Launching your tech startup is an exciting adventure that most often begins with one or two individuals or a small group of impassioned entrepreneurs with a clear vision.
At the beginning of your enterprise, you might be able to keep things running on a limited scale and budget. It makes sense to invest as much of your budget and other sources into your product, service, or mission as possible.
But when the time comes, you need to bring in talented professionals to help your business grow to the next level and achieve your organizational goals. And competing with Big Tech or other major industry players isn’t always easy. By hiring new employees, you join the ranks of the small businesses that have added more than 12.9 million jobs in the last 25 years, translating to about two-thirds of the jobs added to the U.S. economy.
Let’s take a look at why you need to build your startup team and the best strategies to do so effectively, efficiently, and affordably.
Why you need team members for your startup
The obvious answer to this is that you need support in fulfilling your startup’s mission, but there are several other reasons you need to expand your team.
Here are some reasons to expand your startup’s team:
- Adds Team Members with Specific Expertise. As your startup’s founder, you likely have great expertise in certain areas related to your enterprise. However, you will eventually need individuals with specific expertise, such as payroll, human resource management, marketing, sales, and accounting. Hiring individuals who have specialized education and experience in these areas already have shorthand knowledge and can do the work more quickly and efficiently than you and your fellow founders can. It also allows you to focus on your core competencies and ensure quality, productivity, and the achievement of organizational goals.
- Increases Productivity. Once you hire your team members, and everyone is in place and knows their responsibilities, tasks can be delegated more efficiently to the respective areas. Again, this gives you the chance to work on strategic decision-making and high-impact activities that can lead to more overall organizational activity and productivity.
- Spurs Collaboration and Innovation. The right team members foster collaboration and brainstorming that frequently leads to innovative ideas and solutions. Together, you and your collective can generate unprecedented breakthroughs that were not previously possible with a single founder or a small team. New individuals offer a fresh perspective to support and challenge your vision in meaningful ways.
- Allows You to Share Responsibility and Commitment with Other Professionals. It can be lonely trying to bring your vision to life. When you hire team members who share your startup’s vision, they share responsibility for its success while providing invaluable support.
- Provides You with Greater Access to Funding. Investors and venture capitalists look favorably on startups that employ strong teams with diverse expertise, knowledge, and skills. With a capable team, you will offer more confidence in the startup’s ability to fulfill its vision.
- Promotes Adaptability and Resilience. Adaptability is vitally important for startups since challenges, such as losing an investor, can come up unexpectedly. With a strong startup team, you can join forces and rely on varied experiences and problem-solving abilities to weather and overcome challenges.
- Allows Your Startup to Scale and Grow. As your startup begins to grow and gain traction in your industry, you will need to scale your operations accordingly. Your well-structured team will allow for smoother growth while providing the resources you need to continue your expansion into new markets and empower you to take advantage of any emerging opportunities.
- Additional Benefits. Finally, you can also enjoy the additional networking and partnerships, work-life balance, and complementary strengths that come with bringing in new team members.
When to start recruiting for a startup
You should consider certain variables when you or your IT staffing partners start recruiting. Here are a few things to consider as you launch your hiring strategy:
- Make sure you have determined your core business.
- Understand the expertise you need in the short- and long-term.
- Determine whether human capital is the right way to grow at this moment.
- Decide on a comfortable budget for hiring the talent your tech startup needs.
Do you need funding before you hire?
Only you’ll know the answer here for sure. You might not currently have the budget to hire, despite your startup’s upward trajectory. That doesn’t mean you don’t need new team members. However, there are some options if you’re in need of help but don’t have outside funding secured just yet:
- Bootstrapping, using your own capital
- Providing sweat equity in the form of a stake in your enterprise
- Enlisting skilled contractors and freelancers to fill the gaps
- Seeking out assistance from investors
- Applying for grants related to your industry or endeavor
Start hiring your first team members
Once you have decided to hire your first team members, you should develop a strategy that feels comfortable for you and the other founders. Here are some ideas to help you get started.
Define your startup’s staffing needs
Start with a solid understanding of your current needs. Identify the key roles and positions that will help you move through your early and growth phases. Outline the required skills, education, and expertise desired for each role to help clarify who the right candidates are and how to attract them to your endeavor.
Create a job description that Catches Their Attention
Similar to any other business seeking new professionals, you need to create a compelling job description that outlines the objectives and responsibilities of the position. Clearly share your startup’s vision and mission to help you attract like-minded professionals.
Leverage your network
Reach out to your professional and personal contacts for possible referrals. People in your network may know professionals who align perfectly with your startup’s requirements and, as a bonus, may share your vision. You may also reach out to industry communities and attend industry-related events to expand your reach to find potential hires.
Conduct a rigorous interview process
Develop a thorough interview process that assesses candidates’ technical skills and cultural fit. Additionally, prescreen applicants to narrow down the pool. Involve additional founders and key team members to gain different perspectives.
Offer competitive compensation and perks
Although you may be working with a limited budget, work to find a competitive compensation package to attract the best talent. You can even consider providing early staff perks such as long-term incentives, stock options, flexible hours, remote work, and performance bonuses.
The importance of onboarding
The onboarding phase is a crucial time for managers where you can set up your new team members for long-term success, helping them integrate into your company culture. Provide support and mentorship during this early phase, welcoming open communication and feedback.
Get the support you need when hiring your first startup team members.
We understand the task of hiring your first team members can feel challenging. Our Insight Global team is here to offer our support. Start exploring our talent page to see if you find a perfect fit for your startup’s marketing, accounting, administrative, or IT staffing needs.
Contact us to let us know how we can help you build your ideal startup team.