ArticleAdding Staff Isn't a Sign Of Success, Revenue Is

Adding Staff Isn't a Sign Of Success, Revenue Is

Celebrating adding staff is like celebrating the cost of a wedding — it's the liability, not the achievement.

It seems like everyone loves to champion the importance of "scaling our staff," whether it's the media or our local government talking about job creation (when is the last time a startup was successful because it met a job creation metric?) Of course, we proudly announce we're hiring because it implies that our business is doing well, right?

While that may be true, the reality is adding staff still falls under the cost bucket of our income statement, and while those important hires may help us grow revenue, the important distinction is that they are not, in fact, revenue.

They are actually a massive cost, and in most startups, by fa...

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