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Hiring as an attempt to drive "real" growth (revenue/market share) I can understand but my argument is that the marginal gain of every new employee seems to dro
by spyspy 9y ago
Hiring as an attempt to drive "real" growth (revenue/market share) I can understand but my argument is that the marginal gain of every new employee seems to drop off quickly. I can understand hiring more sales reps if that's the bottleneck in getting new customers or more support staff if that'll improve customer retainment. I just don't support hiring 20 more project managers because that's what someone feels like the company should have at this stage.
- mrkurt 9y agoYes, I think what you're witnessing is badly managed companies, or companies that don't have much of a future. I'm fairly sure no VC on earth would recommend hiring 20 more project managers.
- pcsanwald 9y agoI agree, but I also think that if your product isn't where the VC thinks it needs to be, and you've got plenty of money in the bank, that VC isn't going to tell you to take all the time you need: they are going to tell you to focus on hiring great people so you can build faster. "You need to hire more/better people" is just the standard response to almost any problem.
- nylonstrung 9y agoHow else could you put invested money to work in a company with no assets except to spend it on advertising though?
- charlesdm 9y agoThat's the VC game. Those funds aren't giving you millions of dollars to keep in the bank. You grow (by spending it) or die.