How to Hire Your First Employees

Navigate the transition from founders-only to your first hires. Learn when to hire, what to look for, and how to compete for talent as a small startup.

Advanced
4 minutes read
6 steps
1

Know When to Hire

Hire when you have more work than founders can handle, revenue or funding to support salaries, and clear role definitions. Don't hire to feel like a 'real company.'

Pro Tip
The bar for your first 10 hires should be exceptionally high—they shape your culture.
Related AI Agent: Team Architect
2

Define the Role Clearly

Write out specific responsibilities, required skills, and success metrics. Be honest about what the job actually involves at a startup—it's messy and requires wearing multiple hats.

Pro Tip
Your first hires should be generalists who can grow into specialists.
Related AI Agent: Team Architect
3

Source Candidates Creatively

Early-stage hires rarely come from job boards. Tap your network, ask for referrals, recruit from communities, and look for people already interested in your space or product.

Pro Tip
Your first employees should believe in your mission. Passion compensates for startup risk.
Related AI Agent: Team Architect
4

Structure Compensation Fairly

Early employees often take below-market salary plus equity. Be transparent about your stage and finances. Standard early-stage equity ranges from 0.5-2% for first employees, with 4-year vesting.

Pro Tip
Explain the equity clearly—many candidates don't understand startup compensation.
Related AI Agent: Team Architect
5

Evaluate for Startup Fit

Look for: comfort with ambiguity, self-direction, resourcefulness, and culture fit. Past startup experience helps but isn't required. Test with real work when possible.

Pro Tip
Ask: 'Tell me about a time you did something without being asked.' Startups need self-starters.
Related AI Agent: Team Architect
6

Onboard Thoughtfully

Even at a tiny startup, have a basic onboarding plan. Explain context, introduce them to customers, pair them with a founder. The first 90 days determine if the hire succeeds.

Pro Tip
Early employees should talk to customers in their first week. Customer obsession starts immediately.
Related AI Agent: Team Architect

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