For many startups, the total rule is "lean, green, mean". Do what you most need to do, as fast as you can, with as little excess, or non-mandatory, work as possible. When I was co-founder of our company, it was not unusual to be working 80-hour weeks. We knew what we had to produce and we had a few methods to try to get it into the hands of people who would pay us for them. (We soon needed to expand that "marketing and sales" aspect of the business.)
That is the basics of trade in a nutshell -- produce what is of value to others who will give back things of value to you.
That works in a barter economy as well as in an industrialized, capitalistic, economy. It is also true within other viable economic systems. As the business, or economy, or government, grows it can often end up "abstracted" where it is difficult to say exactly what things of value are being exchanged.
Leap ahead and start imagining a business that has thousands of people working to provide tens of thousands of things of value and having to keep track of a hundred thousand purchases and transactions. If it all works smoothly then it could be done in the same manner as when the trade was just between you and someone else -- that simple, basic, barter agreement.
But this is reality. There are few one-to-one relationships between any person and any proceeding from start to finish. Person A does one part to process C and Person B does something different to process G which directly influences process C but A has no direct visibility to process G.
Confusing? Absolutely. And this is still only a very simple situation. There needs to be some type of documentation -- method of communication -- between Person B and Person A that provides insight into relevant aspects of Process G without inundating Person A with all of the other knowledge and systems that Person B is handling.
So, simple transactions have need of simple processes. High numbers of interrelated transactions, people, and processes have need of much better access to, and keeping track of, relevant information. How do you succeed in growing the business from simple to complex?
The base answer is "structures" which can be loosely defined as ways to organize information about what is being done, (who/what/when/where/why) by the people who originate the information, to have it accessible to those who need to know that information. The other leg is "processes" -- which is involved with how that information is processed, saved, distributed, and otherwise not lost in the cascading effects of a successful large business.
Processes can (and do) make use of various apps and programs. But without structures, the processes cannot do much of anything because they don't have the data with which to use those processes. Also, processes differ with every aspect of the business. A process for generating ideas. A process for estimating, and keeping track of, work. A process for manufacturing inventory and supply control chains. And so forth. But all of the processes rely on structures.
The primary importance of determining just what information is needed for the business is that it remains approximately the same no matter how large the company gets. (Yes, as a business reaches certain growth points, new regulations may come into play.) This facilitates growth. The information has to be there but, when the company is small, it can be retained within various people's memories. Just like it seems to be true to a teenager, all employees of a startup are deemed to be immortal and those valuable data are always available.
Absurd? Certainly. But it is so very easy to eliminate those items, that seem to not immediately affect the bottom line, when you are small, focused, and overworked. Resist. The data can be written on a large notepad or, for transitory data, on a white board. But get it written down. As the company grows, you are going to run out of room on those notepads or they will become too many to search through easily. So, you develop (or obtain) new processes and applications that help you to manage that data. But you already are used to getting, and documenting, that data. You are prepared for growth.
