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Small and mid-sized businesses (SMBs) struggle to hire not from a lack of applicants, but because talent from large corporate layoffs often lacks the "owner's mentality" and versatile experience required to thrive in a smaller company. The skill sets are fundamentally different.

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Contrary to popular belief, a resume from a top tech company can be a disadvantage when applying to startups. Hiring managers now often prefer candidates with freelance, agency, or startup backgrounds, fearing that big-company hires will bring a slow, process-heavy mindset incompatible with a nimble environment.

A frequent hiring error is choosing candidates because you believe they possess "magical knowledge" from their specific background that will solve all problems. These hires often fail by rigidly applying an old playbook. Prioritize adaptable, curious problem-solvers over those with seemingly perfect but ultimately static domain expertise.

Hiring executives from large corporations like Google or Microsoft into an early-stage startup almost always fails due to a 'massive impedance mismatch.' Their expectations for established processes clash with the startup's reality. HubSpot experienced a near-100% attrition rate with these types of hires.

Companies often complain about a lack of qualified candidates. The real issue is their failure to invest in developing the potential of hires who aren't 'perfect.' Talent development is a core organizational responsibility, not a luxury.

Early-stage founders often mistakenly hire senior talent from large corporations. These executives are accustomed to resources that don't exist in a startup. Instead, hire people who have successfully navigated the stage you are about to enter—those who are just "a few clicks ahead."

The most significant differentiator in high-quality offshore talent is an ownership mentality. Many hiring processes fail because they select for candidates who can follow instructions ("do the work") when the company actually needs someone to take initiative and own outcomes.

Neil Blumenthal warns that hiring talent from large, established companies can be a mistake. These hires often thrive in environments with fully built-out systems, whereas a startup needs entrepreneurial problem-solvers who can create those processes and manuals from scratch.

Actively recruiting entrepreneurs whose own ventures recently failed brings in smart, driven individuals with high ownership and a hunger to prove themselves. This is invaluable in the early, capital-constrained days when you need a team with a founder's DNA.

Founders often chase executives from successful scaled companies. However, these execs can fail because their experience makes them overly critical and resistant to the painful, hands-on work required at an early stage. The right hire is often someone a few layers down from the star executive.

Don't default to hiring people who have "done the job before," even at another startup. Unconventional hires from different backgrounds (e.g., archaeologists in customer success) can create unique creativity. The priority should be finding the right fit for your company's specific stage and needs, not just checking an experience box.