What are some strategies for companies in very early stages (2 to 10 employees) that can help avoid friction as they scale up? What can company leaders do to ensure they start adjusting early so that when the company reaches a certain growth level, they don't find themselves making wrong decisions? 

For early-stage companies, the key to scaling smoothly is laying solid foundations from the start. Leaders should focus on defining clear roles, even if people wear multiple hats, and building a strong culture that guides decisions and hiring. Invest in tools and systems that can grow with the team, and keep processes simple but consistent. Hire people who not only have the right skills but also align with your values and are adaptable to change. Open communication is critical regular updates and transparency help avoid confusion as the team grows. Start documenting how things are done early, so it’s easier to onboard new people. And most importantly, practice delegation. Trust your team to take ownership so you can focus on strategy rather than micromanaging.

Many comments under this post provide excellent and valuable advice that answers your question. However, I see these responses more as recipes for how to carefully plan, organize, and manage a startup - essentially one crafted by a consultant for a specific project. Yet, startups often emerge over a beer, a bike ride, or in someone’s garage. Nobody plans them, nobody directs them; they simply become the realization of a dream.

Suddenly, you have a group of eight friends, each skilled in their own way, but lacking the polished and trained abilities that theory often emphasizes. Keeping such a startup alive is truly a challenge.

I was part of such a project. Admittedly, I joined after the “garage phase,” but we could still count the team members on two hands. A few years later, the team grew to a hundred people and continues to expand.

The key factors were trust, openness, empathy, and prioritizing character and personality over skills. At the same time, clear communication of goals, ideas, and development plans, combined with general business transparency, helped gather a team of people you could “go to war with” - who also wouldn’t let you down in a crisis (like a full system crash on a Sunday evening).

I have participated in numerous discussions regarding startup operating models. The most successful strategies identified so far include:

1) Structuring the organization around value creation.
2) Ensuring scalability from the outset.
3) Maintaining a holistic perspective at all times.
4) Making sure the customer is central to solution design and service/product delivery.
5) Adopting a 'measure twice, cut once' approach to ensure precision and efficiency."

For early-stage companies, it’s essential to define and live by core values from the outset, creating a foundation of open communication, role clarity, and a growth mindset. Leaders should foster a high-trust, feedback-rich, collaborative environment that emphasizes learning and adaptability, helping employees build resilience as roles and needs evolve. Introduce flexible but scalable processes—such as a basic onboarding framework and regular check-ins—to maintain alignment and cohesion. Prioritizing development and celebrating small wins cultivates a sense of shared purpose and agility, empowering the team to grow together seamlessly as the company scales.  Before you know it, you will be at 50 employees and having this foundation in place will make a huge difference!

For early-stage companies, bringing in talented individuals with diverse functional expertise is crucial. These individuals should not only be seasoned in specific areas but also possess a broader understanding of various functions and the willingness to take on multiple roles to achieve team objectives. This cross-functional setup provides an opportunity for team members to explore areas outside their primary expertise, potentially sparking new interests and skill development. Continuous conversations about aligning individual career goals with the evolving needs of the company are essential. Some employees may find synergies in overseeing multiple functions, while others may prefer to specialize deeply in a strategic area. By encouraging adaptability and fostering professional growth, leaders can ensure smooth scaling and prevent missteps as the company expands.