This blog about startup hiring was originally published in March 2020. All relevant statistics have been updated, and new research has been added as of November 2023.
Congratulations! Your business is now in motion, marking your entry into the thrilling startup world. As you embark on this journey, it's vital to build a team that will propel your vision forward. When selecting candidates, prioritize qualities like passion, trustworthiness, and, perhaps most significantly, adaptability.
Remember, the first few individuals you bring on board set the tone for the trajectory of your startup. With just a 10% success rate for startups each year, acing your recruiting efforts is crucial. Let's unveil the first hires that will propel your startup forward:DYK: Only 10% of #startups are successful each year? @IQTalent says these are the 5 early hires you’ll need to stay afloat
1. Product Manager
This person will be the team’s ‘go-to’ on all things related to your product. They create a landscape for product strategy, vision, and actual development. This hire is crucial early on so founders can focus on big-picture issues. Find a candidate that you can trust to pass these responsibilities onto so you can focus on high-level business strategy.
Here are some key points to consider when hiring a product manager:
- Experience in product strategy and development
- Strong understanding of market trends and customer needs
- Ability to align and collaborate with engineering and marketing teams
- Proven track record of driving product success
- Ability to think strategically and make data-driven decisions
- Familiarity with agile methodologies and product management frameworks
2. Chief Marketing Officer (CMO)
Your CMO plays a critical role in understanding how your buyers perceive your product or service. They give purpose to your offering, ensuring that it doesn't exist in isolation. To effectively communicate the necessity of your product, it is crucial to hire an experienced Marketing Officer with niche promotional skills.
As you navigate the challenges of product development and experience natural growing pains, these are the key factors to consider when hiring a CMO for your startup:
- Proven experience in marketing and promoting products in similar industries
- Strong understanding of buyer behavior and the ability to align marketing strategies accordingly
- Excellent communication and storytelling skills to effectively convey your vision to the target audience
- Expertise in community management to foster positive relationships with customers
- Ability to analyze market trends and identify new opportunities for growth
- Track record of successfully managing marketing budgets and delivering measurable results
3. Chief Financial Officer (CFO)
Although startups may consider outsourcing their accounting roles, hiring a CFO early on is imperative. Having someone on your team from the beginning who understands the financial aspect of your company is crucial. They will need an eye for detail to manage all aspects of a company's finances from the early stages.
Here are some key things to keep in mind when hiring a CFO for a startup:
- Experience and expertise in financial management and accounting
- Knowledge of startup funding and investment strategies
- Ability to develop and execute financial strategies aligned with business goals
- Familiarity with regulatory compliance and financial reporting
- Proven track record of financial leadership and success in previous roles
- Flexibility and adaptability to handle the dynamic nature of startups
4. Chief Technology Officer (CTO)
This individual specializes in tech development and plays a vital role in overseeing product engineering. While hiring freelance developers is possible, having an internal team member leading the tech development ensures the right direction for product development. The CTO should possess the skills to manage system integration, make tech-related decisions, and wear multiple hats in the early stages.
When hiring a CTO for a startup, here are some important factors to consider:
- Technical expertise and experience in relevant technologies
- Ability to drive innovation and align technology with business goals
- Proven track record of successfully scaling and growing technology infrastructure
- Excellent communication and collaboration skills
- Understanding of market trends and industry best practices
- Problem-solving mindset and adaptability to navigate challenges
5. Sales Manager
As soon as your tech is down pat, you’ll want to have a sales manager on your team. This team member will work alongside your CMO and CFO to focus on generating leads and, ultimately, bringing in money. The startups and small business owners who master sales from the get-go are going to be among that 10% that actually survive.
When hiring a sales manager for a startup, here are some key points to keep in mind:
- Proven track record of successful sales experience
- Knowledge of industry trends and market dynamics
- Understanding of customer needs and ability to build relationships
- Results-driven mindset with a focus on revenue generation
- Ability to collaborate effectively with cross-functional teams
- Creativity and problem-solving skills to overcome challenges
Once they create a solid sales deck that explains why you started the company in the first place and begin bringing in money, you can start hiring more, make every position more precise, and leverage candidates’ unique skills.You’ve created a product or service, got some level of your business started, and even started making a little money — it’s time to hire your first employees. These are @IQTalent’s suggestions for early #startup hires:
Startups often have limited cash flow and policies that ride tumultuous waters. Naturally, hiring for a company that’s going through rapid growth and figuring out its identity is sure to present unique recruiting challenges. Since startups likely can’t outbid larger, more established companies for talent, you’ll need to be creative and possibly leverage professional assistance.
IQTalent is experienced with jump-starting startup growth on a limited budget. We understand the unique struggles startups face to stay afloat in a tight labor market. It can be tough to let others take control of any aspect of your vision of your company. We pull back the curtain on recruiting, giving our partners all the candidate data we gather with an hourly model that can be ‘turned up or down’ whenever needed. Find out how we can help your startup today.