Why Your First 5 Hires Can Make or Break Your Startup

In a startup, every single hire matters, but those first five? They can define everything - from how quickly you grow, to the culture you build, and most crucially, whether your business makes it past that year-one milestone.

If you're building your early team, here's why getting it right is crucial and what to consider when making those key decisions.

These Are Your Foundation

In a larger business, there’s typically enough structure to absorb a bad hire. In a startup, every person has a much bigger impact. Whether it’s product, sales, marketing, or operations, your first five hires are shaping how everything operates.

The way they work, communicate, and solve problems will shape various aspects of your company, from its culture and processes to its pace of growth – long after they've settled in. You’re not just hiring employees; you’re building the foundation for your operating system and developing your future leaders.

You’re Hiring Attitude As Much As Skill

At this stage, mindset matters more than job titles. You need people who can navigate uncertainty, take ownership, and figure things out on their own. The best early hires are those who thrive in wearing multiple hats and proactively solve problems, not just those with the right keywords on their CV.

While skills are important, the ability to adapt, work independently, and remain resilient is just as crucial as experience.

Culture Is Set Early and It’s Hard to Change

Your culture isn’t defined by a mission statement; it’s shaped by how your team behaves every day - the values they work by, how they handle problems, and how they communicate. All of this is set in the early months, and your first five hires play a huge role in defining what it looks like. As my mother would always say, "The habits you create now will follow you for life."

In other words, if you hire people who thrive on collaboration, open feedback, and moving quickly, that’s the culture you’ll build. But hire people who prefer rigid processes and working in silos, and that will shape your culture in a very different way, even if that’s not what you intended.

The Wrong Hire Costs More Than Just Salary

At a large company, if someone doesn’t work out, there’s usually a process to manage it, and the business moves on. In a startup, however, a bad hire can set you back months. You lose time, momentum, and, in some cases, credibility with clients or investors. And that’s before considering how long it took to bring that hire up to speed, the stagnation in work while you find a replacement, and the time it takes for the new hire to ramp up. A common mistake founders make is rushing into a replacement and repeating the cycle. DON’T! Taking a few extra months to make the right hire now will save you time, money, and credibility in the future.

This is why getting those early hires right is so crucial. It’s not just about the cost of replacing them; it’s the disruption it causes to the entire business.

They’ll Be Hiring the Next 20 People

One thing founders often forget: your early hires don’t just do the work, they also help build the next wave of your team. They’re the ones recommending candidates, sitting in interviews, and setting the standard for who fits within the business. They also act as your company ambassadors, sharing their experiences and values with future hires.

If you get the first five wrong, you’re not just making five mistakes; you could be setting the standard for dozens more down the line.

Final Thoughts

Hiring at this stage isn’t just about filling roles; it’s about setting your business up for success. The right early team can help you move faster, make better decisions, and create a culture that attracts even more top talent.

If you're building your team and want to ensure you're bringing in the right people - those who can handle the chaos, drive growth, and stick around - we can help!

We don’t want you to feel overwhelmed; we want to be a partner in your success and help you make hires that will make a lasting impact. Whether you need advice, interview plans, benchmarks, assistance in creating your roadmap, or help taking the hiring process off your shoulders, we’re here for you.

Get in touch or explore our Client Resource Hub for more practical guidance on building your team the right way.

Remember, hiring is a joint venture.