There was an article recently posted on HN about how your type of business plays into the logistics of hiring called "Is Your Startup A Cash or Equity Business?

There was an article recently posted on HN about how your type of business plays into the logistics of hiring called "Is Your Startup A Cash or Equity Business?" with some good discussion. http://news.ycombinator.com/item?id=1589808 http://news.ycombinator.com/item?id=1589808 Concerning whether you should hire or contract, that depends on the kind of startup you have and what stage it's in. Being a contract developer among other things, I am naturally biased toward that route if it makes sense at akk for the project. But in my experience it doesn't make sense for most of the startups I've come across. If you are pre-revenue and not funded, then contracting makes no sense. If you are pre-revenue and funded, it makes a little sense, but not as much as bringing on a dev as a cofounder for equity (not just because you can better afford it, but because you need it and it helps to validate your concept to find someone willing to come aboard). So, when does contracting make sense? Typically if you have decent revenue and one of the following also applies: a) you need to prove an initial add-on concept for your business (e.g. a new feature or complementary software service/product) b) you are unsure of your future development needs beyond your immediate need. c) you are unsure of future revenues and/or company stability, in which case you need to stay as agile as possible. d) you need something to be developed and completed NOW. Of course, this criteria is not exhaustive or absolute, just some anecdotal guidelines.