Startup Organizational Structure

If you want to create a startup company , then you must create a startup organizational structure so that the division of responsibilities and work tasks of each employee can be carried out clearly.

Currently, there are many startup companies in Indonesia. Various kinds of products are continuously made in order to meet market needs which can later lead to sales profits.

Well, for those of you who want to know how the organizational structure of a startup is and what positions are in it, then you must read this article to the end.

Definition of Startup Company

Startup Organizational Structure

Yevgeniy Brikman (2015) explains that a startup company is a group of people who create a new company organization by producing products that are highly needed and sought after in the market.

Generally, startup businesses are closely related to technology, so the organizational structure of startups must be able to adapt more quickly. Newly born startups generally still have to adapt their business models to dynamically moving market conditions.

The products produced must also be really needed by consumers so that the company can later survive well.

Startup Organizational Structure

Startup Organizational Structure

Even though a startup company is a company that is just starting out, it is still very important to create a startup organizational structure .

This startup company structure includes the positions, functions, responsibilities, rights and obligations of each individual in the related position or department so that later the company can run more efficiently and more effectively.

Startup companies will generally use a flat or flat startup organizational structure . In this flat startup organizational structure , the hierarchy and lines of authority for each employee tend to have the same rank.

Within this startup organizational structure , later the CEO will be at the top and other employees will be in the same rank under the leadership of the CEO. Each individual in it has the authority to make their own decisions based on their work experience and expertise.

This is clearly different in companies that have many employees and more complex structures. Where the decision-making process will generally rely on the hierarchy in the company’s organizational structure itself.

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The more growth and development of the company startup . Then later the organizational structure of the startup must continue to be updated so that the startup company can continue to develop properly.

When a startup company has developed and has more than 50 employees, the startup organizational structure can be changed again to be more formal.

In a formal startup organizational structure , the CEO’s administrative duties will later be distributed to managers in sharing their functions.

Startup companies will also be able to use a startup based on product organizational structure , where each employee will be placed based on a particular product.

Benefits of Startup Organizational Structure

The startup organizational structure is certainly able to provide many benefits for startup companies to achieve success.

In the future, the company will have clear responsibilities and goals in each part of the organizational structure, so that it will reduce ambiguity in the division of labor and the decision-making process is in the right hands.

The startup organizational structure will also create a strong company credibility, especially in the eyes of investors who will invest their capital in the startup company .

Role of Position in Startup Organizational Structure

Newly formed startup companies generally have only a few employees and will grow more complex as they develop and require broader marketing. Well, here are the roles and positions in the startup organizational structure .

1. Chief Executive Officer (CEO)

The CEO has a very important role for all companies, including startup companies . One of the considerations that make investors interested in investing is because of the quality of the company’s CEO.

A CEO must make a mature strategy and vision in order to develop his business and maintain good relationships with external parties, such as investors.

The CEO must be able to determine which market the company should enter, what products it wants to launch, and how to differentiate it from other competitors in the market.

The CEO also has to forge partnerships, make choices, set budgets, make acquisitions, and create a team that fits the company’s needs in order to achieve the target plans that have been previously made.

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Behind a successful company there will always be a quality team and individuals. A CEO must be able to place employees in the right position and maximize his team continuously so that the company has good performance and is able to achieve targets.

When you already have investors, the CEO must always update company information to investors. CEOs must also be able to manage a list of investors well based on their expertise so that they can be contacted when they need capital.

In addition, a CEO must also be able to predict the market trend of the product to be made, so that the product does not lose consumers in the market.

2. Chief Technology Officer (CTO)

An important role of the CTO in the startup organizational structure is to help companies achieve their financial and marketing goals, as well as maintain product excellence in a more sustainable manner by leveraging innovative technologies.

The job of a CTO in the early days of a startup company was an app architect . If the first version of the product is created successfully, it will require various updates from the original product. Now in this case, the CTO will handle all product improvisation processes or hand it over to a senior engineer .

The CTO must prepare a good server, manage the domain and SSL certificate , as well as third-party tools and ensure the level of website security.

The CTO will also be able to work closely with HRD for the interview recruitment process, job orientation, and engineer training.

3. Chief Financial Officer (CFO)

The role of the CFO in the startup organizational structure is not only managing the company’s financial management. They also have responsibility for the development of the company, make good relations with various parties, especially investors, and explain the value of the company in a more measurable way.

Later the CFO must check the company’s financial condition in the previous month or at a certain time period in order to ensure the company still has a sufficient budget and is in a healthy economic condition.

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So, the CFO has the responsibility to process, control, and also determine various matters relating to the company’s finances, including the company’s financial plans and reports.

4. Chief Marketing Officer (CMO)

Within the startup organizational structure , the CMO has full responsibility for marketing management. Its various tasks include increasing the prospects of users or customers of the company in order to increase the profits and also the revenue of the company.

CMO has a very important role in increasing brand awareness and retention of the target market, as well as leading a more effective marketing strategy. Another job of the CMO is to create marketing campaigns and conduct market research.

5. Chief Operations Officer (COO)

At the beginning of the formation of a startup company , generally this COO task will be carried out by the CEO. His duties are various things related to company operations, such as making the first board deck , making initial business models, explaining the work to all employees, selecting vendors, determining product prices, and so on.

Conclusion

Although in the early stages of creating a startup, the number of employees is still small, but making a company organizational structure is very important.

You can use a flat-type startup organizational structure where all startup employees have responsibilities and duties based on each of their own functions. In the early stages of creating a startup company , generally the startup organizational structure will be filled by the CEO, CTO, CFO, CMO, and also COO. Each of the chief’s duties must be reported to the CEO.

When a startup company is growing, then as an entrepreneur you have to add resources, including human resources and financial resources. Determine a healthy financial condition is the desire of all business people, including startup CEO.

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