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I'll never forget a call I got from a founder I'd worked with during the early days of his startup. Midway through 2020, flush with fresh funding, he'd declared his company "remote-first" and shut down their small San Francisco office. "We'll save on rent, hire globally, and people can work from anywhere," he told me.
At first, it seemed brilliant. He landed three talented engineers from Eastern Europe for a fraction of Bay Area salaries. His U.S. team loved skipping the commute. But by month six, the cracks started to show.
The European hires felt excluded from key decisions because meetings always happened on California time. Project timelines slipped because no one documented conversations happening in Slack. And new employees (who'd never met anyone in person) felt completely adrift. Over the next quarter, the company's employee turnover went from below 10% to nearly 30%. Investors started asking uncomfortable questions when delayed product launches and rising hiring costs began threatening the company's growth projections.
He told me, "I thought remote-first meant just letting people work from home. I didn't realize I needed to redesign the entire way we work."
That conversation stuck with me because it's a trap so many companies fall into: treating remote-first like a perk instead of a business model that requires intentional architecture.
If you're considering building or scaling a remote-first company, it's absolutely achievable. But it demands planning, systems, and a culture designed to thrive without walls.
In this guide, I'll share practical steps to help you build a remote-first company that doesn't just exist but scales and succeeds.
What Is a Remote-First Company?
A remote-first company is structured so that people can work effectively from anywhere, without relying on a physical office to stay productive or connected. Even if some employees occasionally gather in shared spaces, the company's core operations, communication practices, and culture are designed to work seamlessly across locations and time zones.
Running a business this way goes far beyond simply letting people work from home. It's a model that opens access to global talent, lowers costs tied to office space, and offers flexibility that's become a major draw for top employees. Companies that approach remote-first thoughtfully often find they can scale faster and compete more effectively in diverse markets.
But there's a real risk. Without deliberate systems for communication and culture-building, a remote-first setup can easily slip into misalignment and inconsistent performance.
From what I've seen, the crucial difference is intentional design. Remote-first companies deliberately create systems and norms for transparency, communication, and inclusion right from the start. In contrast, remote-allowed companies often try to layer remote work onto office-based practices without changing how decisions are made or how information flows, ending up with disengaged teams and lost momentum.
If you're planning to build or scale a remote-first company, keep reading. I'll share how to do it the right way and avoid the missteps that leave teams scattered and struggling.
Why Building Remote-First Is Harder Than You Think
There's a lot of hype about remote-first companies right now, and for good reason. Remote-first businesses can hire talent from anywhere; they are typically quite flexible and able to respond quickly to market changes, and their payrolls tend to be lower than those who hire exclusively in the U.S. or other "premium" regions.Â
Some of the world's most admired companies, like GitLab, Zapier, and Automattic, are proof that distributed teams can achieve incredible scale and innovation.
But in practice, building remote-first is far harder than many founders or executives expect. I've worked with leaders who assumed going remote-first was as simple as dropping an office lease and buying Zoom licenses. A few months later, they're battling miscommunication, eroding culture, and frustrated employees who feel invisible.
The core challenge is that remote-first isn't just a work policy. It's a new operating system for how a business runs. Everything changes: how you document decisions, onboard people, maintain accountability, and keep teams connected across time zones. Done right, it's a powerful advantage. Done wrong, it can quietly kill momentum and morale.
I'm convinced the companies that will win in the next decade are the ones that treat remote-first as a deliberate business model rather than an afterthought. They know it takes planning, systems, and a willingness to rethink how work happens. And they're willing to invest in getting it right from day one.
In the next sections, I'll show you how to build those systems and avoid the silent pitfalls that derail so many remote-first ambitions.
How to Build and Scale a Remote-First Company
Transitioning to (or launching) a remote-first company isn't just a shift in where people work. It's a fundamental redesign of how your business operates. Here's how to build the foundation and set yourself up for sustainable growth.
Laying the Foundations: Legal, Tech, and Policy Essentials
1. Get your legal structure right. If you plan to hire internationally, your corporate entity, tax setup, and employment contracts must account for cross-border regulations. Don't get caught off guard by unexpected tax obligations or employment liabilities because you assumed remote equals simple. It doesn't. Engage advisors early, especially if you're hiring in multiple countries.
2. Invest in your tech stack. Remote-first teams live and breathe through software. At a minimum, you'll need:
- Communication tools (Slack, Zoom, Teams)
- Project management (Asana, Jira, ClickUp)
- Documentation (Notion, Confluence, Google Docs)
- Secure file storage (Dropbox, Google Drive, OneDrive)
- Time zone management tools
Don't just pick tools. Define how you'll use them. Don't spend a fortune on software, only to discover no one knows where decisions are documented. Tools alone solve nothing without clear usage norms.
3. Set policies from day one. Remote-first companies thrive on clarity. Develop policies covering:
- Working hours and time zones
- Communication expectations
- Expense reimbursements
- Home office stipends
- Security and data protection
When everyone knows what's expected, trust and efficiency grow.
Building a High-Performance Remote Team
1. Rethink your hiring process. Hiring for remote roles means prioritizing self-starters, excellent written communication, and comfort with asynchronous work. I've had fantastic hires who looked perfect on paper but struggled in a remote setting because they needed constant feedback or in-person cues.
2. Onboard like your company depends on it. It does. Remote onboarding should include:
- Clear role expectations
- Buddy systems
- Written guides and videos
- Early small wins to build confidence
People who join remotely don't absorb culture by osmosis. You have to intentionally deliver it.
3. Measure performance differently. Micromanagement kills remote culture. Focus on results, not hours logged online. Good remote-first companies define outcomes clearly, check in regularly, and create transparent feedback loops.
Scaling Systems, Leadership, and Continuous Improvement
1. Systematize your workflows. As you grow, informal processes stop working. Document how work gets done, who owns decisions, and how information flows. One founder told me his biggest mistake was assuming his five-person team's Slack habits would scale to fifty. They didn't.
2. Develop remote-savvy leaders. Managing a remote team requires stronger communication skills, emotional intelligence, and the ability to lead through written channels. Invest in leadership training that emphasizes these skills.
3. Build feedback into your DNA. Remote-first companies can drift out of alignment quickly. Run regular surveys, hold retrospectives, and create channels for anonymous input. What you don't hear about can hurt you.
Key Considerations for a Successful Remote-First Model
Even with solid systems in place, running a remote-first company demands constant attention to human dynamics. These are the areas where I've seen remote-first businesses either thrive or quietly lose their edge.
Cultural Cohesion and Team Connection
Don't assume culture will "just happen." In an office, culture spreads through hallway conversations and shared routines. Remotely, none of that is automatic. You have to manufacture moments of connection. That might mean:
- Regular virtual social events
- Small-group coffee chats
- Dedicated Slack channels for hobbies and interests
- Annual in-person retreats
One founder I worked with built a thriving remote-first team partly because she scheduled random "pairings" each week. Two employees matched for a 15-minute casual chat. It seemed trivial, but people loved it, and relationships deepened across departments.
Furthermore, make your values visible. Remote teams need reminders of what your company stands for. Reinforce values in all-hands meetings, documentation, and onboarding materials. Otherwise, your culture can fragment into local micro-cultures that don't align.
Communication Strategies That Work
Master asynchronous communication. Remote-first companies can't rely on everyone being online at the same time. Asynchronous work is powerful. It lets people work when they're most productive. But it only works if:
- Information is documented clearly
- Decisions are recorded and accessible
- Expectations for response times are defined
I've seen teams save countless hours (and headaches) by switching to asynchronous updates for status reports instead of endless live calls.
Choose your tools (and norms) carefully. It's not just which apps you use, but how you use them. Define:
- What goes into Slack vs. email vs. documentation tools
- When video meetings are required
- How fast responses are expected
Without these norms, people either drown in notifications or miss critical information.
How to Avoid the Biggest Risks in Running a Remote-First Company
Compliance and Legal Pitfalls
Don't underestimate global complexity. Many founders assume hiring internationally is just a paperwork exercise. But I've seen companies suddenly hit with surprise tax bills or employment claims because they treated remote hiring like hiring in their home country. What seems simple, like engaging contractors, can quickly become a legal tangle if local laws view them as employees.
- Check local labor laws before hiring.
- Use employer-of-record services if you're not ready to set up entities in multiple countries.
- Budget for legal and tax advice. It's far cheaper than fixing mistakes later.
Data Security and Privacy
Remote work expands how and where sensitive data travels. When your team works from dozens of homes (and devices), it's easy to lose track of where files live or who's accessing what. I've seen startups shocked to learn customer data was sitting unencrypted on personal laptops because policies weren't clear.
- Implement strong device security policies.
- Require secure VPNs for all remote connections.
- Train employees regularly on phishing and cyber threats.
- Define who owns data stored locally on personal devices.
A single security breach can destroy customer confidence and damage your reputation. Sometimes, irreversibly.
Supporting Employee Well-Being
Remote work can feel isolating. Some employees thrive outside an office, while others struggle with loneliness or blurred boundaries between work and home.
I worked with a SaaS company that went remote and saw productivity spike, until company culture and performance started flagging. After conducting several exit interviews, we discovered people felt disconnected and invisible because no one had built in time for personal check-ins or team bonding. Even high performers felt like they were working in a vacuum, unsure if their contributions mattered or if they were growing in their roles.
With that in mind, check in on mental health regularly. Normalize conversations about workload, stress, and personal challenges. Encourage time off and model it at leadership levels. Remote-first should empower people, not leave them adrift.
Partner with Somewhere to Build Your Remote-First Team
Running a remote-first company means rethinking how you hire, onboard, and support your team, often across borders and time zones. It's not just about finding great people, but about building systems and staying compliant in dozens of different markets.
That's where Somewhere comes in. We help companies like yours hire top talent worldwide while navigating the legal, operational, and cultural complexities of remote work. Whether you're making your first global hire or scaling a distributed team, our expertise ensures you can grow confidently and avoid the costly missteps we've discussed here.
If you're ready to build or scale your remote-first team, reach out to the team at Somewhere. Fill out the contact form below, and let's make your remote-first vision a reality.
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