
Ask HN: Best ways of letting someone go in an early stage startup? - zurvania
I&#x27;m in a 1 man startup (not by design - cofounder left) and I have been struggling managing everything by myself.<p>I was introduced to my current contractor through a friend, so I thought she was vetted. Her background is product management. For the most part she is better than I am at picking up the phone and calling. But overall my gut tells me she can&#x27;t really execute and can only delegate - typical of middle management.<p>She wants to come on full time. Her expectations are that the compensation package meets industry levels (self proclaimed $225k). I told her this is not possible. 1% equity and a salary at the most $100k is the most I&#x27;d be willing (assuming I find anything for her to do). But she wants 20% equity.<p>Any recommendations on how to handle this situation, particularly on how to let her go.
======
jmcminis
Be direct, honest, and compassionate. They are good at something, but not the
thing you need most now. Explain that to them, let them go, look for someone
else.

Don’t forget that this person is a part of your network and always will be.
They might be a good fit later. Someone they know might be a good fit.

~~~
troydavis
Good advice. Also, if OP’s statement “my gut tells me she can't really execute
and can only delegate” is accurate, it’s not about compensation. Given that,
don’t bring up compensation at all.

~~~
fxfan
How does op save face now that he has made it about compensation?

------
davismwfl
Rule number one, you already have doubts about her, so it is a no on hiring
her. If you are by yourself, you do not hire anyone who isn't a 100% yes in
your own head. If you compromise, even at $100k and 1% you will be kicking
yourself in 6 months when your gut instinct was right. Find someone else who
is realistic in their needs and with what the company needs. When you have 3-4
people interviewing someone and 1 person is a soft no, then it should be up to
the team, if anyone is a hard no it is a no period.

While you are finding the new person, work with her to see if you can find a
path forward, or if nothing else she helps offload you while you are hiring.

------
anoncoward111
Tell her that I will do all of the tasks she's capable of doing (and more) for
45k. And that won't even include delegation.

It's a cold and competitive world out there. Sole proprietors can't afford
250k, let alone 100k.

Oracle profits billions per year and routinely lays off people making around
70k. So clearly even big corps don't have an appetite for random salaries on
the payroll.

------
heyjudy
She needs a full- or part-time job to keep her going. You probably need a
couple of part-timers who would work for little money and 1%. Maybe even offer
another .5% if they're willing to work without salary. That way, you're not
taking on employees too soon (usually the biggest p&l item, by far), someone
else can pay their benefits and they'll be less survival-stressed. In those
early days, you need to every penny used efficiently to keep executing and
stay alive.

------
user13243458
Just tell her you cant afford it. But btw, you'll never get someone who can
make 225k to work for those prices.

------
segmondy
If you're hiring remotely for part time work, reach out. Email is in profile.

------
charlesdm
There likely are better ways to spend $100k.

------
Cypher
tell them it was never going to work.

