One of the most common questions I get from founders:
"When should I hire my first employee?"
The answer isn't a number. It's a set of conditions.
I've seen founders hire too early and burn through runway. I've seen founders wait too long and burn themselves out. Both are mistakes.
Let me give you a framework for finding the right time.
The Danger of Hiring Too Early
Here's what happens when you hire before you're ready:
You Burn Cash
Every employee costs money. Salary, benefits, equipment, software. A $80K employee might actually cost $120K when you factor everything in.
You Add Complexity
More people means more coordination. More meetings. More communication. More management.
You Create Overhead
Employees expect work. If you don't have enough for them to do, you either:
- Pay them to do busywork, or
- Let them go
Both are bad.
You Dilute Focus
Instead of focusing on the most important things, you're now managing people.
The Danger of Hiring Too Late
And here's what happens when you wait too long:
You Burn Out
You're working 80 hours a week. You're doing everything—product, sales, support, admin. Eventually, you break.
You Move Slow
You can only do so much yourself. If you're the bottleneck, everything slows down.
You Lose Momentum
There are only so many hours in a day. If you're maxed out, you're not growing.
You Miss Opportunities
Sometimes, speed matters. Being first matters. If you can't move fast enough, you lose.
The Hiring Sweet Spot
Here's when you're ready to hire:
Signal #1: You're Doing Work That Doesn't Scale
You're spending your time on tasks that, if you had help, could be delegated.
Examples:
- Customer support (the same questions over and over)
- Administrative tasks (scheduling, bookkeeping)
- Repetitive development tasks (bug fixes, small features)
- Sales outreach (the same email, over and over)
If you're doing work that could be done by someone else, you're ready to hire.
Signal #2: You Have More Work Than One Person Can Do
You've defined your priorities. You're working on the highest-impact things. And still, things are falling through the cracks.
If you can't accomplish everything on your list even working full-time, you're ready to hire.
Signal #3: You've Found Product-Market Fit
You know people want your product. You're getting traction. You're ready to scale.
If you're still figuring out product-market fit, hiring is premature. You need to stay lean and iterate.
Signal #4: You Can Afford It
You have runway for at least 12 months of salary. Not 3 months. Not 6 months. 12.
Because it takes time for a new hire to become productive. And if things go wrong, you need time to figure it out.
Who to Hire First
Once you've decided to hire, who should you hire?
Priority #1: Someone Who Fills Your Gap
What are you bad at? What do you hate doing? What takes you the most time?
That's who to hire.
Examples:
- If you're technical and hate sales → hire a salesperson
- If you're a marketer who can't code → hire a developer
- If you're doing everything and drowning → hire an assistant
Priority #2: Someone Who Can Do What You Can't
Not someone who does the same thing as you, just faster. Someone who does something you can't do at all.
Priority #3: Someone Who Fits Your Culture
Early hires shape your culture. They set the tone. They influence everyone who comes after.
Hire for values and culture fit, not just skills.
The First Hire Decision Tree
| Question | If Yes | If No |
|---|---|---|
| Do you have product-market fit? | Continue | Don't hire yet |
| Do you have 12+ months of runway? | Continue | Don't hire yet |
| Is there work that doesn't scale? | Continue | Wait for work to emerge |
| Can you clearly define the role? | Continue | Wait until it's clearer |
| Do you have a specific person in mind? | Hire them | Wait until you do |
If you answered "yes" to all of the first four questions, you're ready to hire.
Alternatives to Full-Time Hires
Before you commit to a full-time hire, consider alternatives:
1. Freelancers
Hire for specific projects or tasks. More flexible, less commitment. Good for trying someone out.
2. Contractors
Similar to freelancers, but for ongoing work. No benefits, no commitment. Easier to start and stop.
3. Part-Time
Someone working 20 hours a week. Half the cost, half the availability. Good for roles that don't need full-time.
4. Interns
Cheap labor, but requires training. Good for getting help with smaller tasks while investing in someone's growth.
5. Agencies
Hire a company to do the work. Expensive, but no management overhead. Good for things you need once, not ongoing.
The Cost of Your First Hire
Before you hire, understand the real cost:
| Cost Category | Example |
|---|---|
| Base Salary | $80,000/year |
| Benefits (30%) | $24,000/year |
| Equipment | $3,000 one-time |
| Software/Subscriptions | $2,400/year |
| Your Management Time | 5-10 hours/week |
| Total Annual Cost | ~$110,000+ |
That's a lot of money. Make sure it's worth it.
Red Flags for Hiring
Watch out for these signs you shouldn't hire yet:
- You don't have enough work: Don't hire to fill time
- You're not sure what they should do: Define the role first
- You're hiring because everyone else is: Build your own path
- You're hiring to solve a people problem: If someone's not working out, address that first
- You can't afford it: If you're worried about cash, wait
- You don't have PMF: Stay lean until you do
The Hiring Process for Founders
Once you've decided to hire, here's how to do it:
Step 1: Write a Clear Job Description
What will they do? What skills do they need? What values must they have?
Step 2: Look in Your Network
The best hires often come from people you know. Reach out first.
Step 3: Test Before You Hire
Give them a small paid project. See how they work. Much better than interviews alone.
Step 4: Start with a Trial Period
3 months. Clear goals. At the end, decide if it's working.
Step 5: Invest in Onboarding
The first 30 days matter. Set them up for success.
The Bottom Line
Hiring is not a milestone. It's a tool.
You hire when you have more work than you can do, you can afford help, and you've found product-market fit.
You don't hire because:
- It feels like progress
- Investors expect it
- Everyone else is doing it
- You're tired of doing everything yourself
Those are all bad reasons.
The right reason: you're ready to scale, and you need help to do it.
Need Help Building Your Team?
At Startupbricks, we've helped founders build teams at the right time—from first hire to scaling. Whether you need:
- Help deciding if you're ready to hire
- Guidance on who to hire first
- Support with the hiring process
- Advice on compensation and structure
Let's talk. We help founders build strong teams.