Knowing when to hire your first technical team member is not an easy task. Let’s see the Whens and Hows to help you make the best decision.

Whatever your niche is, it’s more than likely that you’ll need a technical team at some point.

It’s a big step. A step that can have a big impact on your startup’s journey.

How do you know when the time is right? How do you find the right person for your team? And what are the risks of hiring too early or too late?

Here are the key considerations and steps to take when making this pivotal move.

Too Early? Too Late?

While it won’t cost you your business, building a tech team too soon or too late can have a big impact.

Hiring too early

1- Financial pressure

Hire too early, and you’ll risk burning cash. Salaries, benefits, and equipment costs add up quickly.

If your revenue isn’t stable or sufficient, these extra expenses can lead to cash flow problems.

2- Underutilization

If you don’t have enough tech needs, your new hire might not have enough to do and get bored and frustrated.

You may end up having them work on tasks that aren’t crucial to your startup’s mission. Or worse, work on tasks that ARE necessary, but out of the core competencies of your employee.

It’s a demotivational situation and a waste of talent. Your team member may even be looking for better opportunities elsewhere, and leave you later, in the worst moment possible.

Hiring Too Late

1- Missed Opportunities

If you don’t have the technical expertise when needed, you might be late to innovate, scale, or improve your product, giving competitors a significant advantage.

A lack of technical skills can also slow down product development, and cause delays in launching new features or services.

2- Overwhelmed Team

Without the relevant roles in your team, existing team members, especially if they lack technical expertise, might become overwhelmed with tech-related tasks. Burnout, decreased productivity, and low morale are around the corner.

They might start cutting corners, crafting poor-quality work, with more bugs. That potential tech debt will be costly to address later.

When to Hire

Product-Market Fit

If you see strong signs you’re approaching product-market fit (growing user base, increasing revenue, or consistent positive feedback from early adopters), it’s time to consider bringing on technical talent.

Increasing Technical Debt

During the early stage, some tradeoffs have to be made, to test the market and release an MVP.

Maybe you’ve been relying on outsourced development or no-code solutions, or maybe the tools you chose can’t deal with your current needs.

You may face an accumulating technical debt is accumulating. When fixes and updates start taking longer and becoming more complex, it’s a sign that you need in-house expertise.

Too Much Time Spent on Tech Issues

Your time is precious. If you find yourself constantly dealing with and arbitraging technical problems instead of focusing on strategy and growth, it’s time to bring in reinforcements.

Funding is Secured

If your startup is gaining traction and you’re looking to scale your product or service, having a dedicated tech team will help you grow efficiently.

But hiring full-time employees is a significant financial move. Ensure you have enough budget to support a technical hire for at least 12–18 months. That includes salary, benefits, and any necessary equipment or software.

How to Hire

Define the Role Clearly

Before you dive into LinkedIn (or some other platforms), be sure to know exactly what you need.

Are you looking for a full-stack developer, a mobile specialist, or a technical co-founder? Be specific about the skills and experience required, but don’t write down every single language or technology you know of on the announcement.

If you don’t know which skills are essential, you can use tools like Datanerd (for Data positions).

A Good Job Description is Not Just Salary

Your job posting should not only list technical requirements but also show your startup’s vision, culture, and ambition.

Highlight the challenges and opportunities that come with being an early employee at your company. Tech employees need more than a paycheck, you need to give them a purpose.

Additionally, your job offer must let them feel they’ll be trusted and involved.

Use Your Network

Referrals are a great source of quality candidates.

Tell professionals (advisors, investors, and fellow founders) about the position you’re opening, and what hard and soft skills you’re after. Referrals from trusted contacts can often lead to the best hires.

You can also write on social networks and post on job boards (LinkedIn, Malt, etc), and attend industry meetups, conferences, and other networking events to connect with tech talent.

Technical Skills Are Not Everything

Don’t take me wrong, hard skills are important.

But hard skills can be learned or improved, with pair programming, books, training…

It’s harder to change one’s personality. So don’t overlook mad skills, soft skills, and cultural fit. Look for someone adaptable, and aligned with your company’s values and vision.

Her/his ability to communicate is essential too. You’re aiming at success, so your team will grow. This employee will be the one who knows about business AND tech, and the one that will have to bridge both.

Conduct Smart Interviews

Your interview process should assess both technical skills and problem-solving abilities.

You could include coding challenges or take-home projects, but be respectful of candidates’ time.

Consider pair programming sessions to see how they work in real time. Ask the candidate to showcase a project she/he worked on, and explain the Whys and the Hows:

• What were the problems addressed and faced?
• How were they solved?
• What technologies and hard skills were necessary?
• What soft skills were needed and learned?

Try not to overcomplicate your processes. No one wants a 6-step interview process. Also, provide feedback to the candidates you interviewed. This will be a big plus for your startup reputation and future interviews.

Side note: I’m not a fan of technical tests on the go.

Leetcode and competitors sure are great for solving algorithmic problems, but these platforms are not a good fit for interviews, in my opinion:

You’re asking a candidate to solve a useless problem, without any business objective in mind, in 30 minutes, with someone looking over her/his shoulder.

Is this the stressful environment you’ll provide?

Offer Competitive Compensation

Research market rates for the role you’re hiring. Several websites can help for this:

• Glassdoor
• Blind
• Salary.com
• Built In
• etc.

You may not be able to match big tech salaries, so you can consider offering equity, but be transparent about the risks and potential rewards of joining a startup.

Don’t fall for the “fruit basket and table tennis” in the office. That’s not what employees want. They want to be able to balance pro and family life.

Prepare Your Onboarding

Once you’ve made your hire, ensure a smooth onboarding process. Have clear documentation of existing systems and processes ready.

Set short-term goals to help your new hire make an impact quickly and feel integrated into the team.

Red Flags to Watch Out For

As a startup, you will evolve fast and probably have to pivot multiple times. That environment is very specific and demanding. Be careful:

• Candidates who are not willing (or able) to adapt to the fast-paced environment will not be a good fit.
• Your first tech employee will be the first one of a big team, as your startup grow. Communication with both C-levels and take team will be at the heart of the role.
• Make sure she/he can clearly explain complex technical concepts to technical AND non-technical team members
• Watch out for individuals who seem more interested in using trendy technologies than in solving your business problems.

The Impact of Your First Tech Hire

Your first technical employee will likely shape the technological direction of your startup for years to come.

They’ll make crucial decisions about architecture, technical stack, and development processes. They can serve as a magnet for attracting other talented developers as you scale.

It’s not just about filling a role. It’s about finding a partner who will help lay the technical foundation of your startup. Take your time, do extensive research, and don’t compromise on quality.

The right hire can greatly accelerate your startup’s growth. They’ll bring fresh perspectives, and technical expertise, and will have the ability to turn your vision into a technical product.

To your startup success 🚀!