Why join your seed-funded tech company?

When your tech company was given seed funding a year or so ago, hiring top talent is simply one of a million goals that you are trying to achieve. We get that. Plus, after your early successes it’s likely that your start-up is now going full throttle to secure Series A which will utilise your entire bandwidth.

Considering that 23% of funded companies fail because they haven’t got the right team, when does recruiting the right talent become one of your top 3 priorities?

23% of funded startups fail because of the wrong team

Attracting and retaining the right talent at a seed-funded company is extremely tough. Especially, when you’re in a competitive environment with 100’s of other Fast Growth Tech companies each vying for the best. It’s even more competitive when you’re up against the established tech companies.

You will overcome objections from talent throughout the hiring process. They may not even respond to your initial advances, let alone come and meet with you. Here, we look at the main objections that you will come across and how you can overcome them, so that you can build the best team for your tech business.

 

“It’s not secure enough”Job security for seed funded companies

#1 objection that candidates will come to you with. Successful talent in the tech sector are secure, earning a decent package and have their lifestyle sorted down to a tee. Why would they want to move to a seed funded company that could be unstable?

How to overcome this:

Very few jobs are secure nowadays, why not be in control of your own destiny? Global tech businesses can replace talent within weeks if they chose to. Check out HP – the largest PC maker globally – plans to cut 5,000 jobs in 2019. Microsoft laid off 18,000 in 2015 and around 10% of their workforce last year.

 

 

Bad experience of joining seed funded companies“I’ve worked at poorly ran start-ups before”

It’s true that many start-ups fail, but if your tech company has got this far already – you will be aware of all the statistics. Lack of focus, lack of motivation, the wrong investors… the list of reasons for failure goes on.

How to overcome this:

Your passion for your business should win this. If you can’t sell your own technology, then you shouldn’t be hiring anyway. An entrepreneur should love what they do and if they don’t, they should shut up shop.

Let candidates engage with you and buy-in to your vision. Show them the plans (using an NDA if you feel more secure) and map out how you think the next 5 years will look. Sell the dream.

 

Worklife balance of joining seed funded companies

“Not a great work/life balance at a start-up”

Entrepreneurs are famous for their work-ethic. Every waking minute is dedicated to growing your tech business. For employees joining a tech start-up, they have already become accustomed to a routine – including family-time, exercise and travel.

How to overcome this:

Offer flexibility to them and their families. Encourage work-from-home days. You can provide time for exercise daily. Get the families together regularly and encourage partners to buy-in to your vision. When families are regularly contributing to the end goal, it can become a powerful motivation for everyone.

 

No processes when joining seed funded companies“No processes are in place”

There is always a reason why a process is in place. Some Fast Growth Tech companies are very aware of how much time is spent handling unproductive employees and processes. The best tech businesses have fine-tuned working days to ensure employees are engaged throughout.

How to overcome this:

New hires can shape the processes. After finding out what processes are important… could you engage new hires with introducing processes that suit them and seed-funded business? Steve Jobs once said “It doesn’t make sense to hire smart people and then tell them what to do; we hire smart people, so they can tell us what to do”.

Also, think about the amount of red tape that someone must get through at a global tech firm! Sales prevention techniques can be challenging for anyone to handle at large business.

 

Internal support when joining seed funded companies

“There is no internal support”

Prospective hires will be spoiled with inbound leads, a finance team, a CRO on hand to help, technical gurus and a coffee machine at every table. At a seed-funded company, you’ve done extremely well to get to 10 people in the business!

How to overcome this:

Use outsourced companies. Consider entering the gig economy. Whilst you won’t have the funds to build large support functions within your business – reassure any hire that you have a network of partners who pick up the slack when needed.

 

 

Reduced Earnings when joining seed funded companies“Earnings are reduced”

Successful tech candidates who have been performing well will be handsomely paid. If a candidate is looking to join you but haven’t left their business yet – you will have to compete with the best getting counteroffers.  Of course, nobody should accept a counteroffer – but money will often be a major factor to consider.

How to overcome this:

Offer share options and target-related pay rises. You can figure out how much of your business you are willing to give away – and you should only give away a part of your tech business if someone has earned it. If you agree with the candidate the parameters on how to earn-in, this should more than compensate for the short term hit.

 

too much work when joining seed funded companies

“There’s too much work to do!”

It is what it is. Who has been lucky enough to be very successful without having to work for it? Very few. Potential candidates will be comfortable with their workloads and won’t be willing to step out their comfort zone.

How to overcome this:

Don’t hire them. At an early stage, if they are conscious of the work-load that happens at a Fast Growth Tech start-up then it’s clear that these thoughts will percolate when they join. It’s a warning sign that they don’t have the right attitude for a tech start-up. Hire the right people to help you grow.

 

If you’re coming across other objections and struggling to convert interviews into hires, Org 3D have placed with seed-funded companies right the way through to Series C rounds and beyond IPO. We can help you secure your talent – drop us a message on [email protected]