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Were start-ups squeezed by hiring in 2004-2007? Joining a pre-funding start-up is a huge decision which takes dedication, passion for and expertise in the comp
by strlen 17y ago
Were start-ups squeezed by hiring in 2004-2007?
Joining a pre-funding start-up is a huge decision which takes dedication, passion for and expertise in the company's focus. It's a lot closer to starting a company yourself than working for Google. Salary is not the deciding factor, engineers considering such a decision are very specific in what they're looking for. From the company's point of view, first non-founding engineer is an employee that can make or break a company and set the engineering culture. It's a mistake to take someone who's only there because he had nowhere else to go: the sort of people you want for that position are confident that they could get hired elsewhere, even in a recession.
On the other hand, funded early-on start-ups (i.e., post series A, but pre-revenue/follow-on funding) can afford to pay market salaries, unless they're hiring "warm bodies" which is again a mistake. The big way to save is by hiring less engineers, not by paying engineers less. The way to make do with less engineers is to go for quality instead of quantity: you're always going to be paying top dollar for top talent.
- techiferous 17y ago"The big way to save is by hiring less engineers" The big way to save is by hiring less business people. I've come to the realization that in today's startup climate, developers often add more value than business people, because a skilled developer, if interested and motivated, is able to eventually pick up the business side of things pretty well. I'm finding this a wonderful economic climate for a single technical founder to bootstrap a startup (or two technical cofounders).
- strlen 17y agoGood catch, I'd argue non-technical people should be as few as possible. The big way to save is by hiring less in general.
- techiferous 17y agoOh, I also forgot to say that you made some really good points.
- pw0ncakes 17y agoBusiness people are valuable if they're well-connected and have strong reputations (and if they'll employ these resources in the interests of the founders; sometimes VC bring-ons with this profile can be formidable enemies). It's not just the experience that's necessary, but also the gravitas that comes with a strong track record. 28-year-old MBAs without connections and whose work experience is limited to management consulting or I-banking are generally not desirable for a startup; they literally have nothing to offer.
- techiferous 17y agoFor certain types of products, you don't need any business connections. A well-rounded technical founder working on a product on the side has practically no costs. With enough market savvy and a good business model, this developer can grow the product into a profitable business without taking on outside investment. If later on there is a need for outside investment, my guess is that the profitability of the business works more in the founder's favor than the connections of a business cofounder. Besides, if the technical founder wants connections, he/she can get them. It's not that hard to network.