Slides from the next week of my CMU course "Lean Entrepreneurship". This week focuses on recruiting team members as your business scales.

1. Recruiting Team
Members
Sean Ammirati
Partner, BirchmereVentures
Adjunct Professor, Carnegie Mellon University
#CMULean

2. A Team is a prerequisite
for Success!
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3. “No matter how
brilliant your mind or
strategy, if you’re
playing a solo game,
you’ll always lose out
to a team.”
Reid Hoffman,
Co-Founder & Chairman
LinkedIn
Source: http://www.flickr.com/photos/joi/1431818434/sizes/l/in/photostream/#CMULean

4. Phases of Growth
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5. Phases of Growth
#ofTeamMembers
Founding
Team
First Few
Key Hires
Original
Core Group
Scale
Up
#CMULean

6. Phases of Growth
#ofTeamMembers
Founding
Team
First Few
Key Hires
Original
Core Group
Scale
Up
#CMULean

7. Hacker
+
Hustler
(sometimes + Designer)
In the beginning ...
#CMULean

8. Phases of Growth
#ofTeamMembers
Founding
Team
First Few
Key Hires
Original
Core Group
Scale
Up
#CMULean

9. Generalist who will act like founders
Whole digit % of company (fully diluted)
from option plan
Sometimes even call them “founders”
First Few (< 5) Employees...
#CMULean

10. Reach into extended network ...
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11. Phases of Growth
#ofTeamMembers
Founding
Team
First Few
Key Hires
Original
Core Group
Scale
Up
#CMULean

12. “T” type: deep expertise in one area but also
ability to help on a lot of problems
This group creates the momentum around
culture that is developing
Even managers are “player coaches”
Approximately 5 - 15 Employees
#CMULean

13. If you do not manage culture,
it manages you, and you may
not even be aware of the extent
to which this is happening.
Edgar Schein, professor MIT Sloan School of Management
http://www.flickr.com/photos/31242051@N06/3957131735
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14. #CMULean

15. Phases of Growth
#ofTeamMembers
Founding
Team
First Few
Key Hires
Original
Core Group
Scale
Up
#CMULean

16. CEO should still interview each candidate
Professional managers get involved to help
scale
Still important team can handle ambiguity
Approximately 15 - 100+ Employees
#CMULean

17. Compensation
• Mix of equity (options) and cash
• How much is driven by the balance sheet
• If paying below market, make up with
options / equity
• DO NOT defer compensation and put it
on your balance sheet as a liability
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18. https://angel.co/salaries
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19. Why do people join?
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20. “Do you want to
sell sugared
water for the
rest of your life?
Or do you want
to come with
me and change
the world?”
Steve Jobs
http://www.flickr.com/photos/mateus27_24-25/6231257283
#CMULean

21. Interviewing
• Get to know the whole team
• Start looking at their historical work
• Then test in your environment
• “Try before you buy” whenever possible
#CMULean

22. Example: Interviewing a
Developer
1. Filter resumes
2. First Interview: bring them in and ask them
to bring their best code to review with you
3. Second Interview
• Pair program
• Take them to lunch / out for a drink
#CMULean