In this episode, I tackle a critical topic that often flies under the radar in the startup world: the distinction between hiring for capacity and hiring for capability. Understanding this difference is essential for your company's growth and financial health.Visit the <a href="https://organizedchaos.fyi" target="_blank">Organized Chaos website</a> and subscribe to the podcast newsletter to receive additional content.Got a Question or Topic Suggestion?<ul><li>Connect with me on <a href="https://www.linkedin.com/in/khairallahnahed/" target="_blank">LinkedIn</a></li><li>Reach out by <a href="mailto:hello@organizedchaos.fyi" target="_blank">email</a></li></ul>

We explore the critical difference between hiring for capacity (adding more people to do existing work) versus hiring for capability (bringing in new expertise for different tasks) in the startup world. Through real-world examples, including an electronics manufacturer's costly over-hiring mistake and a SaaS company's mismanaged contractor situation, the episode illustrates how misunderstanding these concepts can lead to financial strain and potential business failure. The discussion emphasizes the importance of evaluating whether operational inefficiencies can be addressed before adding headcount, and making strategic decisions about whether capabilities should be built in-house or outsourced based on their relevance to core business functions.

Ep. 14 - Hiring for Capacity vs Capability: Why it Matters for Scaling Your Startup