“Hiring and managing the best people,” is the answer almost every entrepreneur gives when being prompted about the hardest challenge they face in building a company.
Human resources factor is indeed a crucial key, since no matter how brilliant your ideas are, or no matter how many funding you’ve secured, you will not achieve anything when you do not have the right human resources in your team.
Human resources factor becomes even more important in a startup company. Steve Jobs said,
“When you’re in a start-up, the first ten people will determine whether the company succeeds or not. Each is 10 percent of the company. So why wouldn’t you take as much time as necessary to find all the A players? If three were not so great, why would you want a company where 30 percent of your people are not so great? A small company depends on great people much more than a big company does.”
Okay, you might say, I also want to have a great team, but…
- I don’t have time to do the hiring, and our small startup do not have a dedicated HR person
- A class people demand high salary, and we do not have the budget.
Those problems are very common in startups with less than 10 people, and are still in bootstrapping mode. Unfortunately, the excuses are not acceptable. If you think it’s expensive to hire a professional to do the job, wait until you hire an amateur. You pay peanut, you get monkey. Count the costs: the cost from their mistakes, and, most importantly, the opportunity cost when your startup is not growing as massive as it should be.
Make the right investment. Before you rent that fancy office or buy that high-end software, make sure you have invested completely in your team.