
Why Too Much Informality Hurts Long-Term Scale
Jun 20
3 min read
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What helps you start can quietly sabotage your ability to grow.
A business owner once shared:
“We were five people doing everything. No roles, no job descriptions—just hustle. It worked... until it didn’t.”
Another said:
“I used to approve vendor payments on WhatsApp. Now, with 20 people and 3 locations, things are slipping—and I’m firefighting.”
Welcome to the growing pain of informality.

In the early days, informality feels efficient.
Decisions are quick
Communication is fluid
Everyone does everything
But as your business scales, the very same informality turns into:
Confusion
Delays
Founder bottlenecks
Burnout
Let’s break down why informality feels helpful at first—and why it becomes the hidden enemy of sustainable scale.
Step 1: Informality Is an Advantage—Up to a Point
In the startup stage, informality works because:
Teams are small
Communication is direct
Roles are flexible
Trust levels are high
You move fast because you don’t need permission, processes, or paperwork.
But this only works until volume, complexity, or people count increases.
Beyond that point, what was once agile becomes fragile.
Step 2: Signs That Informality Is Hurting You Now
✅ Decisions get delayed unless the founder intervenes
✅ Tasks fall through the cracks—because “someone thought someone else was doing it”
✅ Approvals are inconsistent or undocumented
✅ New hires are confused about expectations
✅ Vendor or client issues take longer to resolve
These aren’t people problems.
They’re structure problems.
Step 3: Why Informality Blocks Scale
🔁 No role clarity → accountability diffuses
📦 No process documentation → onboarding is slow and error-prone
💬 No structured communication → internal loops get lost
💸 No financial discipline → spending happens by instinct, not policy
🧠 No delegation frameworks → everything comes back to the founder
You can’t scale a business that only runs when you’re watching it.
Step 4: Structure Doesn’t Mean Bureaucracy
Many founders avoid formality because they fear:
“We’ll become corporate.” “Things will slow down.” “People will feel controlled.”
But structure ≠ red tape.
Structure =
Clear roles
Documented processes
Transparent communication loops
Repeatable systems
These aren’t constraints. They’re freedom enablers.
Step 5: Where to Formalize First (Without Killing Speed)
Start small:
Area | Informal Today | Formal Next Step |
Payments | WhatsApp approval | Google Form with limits + email trail |
Hiring | Gut feel + referrals | Basic JD + 2-step interview + trial task |
Onboarding | Verbal brief | Checklist + 1-pager SOP |
Team roles | “Everyone helps” | Defined outcomes per role |
Meetings | Ad hoc, founder-led | Weekly check-in with agenda + notes |
Structure lets teams operate independently, so the founder can think strategically—not constantly intervene.
Step 6: Review Structure Every 6–12 Months
As you grow:
What worked at 5 people won’t work at 25
What worked at ₹50L revenue won’t work at ₹5Cr
New hires need clarity, not chaos
Every 6–12 months:
Review systems
Upgrade what’s not scaling
Ask: “Where is informality creating friction?”
This turns structure into a living asset—not a one-time exercise.
TL;DR – Too Long; Didn’t Read
Informality works in early stages—but breaks when team size or business complexity increases.
Signs of trouble: delays, founder bottlenecks, onboarding confusion, approval chaos.
Structure doesn’t mean slow—it means scalable.
Start by formalizing payments, roles, communication, and onboarding.
Review systems every 6–12 months and upgrade gradually.
You don’t need to turn your business into a corporate giant.
But you do need systems that work even when you’re offline.
Because freedom doesn't come from being informal.
It comes from building a business that doesn’t collapse without you.
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