Bootstrapped Startups: How Do You Build the Perfect Organizational Structure?

What can be an ideal organizational structure for a bootstrapped startup?

An ideal organizational structure for a bootstrapped startup would typically be flat and lean. This means having a small team with minimal layers of management to ensure efficient communication and decision-making. In a bootstrapped startup where resources are limited, it is crucial to have a structure that promotes agility and flexibility. Cross-functional teams can also be beneficial in this setting, allowing employees to wear multiple hats and work collaboratively across different functions. Additionally, having a clear hierarchy of roles and responsibilities is essential to avoid duplication of efforts and ensure accountability.

Structure Follows Strategy

There is a classic statement in Management Science that 'structure follows the strategy of the organization' (A.D. Chandler, 1962). So, it all depends on what your strategy is at this stage. The structure of the organization has to suit the strategy being adopted.

Organizational Structure for Startups

As a startup, it is better to structure the organization on a functional basis now. The core functions like production and engineering, followed by supporting functions like procurement, maintenance, and sales, could be separated out. Other functions such as Finance, HR, and Admin could also be included. There is no one structure that suits all the time; as the organization evolves, it has to restructure itself.