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Back to The Difference Between 1% Improvements and 10x Growth | Immad Akhund, with Immad Akhund.

When Should a Startup Hire Its First Recruiter?

Immad Akhund says a startup should have an internal recruiter once it is looking to hire more than three people a month. People generally wait too long for a recruiter. He hired the first one at about 20 people, after raising 20 million dollars, and counts the timing as right. Quality, speed, and almost every element of hiring improved a ton after that first recruiter.

For most other roles, waiting too long is the better default. Do the job yourself first, even when you do not understand it well, so you learn what the role really needs. A founder will not know whether a hire is doing a good job unless the founder has at least failed at the work. Hiring a bunch of roles you only think you want is also an easy way to spend too much money. Do the job until it is painful, then hire.

Finance shows what waiting past the pain costs. The first finance person, with no CFO and no one else in that seat, arrived at about 200 people. Around 80 would have been better, because the help was quite useful. Spreadsheets were manageable and an accountant was already there, so an internal finance person did not feel necessary. Product managers were a deliberate late hire. He was against them and brought in the first one at about 120 people. Under 30 people, the founder should be the product manager, the engineer should be a product manager, and whoever else is on the team should be too, so everyone stays close to the product and the founder stays the primary product owner.

Grokipedia·Immad Akhund

Transcript

The Difference Between 1% Improvements and 10x Growth | Immad Akhund ·

Grit

More from this episode

  1. How Does a Founder Maximize Grit?Immad Akhund says a founder maximizes grit only when personal life and business life stay in sync. Burning out means you will not be the highest-grit person.
  2. Why Does Immad Akhund Like Being Challenged?Immad Akhund finds adversity fun and wants to be challenged. A normal week where nothing tricky is happening and everything is up and to the right feels boring.
  3. Why Should Founders Stay Emotionally Steady?Immad Akhund says founders should stay emotionally steady, because responses that run too positive or too negative make long-term grit hard.
  4. Why Does Mercury Keep Launching Products Beyond Banking?Immad Akhund feels some companies get interesting at scale, where you can do more, while other companies converge, and in his view most companies tend to do…
  5. Why Should Founders Enjoy the Day-to-day of Building?Immad Akhund says a founder has to enjoy the journey, because the work lasts too long to run on the highs.
  6. Do Founders Have to Be Unrealistically Optimistic?Immad Akhund says founders have to be unrealistically optimistic.
  7. Why Do Companies Keep Chasing 1% Improvements Instead of 10x Bets?Immad Akhund says a company at scale keeps taking the 1% improvement because it pays now, while a new product usually does not.
  8. What Is a Good Sales Payback Period?Immad Akhund says a sales hire at a startup with product market fit should pay back their salary in about one year.
  9. How Much Revenue Does a Series a Need Now?Immad Akhund says a reasonable Series A now takes the same 3x yearly growth and probably $3 million a year in revenue, unless the startup is on brand, on…

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