🧞‍♂️ New to Exponential Scale? Each week, I provide tools, tips, and tricks for tiny teams with big ambitions that want to scale big. For more: Exponential Scale Podcast | Scalebrate | Scalebrate Hub

Founding Supporters: Support the following people and companies because they supported us from the beginning: DataEI | Dr. Bob Schatz | .Tech Domains | Fairman Studios | Jean-Philippe Martin | RocketSmart AI | UMBC

In this Week's Newsletter

Latest Podcasts: What You Missed

The Week in Exponential Scale (In Case You Missed It)

Miss a few Daily issues while actually running your business? We’ve got you.

Here’s a quick skim of everything we shipped in the Daily newsletter last week.

Free Daily Drops

Premium Drops

Daily News for Curious Minds

Be the smartest person in the room by reading 1440! Dive into 1440, where 4 million Americans find their daily, fact-based news fix. We navigate through 100+ sources to deliver a comprehensive roundup from every corner of the internet – politics, global events, business, and culture, all in a quick, 5-minute newsletter. It's completely free and devoid of bias or political influence, ensuring you get the facts straight. Subscribe to 1440 today.

Hiring Without Hiring: The Microteam Growth Paradox

You hit a bottleneck. Too much work, not enough people.

Your instinct screams: "I need to hire someone."

So you write the job description. Post it on LinkedIn. Interview 12 candidates. Negotiate offers. Onboard the new hire. Train them for weeks.

Three months later, you've added headcount. But you haven't solved the bottleneck—you've just added coordination overhead, payroll costs, and a new person who needs management.

Meanwhile, there's a better way. A way that adds capacity without adding headcount.

It's called "hiring without hiring."

And it's how the best microteams scale output without scaling the org chart.

The Founder Who Scaled to $3M Without a Single Employee

Let me tell you about Pieter Levels.

Pieter built Nomad List, Remote OK, and several other profitable products. Combined revenue: $3M+/year.

His team size? One. Just him.

No employees. No contractors (mostly). No "growth team." No "marketing department."

How?

He automated everything he could. He outsourced what couldn't be automated. He said no to work that didn't matter. And he built systems that scaled without human intervention.

Key moves:

  • Customer support: Built a comprehensive FAQ and self-serve knowledge base. Only answers complex questions manually (maybe 2-3/day).

  • Marketing: SEO-driven content that ranks organically. No ads team. No social media manager. Just good content that Google loves.

  • Development: He codes everything himself, but uses no-code tools and templates to move faster.

  • Payments/billing: Fully automated via Stripe.

  • Community moderation: Automated filters + community self-moderation.

Result: $3M/year revenue. $3M revenue per employee (it's just him).

"People ask me when I'm going to hire. I ask them: Why? What would a hire do that I can't automate, outsource, or eliminate?"

Pieter Levels

That's the mindset of "hiring without hiring."

What "Hiring Without Hiring" Actually Means

"Hiring without hiring" doesn't mean never hiring. It means exhausting every other option before adding headcount.

It's a hierarchy:

Tier 1: Eliminate

Can you just... not do this work? Is it actually necessary, or are you doing it because "that's what companies do"?

Examples:

  • Stop attending conferences that don't generate ROI

  • Kill features nobody uses

  • Stop doing "monthly reports" that nobody reads

You just added capacity by subtracting work.

Tier 2: Automate

Can software do this instead of a human?

Examples:

  • Use Zapier to automate lead routing (instead of hiring a VA)

  • Use Calendly to handle scheduling (instead of hiring an assistant)

  • Use Intercom bots to answer FAQ support tickets (instead of hiring support staff)

You just added capacity without adding payroll.

Tier 3: Systematize

Can you turn this messy process into a repeatable system that anyone (or AI) can follow?

Examples:

  • Template your sales emails so a tool or VA can send them

  • Document your onboarding process so it's self-serve

  • Create checklists for recurring tasks

You just added capacity by making work more efficient.

Tier 4: Outsource

Can you pay someone on-demand for this work, instead of hiring full-time?

Examples:

  • Upwork designer for one-off projects

  • Fiverr VA for data entry

  • Fancy Hands for administrative tasks

You just added capacity without adding fixed costs.

Tier 5: Hire Part-Time or Fractional

Can you hire someone for 10 hours/week instead of 40?

Examples:

  • Fractional CFO (instead of full-time finance hire)

  • Part-time content writer (instead of full-time marketer)

  • Contractor developer for a specific feature (instead of full-time engineer)

You just added capacity at 25% the cost.

Tier 6: Hire Full-Time (Last Resort)

Only after you've exhausted Tiers 1-5 should you hire a full-time employee.

Why?

Because full-time hires are the most expensive, least flexible form of capacity.

"Hiring without hiring" means climbing this ladder slowly and stopping as soon as you solve the bottleneck.

Why This Matters for Microteams

Big companies hire first, optimize later. They can afford it.

Microteams can't.

For microteams, every hire has massive consequences:

Consequence #1: Payroll Is Your Biggest Fixed Cost

A $60K/year employee costs ~$75K/year (salary + benefits + taxes + overhead).

That's $6,250/month in fixed costs that don't go away if revenue drops.

Automation costs $100/month. Contractors cost $0 when you're not using them.

Fixed costs kill startups. Variable costs give you flexibility.

Consequence #2: Coordination Costs Scale with Headcount

The more people you add, the more time you spend in meetings, syncing, managing, and aligning.

Brooks's Law: "Adding people to a late project makes it later."

Why? Because onboarding, training, and coordination slow you down in the short term.

Consequence #3: Hiring Is Slow and Risky

From job post to productive employee: 2-4 months.

Meanwhile, you could automate the task in 2 days.

And there's no guarantee the hire works out. 30-50% of hires fail in the first year.

Consequence #4: You Lose Agility

With 3 people, you can pivot in a week.

With 15 people, pivoting takes months (and layoffs).

Lean teams move faster. "Hiring without hiring" keeps you lean.

The "Hiring Without Hiring" Framework

Here's how to scale capacity without scaling headcount:

Subscribe to keep reading

This content is free, but you must be subscribed to Exponential Scale to continue reading.

Already a subscriber?Sign in.Not now

Recommended for you

No posts found