When to hire, who, and why. Bottleneck analysis, first 3 hires with job profiles, compensation benchmarking, cultural values with behavioral examples, interview question bank. Warns against mistakes like hiring VP Sales with 10 customers.
Hiring too early kills startups. Hiring too late leaves money on the table. This is the analysis to do it right.
Purpose: Understand current state and identify hiring needs
Exit criteria: Clear visibility into team capacity vs. demand
You're going to identify what's actually constraining your growth (people or process), then figure out who to hire first and why. Hiring the wrong person early is catastrophic. Hiring late when you have 50 customers is also wasteful. This skill gets you to hire exactly right.
Key principle: Early hires make or break a startup. Hire slow, hire right. A bad early hire costs 10x more than waiting 3 months for the right person.
Re-ground: We're building your hiring plan. Phase 1 is: what's actually constraining you?
Simplify: Is growth limited by engineering (can't ship features), sales (have demand but can't close), customer support (users churning from bad service), or something else? Identify the ONE thing that would unlock the most growth if fixed.
Recommend: What's the main thing stopping you from growing faster?
Use AskUserQuestion to ask:
Options:
A) Engineering — we have demand but can't ship features fast enough B) Sales — we have users but can't close deals or land enterprise customers C) Customer support — we're losing customers due to bad experience D) Product/Design — users don't understand the product or find value quickly E) Marketing/Growth — we can't acquire customers F) Not sure — multiple things feel bottlenecked
After user answers, ask: How do you know this is the bottleneck? What's the evidence?
Re-ground: Bottleneck identified. Now: is it a people problem or process problem?
Simplify: "We can't ship fast" might be broken architecture (process) not broken team (people). "We can't close deals" might be broken sales process (process) not broken sales person (people). Hiring won't solve broken systems.
Recommend: If we fixed the PROCESS, would the bottleneck disappear?
Use AskUserQuestion to ask:
Options:
A) Process problem — we should fix systems/architecture first B) People problem — we need more hands/expertise C) Both — we need process improvement AND headcount D) Not sure
If A: "Don't hire yet. Fix the system first. Hiring someone into broken process just amplifies the problem."
If C: "OK. What's the process problem? Fix that first (3 weeks). Then hire to scale the fixed process."
Re-ground: People vs process assessed. Now: what can the founder do?
Simplify: Before hiring, be honest: can YOU do this thing? If you're the only engineer and the bottleneck is engineering, maybe you're just overworked and need to prioritize differently. Or maybe you genuinely can't scale.
Recommend: Can you personally do the bottleneck work if you focus on it?
Use AskUserQuestion to ask:
Options:
A) Yes, I'm just overloaded — I should prioritize this first B) No, I lack the expertise — I need to hire someone with this skill C) I can do it but it's not the best use of my time anymore D) I don't know if I can do it
If A: "Then don't hire. Reorganize your priorities. Hiring is often a distraction from real work."
If C: "Right answer. You're scaling past founder-solo. But let's be sure you have >50 customers before you hire."
Re-ground: Founder capacity assessed. Now: do you have enough traction to hire?
Simplify: Basic thresholds:
Recommend: Where do you stand?
Use AskUserQuestion to ask:
Options:
A) I have 50+ customers and $5K+ MRR — I can hire #1 B) I have 10-50 customers and $1-5K MRR — I should wait C) I have <10 customers — don't hire yet, focus on product/market fit D) I'm pre-revenue — don't hire yet
If B or C: "Keep grinding. Hire when you hit the threshold. Premature hiring burns runway without proving the business works."
Re-ground: Thresholds checked. Phase 2 is: who should hire #1 be?
Simplify: Most first hires are engineers (if you're not technical) or sales (if you have product-market fit). Pick based on: what's the most painful bottleneck? What do you NOT want to do anymore?
Recommend: Based on your bottleneck, who should hire #1 be?
Use AskUserQuestion to ask:
Options:
A) Engineer — we need to ship faster B) Sales/BD — we have demand, need someone to close C) Customer Success — we're losing customers, need onboarding/support D) Product Manager — we need strategy/roadmap owner E) Not sure
After user chooses, ask: Why this person instead of another role? What changes when we hire them?
Re-ground: Role chosen. Now: define the job profile.
Simplify: This isn't "any engineer." Specific profile: experience level, background, must-haves.
For Hire #1 Engineer:
Recommend: Does this profile match what you need?
Use AskUserQuestion to ask:
Options:
A) Yes, I need a senior full-stack or backend engineer B) I need someone more specialized (ML, infrastructure, etc.) C) I need a senior engineer who can lead product decisions D) I'm not sure on the profile
Re-ground: If sales is hire #1. Now: define it.
Simplify: This is NOT a VP of Sales. You have 50 customers. You need an Account Executive who closes deals with their own hands and manages themselves.
For Hire #1 Sales:
Recommend: Is this the profile you need?
Use AskUserQuestion to ask:
Options:
A) Yes, I need someone to close deals for us B) I need someone more strategic (board-level sales) C) I need inside sales to manage partnerships/channel D) Not sure
If B: "Too early. Hire an AE first. Board-level sales comes at 100+ customers."
Re-ground: If CS or product is hire #1. Now: define it.
For Customer Success:
For Product Manager:
Recommend: Which profile for hire #1?
Use AskUserQuestion to ask:
Options:
A) Customer Success — we're losing customers to bad experience B) Product Manager — our roadmap is confusing/unfocused C) Neither — engineer or sales first D) Not sure
If B: "Too early. Hire #1 or #2 should be engineer/sales. PM can wait until 200+ customers."
Re-ground: Hire #1 profile set. Phase 3 is: when does hire #2 happen?
Simplify: Usually 3-6 months after hire #1. After hire #1 ships features/closes deals/improves customer happiness, you'll feel the next bottleneck.
Recommend: When should you start recruiting hire #2?
Use AskUserQuestion to ask:
Options:
A) I'll hire #2 in 3 months (when hire #1 is ramped) B) I'll wait 6 months and see how traction grows C) I'll hire #2 as soon as hire #1 is onboarded D) I'll hire #1 and then reassess
If C: "Caution. Hire #1 needs 3 months to ramp. Don't split focus until they're productive."
Re-ground: Timeline set. Now: forecast hire #2.
Simplify: If hire #1 is engineer, hire #2 is likely sales. If hire #1 is sales, hire #2 is likely engineer or CS.
Recommend: What do you think hire #2 will be?
Use AskUserQuestion to ask:
Options:
A) Sales (if #1 was engineer) B) Engineer (if #1 was sales) C) CS (if we're growing customers fast) D) Not sure yet, depends on growth
If D: "Right answer. Reassess in 3 months based on what's still bottlenecked. Could be sales, engineer, or CS."
Re-ground: Hire #2 forecasted. Phase 4 is: compensation.
Simplify: Equity is a one-way trap. Give too little and you can't attract talent. Give too much and you dilute yourself. Rules:
Recommend: Are your salary and equity offers competitive?
Use AskUserQuestion to ask:
Options:
A) Yes, I've researched market rates and adjust for my location B) I'm guessing based on startup resources I've read C) I don't know what to offer D) I can only offer low salary but high equity
If C: Use this guide:
| Role | Startup stage | Salary | Equity | Notes |
|---|---|---|---|---|
| Engineer | Pre-seed/Seed | $130-160K | 0.5-1% | 1st-2nd engineer |
| Engineer | Seed | $150-180K | 0.25-0.5% | 3rd+ engineer |
| Sales | Seed | $80-120K | 0.25-0.5% + 10% commission | 1st sales |
| CS/Support | Seed | $70-100K | 0.15-0.25% | 1st CS |
| PM | Seed | $120-150K | 0.25-0.5% | 1st PM |
(SF market; adjust down 20-30% for non-tech hubs)
If D: "Problem. Pay-to-play salary expectations exist. If you can't afford $100K base, you're hiring someone desperate or junior. Be prepared to mentor heavily."
Re-ground: Salary set. Now: equity.
Simplify: First engineer typically gets 0.5-1%. As you hire more, equity per new hire drops. This is normal.
Recommend: What's your total equity you'll give out before Series A?
Use AskUserQuestion to ask:
Options:
A) I've reserved 15-20% for employees B) I'm planning to give 20-30% C) I'm not sure how much to allocate D) I want to give more equity because I can't afford high salaries
If B or C: "15-20% is the sweet spot. Leaves room for Series A investors (typically 15-25%) and future employees."
Re-ground: Equity set. Phase 5 is: culture and hiring criteria.
Simplify: Don't list platitudes ("we value transparency"). Give behavioral examples. "Speed > Perfection means: launches feature with 80% design quality rather than waiting for perfection."
Recommend: What are 3-4 values you want your team to embody?
Use AskUserQuestion to ask:
Options:
A) I can define values with behavioral examples B) I have values but they're abstract/vague C) I haven't thought about culture yet D) I want to focus on hiring skills only, not culture
If D: "Mistake. Culture fit is as important as skill fit. A brilliant engineer who's defensive about feedback will slow you down. Define culture first."
Re-ground: Values defined. Now: build interview questions.
Simplify: Ask questions that reveal real behavior, not polished answers. "Tell me about a time you shipped something you weren't proud of" beats "describe your biggest strength."
Recommend: Ready to build interview questions for hire #1?
Use AskUserQuestion to ask:
Options:
A) Yes, I have behavioral questions ready B) I have some questions but they're generic C) I need help designing the interview process D) I'll build this when I start recruiting
If C: Here's a template for engineers:
1. "Tell me about a product you shipped that you're proud of. What was your role? What would you do differently?"
2. "We have [X] paying customers. Our API response is [Yms]. Should we optimize? Why/why not?"
3. "Describe a time when you disagreed with your manager on technical approach. How was it resolved?"
4. "What's your biggest pet peeve about code/systems? Tell me about a time you fixed it."
5. "You see a customer complaint about performance. How do you prioritize this vs other work?"
Re-ground: Interview process set. Phase 6 is: what NOT to do.
Simplify: These mistakes are catastrophic early:
Recommend: Which of these are you at risk of?
Use AskUserQuestion to ask:
Options:
A) I'm planning to hire carefully based on these warnings B) I was considering some of these — glad for the warning C) I've already made some of these mistakes D) I don't recognize these patterns in my thinking
If C: "What happened? Let's talk about how to fix it. Can you pivot hire #1 to the right role?"
Re-ground: Mistakes noted. Phase 7 is: your hiring timeline.
Simplify: Give yourself 2-3 months to recruit. Don't hire fast; hire right. Post jobs → screen → interviews → references → offer. 8-12 weeks is realistic.
Recommend: When do you want to make your first hire?
Use AskUserQuestion to ask:
Options:
A) In 2-3 months (when I have recruiting process ready) B) ASAP (I need this person now) C) In 6+ months (I want more traction first) D) I don't know yet
If B: "Danger. Desperate hiring leads to bad hires. If you need someone NOW, you're already behind. Set up structured process even if timeline is tight."
Re-ground: Timeline set. Now: first 30 days after hire.
Simplify: Week 1: learn product/market. Week 2: first small project. Week 3: bigger independent project. Week 4: full productivity. Have this planned BEFORE you hire.
Recommend: What's your 30-day onboarding plan for hire #1?
Use AskUserQuestion to ask:
Options:
A) I have a detailed plan: Week 1: learn, Week 2-3: ship, Week 4: ramp up B) I have a rough idea C) I'll figure it out when they start D) I need help designing this
If C: "Bad idea. Unprepared onboarding kills good hires. They'll get frustrated by unclear goals. Plan this before you recruit."
Re-ground: All analysis done. Phase 8 is: generate HIRING-PLAN.md
Simplify: I'll compile everything: bottleneck analysis, hire #1/#2/#3 profiles with compensation, cultural values with behavioral examples, interview questions, red flags, onboarding plan.
Recommend: Ready to generate the hiring playbook?
Use AskUserQuestion to ask:
Options:
A) Yes, let's build it B) I want to refine a few sections first C) Just focus on hire #1 for now D) I need to gather more data
If founder says "just do it" or expresses impatience:
If founder's answers cover multiple questions:
Do you have >100 customers?
No → You don't need most hires yet. Focus on founder doing everything.
Yes → Is growth constrained by a specific function?
No → Build better systems first
Yes → Hire for that function
Why it fails:
Fix: Hire Account Executive or Sales person who sells AND manages themselves
Why it fails:
Fix: Hire PM when you have >500 customers or shipping becomes bottleneck
Why it fails:
Fix: Hire 1 strong senior engineer, not 2-3 juniors
Why it fails:
Fix: Full-time employee. If you can't afford it, don't hire yet.
Why it fails:
Fix: Hire best person regardless of friendship
By role and stage (SF/NYC - adjust down 20-30% for non-tech hubs):
| Role | Startup stage | Salary | Equity | Notes |
|---|---|---|---|---|
| Engineer | Pre-seed/Seed | $130-160K | 0.5-1% | 1st-2nd engineer |
| Engineer | Seed | $150-180K | 0.25-0.5% | 3rd+ engineer |
| Sales | Seed | $80-120K | 0.25-0.5% + 10% commission | 1st sales |
| CS/Support | Seed | $70-100K | 0.15-0.25% | 1st CS |
| PM | Seed | $120-150K | 0.25-0.5% | 1st PM (if you're not the PM) |
Equity rules:
For engineers:
For sales:
For CS:
For everyone:
# Hiring Plan
## Current State
- Revenue: $[X] MRR
- Customers: [X]
- Team: [You describe team: "2 co-founders, full-time"]
- Runway: [X months]
## Bottleneck Analysis
**Current constraint:** [What stops growth?]
- Evidence: [Metrics showing this is the bottleneck]
- Is it people or process? [People = hire, Process = fix it]
**Decision:** [Do we need to hire right now?]
## Hiring Timeline
**Next 90 days:** [Hire #1 or wait for more traction?]
**Months 4-6:** [Hire #2]
**Months 7-12:** [Hire #3]
[Alternative timeline if traction accelerates or decelerates]
## Hire #1: [Role]
**When:** [Trigger: MRR / customers / timeline]
**Why:** [Problem this person solves]
**Job Profile:**
- Title: [Exact title]
- Salary: $[X]
- Equity: [X]%
- Background: [Experience needed]
- Key traits: [What they must be good at]
**Interview process:**
1. [Phone screen topics]
2. [Technical/task evaluation]
3. [Culture fit interview]
4. [Reference calls]
## Hire #2: [Role]
[Same format]
## Hire #3: [Role]
[Same format]
## Compensation Summary
| Role | Salary | Equity | Rationale |
|------|--------|--------|-----------|
| [Hire #1] | $[X] | [X]% | [Why this person is worth it] |
| [Hire #2] | $[X] | [X]% | [Why this person is worth it] |
| [Hire #3] | $[X] | [X]% | [Why this person is worth it] |
## Cultural Values
[For each value: behavioral examples]
## Red Flags to Avoid
1. [Mistake 1]: [Why it kills startups]
2. [Mistake 2]: [Why it kills startups]
3. [Mistake 3]: [Why it kills startups]
## Interview Question Bank
[Organized by role]
## Onboarding Plan (First 30 days)
- Week 1: [What does new hire learn?]
- Week 2: [First shipping goal?]
- Week 3: [Independent project?]
- Week 4: [Full productivity?]
## Sign-off
Before hiring, answer:
- [ ] Is this person solving the real bottleneck?
- [ ] Do we have runway to afford them?
- [ ] Can we commit to mentoring/feedback?
- [ ] Will this person level up the team?
If no to any: Don't hire yet.
When you've finished:
Exit with: DONE | DONE_WITH_CONCERNS | BLOCKED | NEEDS_CONTEXT
Early hires make or break a startup. Hire slow, hire right. A bad early hire costs 10x more than waiting 3 months for the right person.