

Ask HN: Logistics of Hiring for a Startup - ericstanlon

What tips/suggestions would you offer when it comes to the logistics of hiring for a startup? Do you offer a salary or hire on a contract basis initially? What about equity - how much, how to calculate? Health plans? Benefits? What about setting up payroll? HR?<p>Basically, all the articles on hiring I've come across so far have talked about things to look for in a potential hire, but I'm looking for info on the overall logistics that go into bringing a new person on board. So all you experienced startup founders, please list your tips here:
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JangoSteve
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>

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.

