Important Positions in Startup Organizational Structure

A suitable and best organizational structure for a startup is necessary to define at the beginning. Through a suitable organizational team structure and position, the startup company will be able to run well. But, without a proper organizational structure, then the company cannot run properly.

However, certain startup companies feel not sure about their organizational structure. So that they still looking for the best organizational structure for a startup and what positions are needed in it. 

If you are one of these people who is looking for this case, see the following lists. You will be able to find several important positions that must be present in a startup company. But first, understand the benefit of this startup team structure.

Read also: 5 Main Role of Venture Capital on Startup Business

The Benefit of a Clear Organization Structure

Startup company organizational structure (Source: Freepik)

Before determining what positions are needed, it is necessary to know how important it is to develop an organizational structure for startup companies.

By having an appropriate organizational structure, there are many benefits that can be achieved by the company.

Some of the benefits of having a good startup organizational structure are:

1. Help in Reporting

With this team structure, each employee will understand their responsibility and reporting mechanism. Every task can be well completed so that the company’s aim can be reached.

2. Increase Employee Morale

A clear organizational structure also can help to increase employee morale. A good job description helps an employee to understand well regarding their task. Therefore, it can make them feel secure and comfortable performing their job accordingly.

This also helps companies in human resource management and increases employee retention. For a more complete explanation, you can read it in ASEAN’s Growth & Scale Talent Playbook.

3. Evaluation

Another benefit is to help an easy evaluation regarding the company’s aim and target. With a clear description of the job for each employee, the company can evaluate according to this task. So that in case of any issues, it can easily find which area the issues are and how to manage with the resolve.

Read also: Crisis Management Plan, Is It Important for Startups?

Lists of Important Positions in Startup Organizational Structure

Startup organizational structure (Source: Freepik)

The name of a position in startup company structure can be different. However, in general, the organizational structure at startups has the following positions:

1. CEO (Chief Executive Officer)

This is an important position in a start-up company. Where the position of Chief Executive Officer is a leader in all divisions in the company. So that its role is a motivator for all workers under it.

2. CTO (Chief Technology Officer)

This position is a leader in the field of technology in start-up companies. Where start-up companies rely on technology that continues to develop. So this position is quite important to ensure the appropriate technology in developing the business for the better.

3. CFO (Chief Financial Officer)

Next is the position of the chief financial officer who is in charge of regulating all financial transactions in the company. So that later all income to expenditure can be controlled properly. Furthermore, this position is very critical since it will manage an optimum company’s financial cash flow. So that the startup company can reach its expected profit.

Read also: Seed Funding and Ways to Get Investors for Startups

4. CMO (Chief Marketing Officer)

Start-up companies also need this important position. Where the position is tasked to support the appropriate marketing strategy in the company. 

Through the right strategy, then of course the company can develop better. So that the higher the profit that can be achieved and the greater the growth that can be achieved by the company as well.

5. COO (Chief Operating Officer)

It is very important to manage all the activities of the company every day. So this position is needed to exercise control over the company’s day-to-day operations. To run smoothly without obstacles. The position shall also be able to control all of the employees to run all the job activities according to their responsibilities. So that it will manage to reach the company target accordingly.

Also read: What Is a Chief Business Officer (CBO) and Their Role in Startups?

That’s an explanation of various important positions that generally exist in startup organizational structures.

By knowing some of the examples above, it will be easier to determine the role needed when structuring a startup company.