Happy Thursday, 👋
Startups are no strangers to chaos. A certain level of disorder is often expected with early-stage companies. Priorities shift, products break, customers change course, and roles blur across a small team. At first, this whirlwind can feel energizing, proof the company is moving fast and making things happen. But over time, chaos stops being a catalyst and starts becoming a crutch. Worse, it can numb a team into thinking that dysfunction is just the cost of doing business.
This is a dangerous place to be. When chaos becomes the norm, companies lose their ability to grow with intention. The same mental energy that could be spent on innovation or customer success is instead consumed by firefighting and reactivity. Startups often get stuck in what feels like forward motion, but in reality, they’re running in place.
Why Chaos Happens in Startups
Startups operate in high-uncertainty environments. Problems appear out of nowhere. Teams are small, roles are fluid, and everyone is trying to do as much as possible with limited resources. This kind of pressure makes it hard to step back and implement structure. Founders worry that too much process will slow things down or stifle creativity. So they push forward with good intentions and end up building a business that reacts instead of leads.
The Numbing Effect of Chaos
When the team is constantly in “go mode,” it’s easy to confuse activity for progress. Every day feels full as schedules constantly change, meetings get moved, and there’s always a fire to put out. But that pace leads to fatigue. People get used to disorder and stop questioning whether there’s a better way. Processes go undocumented, knowledge gets siloed, and the organization starts operating on muscle memory instead of deliberate strategy.
Signs You Might Be Stuck in Chaos
Here are a few red flags that your team may be living in chaos:
Meetings are reactive, not proactive
Priorities shift week to week without documentation
Key processes only exist in someone’s head
There’s no predictable rhythm to the business
Try this simple exercise: on Sunday night, take a screenshot of your upcoming weekly calendar and to-do list. Then on Friday afternoon, compare what you planned with what actually happened. Did priorities shift? Did key tasks fall through the cracks? If the week looks nothing like what you set out to accomplish, it might be a sign that chaos is quietly running the show. Chaos is good at hiding, until you know where to look.
The Value of Structure
Startup founders often push back on the idea of structure as many left old jobs precisely to escape it. When done right, structure should not feel limiting. It should serve as the foundation that allows teams to move faster and smarter. With repeatable systems and clearly defined roles, resources can be allocated more effectively, and focus can shift back to innovation and growth. Structure gives your team the breathing room to think, plan, and execute, not just react.
How to Transition from Chaos to Coordination
You don’t need to overhaul everything at once. Small steps can shift a chaotic culture:
Acknowledge the problem: Recognize that what got you here may not get you to the next level.
Start small: Document one key process each week such as customer onboarding, product testing, or financial reporting.
Introduce rhythm: Create regular touchpoints like weekly planning meetings, retrospective discussions, or project debriefs.
Clarify roles: Everyone doing everything might work early on, but it does not scale.
Celebrate structure: Make operational wins part of your culture, clean handoffs, efficient meetings, clear documentation.
Revisit regularly: Like any good foundation, structure must be maintained. Schedule periodic evaluations where nothing is sacred. If a process is outdated or no longer serving its purpose, update or remove it.
Final Thoughts: From Chaos to Clarity
Chaos might be part of your startup’s early story, but it does not have to be the whole narrative. The companies that scale are the ones that recognize when chaos is no longer serving them and take deliberate steps toward coordination. That’s where real performance begins.
It’s also important to recognize that chaos can be addictive. Some team members thrive in the constant urgency and unpredictability, and not everyone will welcome a move toward structure. That’s okay. The goal isn’t to eliminate energy, it’s to focus it. By creating systems that support long-term success, you give your team a stage to perform at their best.
You do not need to dull your edge or slow things down. You need to build a system where your best people can do their best work, together. Build the foundation now, so your team can grow with intention, not just urgency. Trading the adrenaline of chaos for the clarity of momentum might feel less exciting at first, but structure is not where the magic ends, it’s where scaling toward success begins.
Wishing everyone a great weekend,
-Eric.
This message translates to other areas of the founder's lives. A startup founder will work around the clock to bring a new idea to market it may take it's toll on relationships, health (physical and mental), spiritual and financial.
When one area begins running on low or empty it will begin to pull resources and energy from other areas which is a dangerous place to be.... Chaos for sure.
What suggestions do you have for this scenario?
Josh Wilson
The Investor Relations Podcast