Scaling your business: Who to hire and when to hire them
We are all about partnering up with disruptive scale-ups, and getting them to the next level by helping them hire a team of all stars: the leaders that will help scale the product.
In order to do this, we don't tend to work for these companies, but we work together with them to get to this stage. All we need is for our partners to let go of the fear of hiring these leaders.
At SaaStock, Jos White at Notion Capital talked about some of the delusions of hiring:
1. There can be some discomfort around the costs associated with hiring leaders.
It is true, higher positions will probably cost you more in terms of their monthly wages, but it is a false saving if you think that hiring smaller will help you save more in the long run.
If you hire a really great person, the value that they will create is so much higher than the cost of their package. Plus, you won't have to replace them, or the members of the team, as they will build the team right from the get-go.
2. Companies are afraid it will change their culture.
The idea of having a company family is something that many organisations value within their culture. This idea, however, often gets them scared to expand, leaving them with a feeling that it will dilute everything they stand for, and how they should be hiring from within instead. At One. however, we will help you hire the right person, who really understands the culture, what makes you successful, and how you want to behave in the company.
It should not undermine, but enrich your culture. They will be the fibers that will add to your culture.
3. They believe they may not be at the right stage to be hiring big.
When the business is still fairly small, companies often get caught up in thinking they are not yet ready to attract a world class person, but instead hire two more smaller team members.
White believes that for scale-ups particularly, you are selling someone in on a vision. That it is better to attract someone when the company is really small. Leaders that are willing to go a step down on their pay, will typically really believe in your vision and the value that you are creating. At One. we help you with the hiring of these leaders. We believe in the vision of our partners, and make sure the candidates that we suggest do too.
4. They like to stay in control.
Most people, particularly businesses, tend to have a natural bias towards control. They like to keep the reigns. and stay close to every aspect of the business. People that come between them and the product are seen as a threat.
At One. we believe in specialists. Always hire people that are better than you are. You may have tons of experience, but it is not very likely that you have had the experience to get every function of the business up and running. Your span of control has to get smaller in order to add extra knowledge to the leadership team. We believe in building a really strong team around you who believe in your vision and product.
The biggest roadblock is that, although the average tech company spends about 78% of their spend on people, they don't spend 78% of their best time on hiring the best people. And that is why we would love to take work of your hands so that you can focus your time elsewhere, and we can focus on building you an all star team.
If you're still not convinced by the above, maybe this short summary on Maddy Cross' data deep dive into Unicorns will:
• Unicorns add six times as many leaders on average;
• They have greater diversity on their leadership teams in terms of years prior experience;
• They hire more leaders into the Sales function than any other;
• Over half of leaders in Unicorns worked previously at a VC backed listed company, but only a third of the control group had. This is exactly what we at One. go by: Good people know good people. We have hired for leadership positions for our partners that have then gone on to hire other great leaders to work with, it's a domino effect;
• Every Unicorn had someone on the leadership team with an Undergraduate degree from a Top 50 University.
The full Notion Capital report will be published in November.
But what it comes down to is this:
Don't be afraid to hire leaders. Stop wrestling with costs, culture, stage and control. Trust in others to bring your company to the next stage and you will skyrocket.
If you are ready to grow your team, but you are not sure how to go about hiring the leaders that will not cost, but benefit you. That is exactly our sweetspot, so get in touch with us if you would like to find out more.