franks

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Why Building a Smart Team Matters More Than Team Size

When starting your business, you wear all the hats. From CEO to customer service, you're the one making everything happen. It's a tough but enlightening experience because it forces you to be laser-focused on what truly drives impact. As your business grows, so does the need for support—and this is where many entrepreneurs stumble.

There’s a common misconception that having a large team equates to success. After all, a big team must mean you’re killing it, right? Not exactly. A team’s size doesn't define its effectiveness. What matters is how you build and manage it to sustain growth without sacrificing profitability.

The Solopreneur Stage: Embrace the Margin

As a team of one, your priority is clarity. You quickly figure out what’s essential—whether it’s fulfilling client needs or running ads. What happens when you want to expand? Perhaps it’s creating content, launching a podcast, or writing a book. That’s when the need for margin—or breathing room—arises.

Creating margin doesn’t mean hiring employees right away. Instead, start with freelancers or service providers for tasks like scheduling, podcast production, or social media. This approach allows you to test what works before committing to full-time hires. Remember: employment is transactional, not a promise of loyalty. Make every hire count by prioritizing expertise over headcount.

Avoiding the Big Team Trap

Let’s take a cautionary tale from Rachel Hollis’s business journey. After experiencing a meteoric rise, she purchased two office locations, relocated her entire family to Austin, TX and her team swelled to 60 people. She had products in Target, 6 large sold out conferences, speaking gigs, and the possibilities were endless, until . . .

COVID-19 hit and her revenue streams dried up, her business model predicated being in person with people and that wasn’t an option. She had bloated overhead for buildings that were now empty and she had a team that had NOTHING TO DO.

Her overextended business couldn’t sustain the team. The result? Massive layoffs and scaling back to the essentials. Now, 4 years later, she is a team of 1 with a handful of freelancers, she didn’t need the 60 person team to be successful, getting lean is how she weathered the strom.

The lesson here is simple: grow smart, not big. Your business should feel tight and efficient, even during growth phases. A lean operation with purposeful hires can weather tough times far better than a bloated one.

How to Build a Team That Supports Growth

  1. Start With Clear Job Descriptions
    Define roles with precision. Clarify responsibilities, authority, and how success is measured for everyone—from employees to contractors. This clarity prevents redundancy and ensures everyone knows their part.

  2. Test Before You Invest
    Before creating a permanent role, consider contractors or part-time help. Think of it like trying on clothes—you may need to tweak or adjust the role before it fits your business perfectly.

  3. Focus on Revenue-Driving Roles
    Every new hire should contribute to growth. If a role doesn’t directly or indirectly boost revenue, reconsider. Remember, the cost of inefficiency grows with each additional team member.

  4. Mix Employees and Service Providers
    Employees are essential for continuity in repetitive tasks, while service providers bring specialized expertise when you need it. This combination is how the biggest corporations—and successful small businesses—achieve scalability.

Profitability Over Flash

A profitable business isn’t always glamorous, but it’s sustainable. Resist the urge to inflate your team just to keep up appearances. Social media may glamorize big teams and busy offices, but behind the scenes, many businesses struggle to break even. Slow, deliberate growth will always outperform flashy expansion.

Plan Your Next Steps

As you look to 2025, consider whether your team is optimized for growth. Not sure where to start? I offer one-day VIP planning sessions to help you map out your strategy for the year ahead. Together, we’ll pinpoint opportunities, streamline operations, and set you up for success.

If you’re ready to make smart decisions and unlock your business’s potential, book a call today. Let’s ensure your team—and your business—thrives.