Last week I was talking to an entrepreneur that’s in the process of raising money. Naturally, I asked what he planned on doing with the money and got the expected response: hire 10 new team members including software engineers, sales reps, one support rep, and one customer success manager. Awesome, now for the hard question: how many of the positions do you already have candidates lined up and ready to go? Answer: 0.
Here are a few thoughts on building a recruiting pipeline prior to financing:
- Recruiting without a hard and fast start date is harder than normal recruiting, but still the same process (word of mouth, referrals, LinkedIn, social media, recruiters, etc)
- One challenge is expectation setting around timing of when the financing will close and a potential start date, especially if the candidate has multiple offers
- Recruiters can be a good resource and understand the role of fundraising in startups along with nurturing candidates
- When money is raised there’s an expectation to put it work quickly, and hiring is often the largest area of investment
Entrepreneurs would do well to build a recruiting pipeline prior to financing so that they have great candidates lined up that can come on board as quickly as possible.
What else? What are some more thoughts on the idea of recruiting candidates in advance of having the resources to hire them?