When you're building a team from scratch, cash determines whether you hire executives first or start with junior staff. Without cash, you rack up managerial debt by hiring bottom-up and adding leaders later. With strong cash flow, you can afford executives early to build their own teams.
Here's how to build a team from scratch. So a lot of people struggle with the decision between, do I hire executives first or do I hire from the bottom up first? And it really comes down to one thing, which is cash. Do you have cash flow and sufficient cash reserves? If in the short term you don't have cash, then what you're basically gonna have to do is sacrifice by building from the bottom up and knowing that you're accumulating managerial debt rather than actual debt. On the other side, if you do have good cash flow, then you can hire executives and then they can hire from their teams because you don't have to worry about the money.
