When you need to fill a major operational gap, hire for the role (e.g., a COO) before immediately seeking a co-founder and splitting equity. This allows you to "date before you marry"—assessing a candidate's impact and fit as an employee before committing to them as a long-term partner.
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Founders often believe they can hire one "integrator" (like a COO) to handle all operational details. This is a myth. True scaling requires hiring specific, talented functional leaders (e.g., Head of Sales, Head of Product) who can solve a single, major business constraint, not a generalist helper.
Don't default to a 50/50 split on day one. Instead, agree to formally discuss equity only after reaching a predefined milestone, like $10,000 in revenue. This allows you to base the split on demonstrated contribution and commitment, avoiding the resentment from premature, misaligned agreements.
Don't give away half your company to a "business person" who handles administrative tasks. A non-technical co-founder must possess and execute on the most valuable skills in a SaaS business: sales and marketing. Otherwise, they don't deserve co-founder level equity.
Delaying key hires to find the "perfect" candidate is a mistake. The best outcomes come from building a strong team around the founder early on, even if it requires calibration later. Waiting for ideal additions doesn't create better companies; early execution talent does.
Technical competence is the easiest part of a technical co-founder to evaluate. The real risks lie in misaligned goals (lifestyle vs. unicorn), personality clashes, and incompatible work styles. Prioritize assessing these crucial "human" factors first.
The founder's number one piece of advice is to get the co-founder relationship right. While you can pivot ideas, raise more funding, or change markets, replacing a co-founder is incredibly difficult. A strong, complementary founding team is the foundation for overcoming all other startup challenges.
Harvey CEO Winston Weinberg asserts that if you've never done a role, you will hire the wrong person 100% of the time. For first-time founders, spending even three months in a function provides the necessary context to understand the job's demands and successfully hire a leader for that position.
Granting a full co-founder 50% equity is a massive, often regrettable, early decision. A better model is to bring on a 'partner' with a smaller, vested equity stake (e.g., 10%). This provides accountability and complementary skills without sacrificing majority ownership and control.
Ather's founder learned that hiring senior leaders for non-core functions too early fails due to value system clashes. Founders must first build the function themselves, establish principles, hire into that mold, and only then step back. This ensures cultural alignment.
While complementary strengths are valuable, it's critical for partners to identify skills they both lack. Recognizing these shared blind spots is key to knowing when to bring in an employee, mentor, or coach to fill the gap, preventing the business from stalling in those areas.
