All hubs

Hiring

Hiring at a startup — the first five seats and beyond

Hiring is the single highest-impact decision a founder makes after picking the business. Most early-stage hiring is bad — driven by exhaustion, undefined roles, weak interviewing — and the cost of one bad early hire is 6+ months of dragging the company sideways. This hub gives you a defensible framework: when to hire, who to hire first, how to interview using scorecards rather than gut, and how to think about contractor vs employee.

Last updated May 21, 2026

Who this is for

Founders making their first hires, or planning the next five, and trying not to make the mistakes everyone else made.

What you'll learn

  • The first 5 hires by stage and business shape
  • Scorecard-based hiring vs gut hiring (and why scorecards win)
  • Contractor vs full-time — the actual decision framework
  • What NOT to outsource as a small startup
  • How to know when you should hire (and when you shouldn't)
Use the hiring scorecard template

First 5 hires by stage

Don't copy the org chart of a bigger company. The first five seats depend on the founder skill mix and the business shape.

Solo technical founder building SaaS — first 5: (1) hands-on engineer, (2) customer-led marketer/content lead, (3) head-of-sales-shaped operator, (4) second engineer, (5) customer success / support.

Two-person team building services-shaped SaaS — first 5: (1) account executive, (2) implementation lead, (3) second engineer, (4) marketer, (5) ops coordinator.

Solo non-technical founder — first 5: (1) technical co-founder (this is hiring #0, not hiring #1), (2) early engineer, (3) yourself in sales until $1M ARR, (4) content/marketing, (5) success/support.

Common pattern across all of them: sales-shaped person within first 3 hires. Marketing-only first hires usually under-perform because marketing without a sales-feedback loop produces volume without revenue.

Scorecard-based hiring

Write the scorecard before the first interview. Same idea as the Hiring Scorecard template: mission, 3-5 outcomes, top-3 competencies, disqualifiers.

The pre-scorecard error: "we'll know it when we see it." This produces inconsistent hiring, lots of false-positive senior hires (impressive talkers who can't deliver), and false-negative junior hires (great executors who present poorly).

How to score consistently:

  1. Every interviewer writes the candidate's score privately BEFORE the debrief
  2. Debrief discusses scores, not feelings
  3. Reference checks verify specific outcomes (not "what's X like to work with")
  4. Hire only when ≥2 interviewers score 4+ on the top-3 competencies

The 90-day plan goes in the offer letter. What outcomes are expected by month 3, 6, 12. Mutual contract — they know what to deliver; you know what you're paying for.

Contractor vs FT — and what not to outsource

Contract when:

  • The work is project-shaped (one website redesign, a 6-week build, an audit)
  • You don't yet know if the role is full-time
  • You need a specific senior skill 1 day a week that you can't afford full-time (fractional CFO, design lead, GTM advisor)

Hire FT when:

  • The work is ongoing and core to your edge
  • You need the person to absorb deep context that contractors won't
  • You'd be devastated if a competitor hired them

What you almost never want to outsource pre-Series-A:

  • Core product engineering — you'll lose the institutional knowledge
  • Sales (early) — founders should own sales until messaging is dialled; outsourcing produces calls that don't close
  • Customer success — early support is product research disguised as cost
  • Founder-led work — the things that change the company's direction

What's safe to outsource early:

  • Bookkeeping, payroll, tax filings
  • Specific design projects
  • Video editing, post-production
  • Specific paid-acquisition campaigns once channels are validated

Step-by-step action plan

Do these, in order

  1. 1Write the scorecard for your next role before sourcing one candidate
  2. 2Decide contractor vs FT for that role using the framework above
  3. 3Source 20-30 candidates; interview 8-10; offer paid trial to top 2
  4. 4Make sure the offer letter contains the 90-day outcome plan
  5. 5Set up monthly 1:1s; don't surprise anyone at performance time

Frequently asked questions

How much equity should the first hire get?
Range is wide. Early-engineer #1 at pre-seed: 0.5%-2% (cliff-vesting, 4 years). Senior leader hire at seed: 0.5%-1.5%. Below that you're not really paying with equity; above that you've miscounted founders.
Should I hire remote or in person?
Depends on team and stage. Pre-PMF: in-person/hybrid usually wins because the iteration speed matters more than the talent pool. Post-PMF: remote opens the talent pool but needs deliberate operating cadences to keep the company aligned.
How long should the interview process be?
Total wall-clock time: 2-3 weeks. Total candidate time investment: 4-8 hours including a practical exercise. Shorter and you miss signal; longer and the best candidates accept other offers.
What if I can't tell whether the candidate is good?
Pay them to do a paid 1-2 week trial on a real (but bounded) project. Costs $2-5k; saves the $30-60k of a bad hire. Both sides learn whether to commit.

Related templates

Related courses

Related hubs