At the Bootstrappers’ Breakfast in San Francisco, the topic of hiring is brought up quite often. Below is a brief of some points that came up as well as my own thoughts.
Hiring the wrong person can be detrimental to your start-up
- Entrepreneurs need to spend adequate time to hire the right person. A lot of time can be lost rectifying mistakes of an unqualified person.
- Your first employee can be 25% to 30 % of your work force.
- They are often the face of your start-up and their ability to make customers happy and prospects eager to do business with you matters.
How do you find the right people
- Instead of spending a lot of time going out and finding the perfect person, let the perfect person find you
- Due to high unemployment at present, there is plenty of good talent available.
- Have a working interview, probationary period
- When people were hired for the start-up and given a little equity, their mentality towards the business and their performance was way better.
- You should consider putting the equity on hold during the probationary period (e.g. a vesting cliff) so that you don’t end up with a lot of ex-employees with equity.
- When hiring people, some scrutinize resumes, others feel that more than the resume, the thought process that people follow is very important. A lot of things can be learned on the job. Also essential is passion for your idea and for solving the problem.