The Controversial First Role to Hire After Your “A Round”
bothsidesofthetable.com
bothsidesofthetable.com
E.g. in dot.com 1.0 it was common for a 100% MBA and sales team to get funded and then outsource all tech. I saw this happening as recently as 2008-2009.
What an unbelievable change in the industry...
People talk about how market rates are fair, and it makes sense to stick to them because you can always hire someone else. But you don't get great people in key positions by paying them less than your other employees.
Just because it's obvious to you, doesn't mean it's obvious to everyone else.
Just because it's obvious to you, doesn't mean it's not worth talking about.
In this case, I've seen plenty of startups postpone hiring any admins until 15-20+ headcount, in the interests of cutting costs to the bone and being scrappy. Clearly to these people, the author's recommendation is not obvious at all.
If you think that someone's advice is bad and want to call them out on it, go ahead. If you think that someone's advice is so obvious that it's not useful, then just ignore them or downvote them. But telling someone on a message board to shut up because you agree with everything they said, just comes across as both rude and not useful in any way.
Some (perhaps most) good ideas are obvious. Still worth repeating them.
I wouldn't invest in that.
What are the (potentially toxic) implications of this myth? First, that the founder/CEO isn't a "true founder" unless he or she is entirely self-sufficient. Second, that hiring an office manager or personal admin early on signals weakness -- that it's the founder being precious or high maintenance. Unheroic.
You'd be surprised at how pervasive the myth is, and how many founders are either too self-conscious or too caught up in the scramble to even consider the benefits of hiring for this role. A solid office manager/admin is a really strong hire, and if anything, hiring one should signal maturity. It shows that the CEO knows how to segment the tasks into those he/she should be focused on, and those he/she should be delegating. It shows that the CEO knows how to value his/her time and energy appropriately.
This may seem obvious to many, but certainly not to all.
Been there. Self-destructive. Bad idea.
Office managers typically help with a mix of accounting, HR, coordination, and dozens of other operational tasks. In many cases doing a better job than key people who were overloaded with them before.
While I suspect that Suster is making an exaggerated conclusion to drive page views, it doesn't sound that off the mark to me. After raising an A round, you're going to want your key people spending as much time as possible on scaling the core business. An office manager is a great way to help them do that.
This is a very broad conclusion about what is typical. From where are you drawing this statement?
Also, why shouldn't the office manager be put in charge of important things? They're a paid employee with specific skills.
If the office/ops mgr can work on customer or product development, that's a different story.
I got bitten by this pretty badly. But perhaps bureaucratic load in Europe is much harder than in the US. And for me, it was never a question of need — the need for designated operations/administration employee was obvious from day 1 after incorporation, I just thought I can't afford it.
Well, I was wrong. I couldn't afford not having such a person. Some people say the same about lawyers.