Learning from Failure – Early Hiring Burns Cash

Timing your first hiring for your startup is very important for an entrepreneur. Hiring too early leads to wastages which can prove very crucial if you need to bootstrap your venture. Identifying the gaps in your startup, making a list of the precise skill sets you require and then finding the right profiles to match the requirements is the primary task and responsibility of the entrepreneur. The more the inaccuracy or deviation in this, the more the wastage of money and time.

Wishareit is a social gifting platform which made this very mistake. On receiving a positive feedback from its initial users and being overly optimistic, the startup hired too many people too soon which cost them months of runway.

Advice – Identifying the gaps in your startup and filling them with the right people is the right way to approach hiring.