Now's Not the Time to Make Risky Hires
Not that there ever is
one. The labor market might be tight, but you lowering your standards will come
back to bite you. As for friends, family and former startup CEOs, just say
no.
BY HOWARD
TULLMAN, GENERAL MANAGING PARTNER, G2T3V AND CHICAGO HIGH TECH
INVESTORS@TULLMAN
I can't count the times
I've told entrepreneurs that the worst thing you can do when there's a cash
crunch is to try to do things cheaply that you shouldn't do at all. Almost
without fail, these kinds of efforts end in heartache, embarrassment, or worse.
With scarce resources, the risk of trying to be a mile wide and covering all
the bases a little bit is that your clients, customers, and competitors will
discover that you're an inch deep in critical places. It's just like
trying to spread too little peanut butter across too many slices of bread.
Cheap is the answer for people who can't figure out better, but
ultimately you only end up kidding yourself. Doing a few critical things well
is a much smarter bet and a far better use of your bucks.
Importantly, I've always
expressed this simple idea quite practically in terms of dollars and cents. But
there's also another equally important variation on the same concept today,
which has nothing to do with money. The emotional investment and commitment
that we make to almost anything we're doing is just as important -- or maybe
even more so -- than whatever dollars we dedicate to the task.
The best operators I
know, in any business, do everything with a vengeance. Jocks leave it all on
the court or on the field; successful entrepreneurs don't have a brake or a
governor on their throttles. They're all in, all the time; and even in the
corporate world, no one who wants to make a difference comes to work intending
to do just a decent job. The ones who commit fully and care
the most are the ones who almost always win.
This is why it's so
discouraging for me to watch owners and operators doing their hiring in a
half-hearted and unhealthy way. We're in a tough labor market and I realize
that it's surprisingly difficult to find really special and talented employees.
But settling for what you can quickly or easily get rather than holding out for
what you actually need to build your business is beyond pennywise and pound
foolish - it's a formula for failing in the long run. In the toughest of times,
you especially need the discipline to hold on, to look for and hire grown-ups,
and to hold out for the very best. Because the minute you decide to settle for
less than you need, you end up with even less than you settled for. Hiring everybody is good for nobody.
I've seen and been on
every side of this situation too many times to count and I've developed a few
simple rules that apply across the board in the best and worst of times and in
the tightest and toughest employment markets. Here are five of the most
critical ideas and guidelines.
(1) The best person
you interview isn't necessarily the best person for the job you're trying to
fill. CEOs generally are lousy interviewers. They don't listen to
candidates; they're totally focused on trying to sell them on the business. Too
often, they end up kidding themselves. Don't talk yourself into believing that
you'll find the right spot somewhere in the company for that great guy or gal
sometime down the line. Everything today is primarily about filling the needs
you have right now. Hiring "smart" people isn't the same as building
a great team. You don't get to build your bench until after you've built your
business.
(2) If there are
things you don't like about a job candidate, you'll like them even less after
you hire that person. Forget about converting or convincing someone
who's almost right that they can get the job done, or convincing yourself that
things will get better in time. People can improve in the natural
direction they're headed, not against the grain. You don't have the time to try
to save or salvage the ones who aren't already leaning strongly in the right
direction. When you say you don't know about someone, the truth is that you do.
Take a pass.
(3) Hire people
who can get you where you're going -- not people who claim to have been there
before. A great deal of prior experience isn't that useful if you’re
trying to do something that's never been done before. Be especially
careful about hiring failed founders who always
come with a bunch of unexpected baggage. Lending someone who's tried and failed
a helping hand is great, but this idea from the Valley that a parade of past
failures is some source of pride and a badge of courage never made much sense
to me.
(4) Don't change
the job description to compromise, or just to get someone hired. Be careful
not to try to make a tough task easier by moving the goalposts or changing the
requirements of the position in order to get things done. Stick to your guns
and be patient enough to wait for the right person. Signing up someone who
"sorta fits" and then holding your breath and hoping for the best
isn't ever the smart way to go.
(5) Forget about
hiring friends or family to fill in for a while. It's bad enough when
an entrepreneur borrows money from relatives and friends to get the business
started. The old caution still applies - before you borrow money from a friend,
decide which you need most. It's almost always worse when you hire friends and
family to help run the company. A simple rule: never hire anyone that you can't
fire.
Bottom line: Go for the
gold - get the best people you possibly can who are right for each position. And
don't be intimidated in the process: "A" players hire A's;
"B" players hire C's. Settling only makes sure that you'll end
up second best.