One of the biggest challenges, as an entrepreneur, after reading this week’s chapter, is deciding whom to hire and when. Chapter 8 of The Founder’s Dilemmas describes hiring as a major decision for founders because employees can provide skills and resources the founder may lack. However, hiring is not simply about finding someone who looks good on a résumé. Founders also have to consider timing, cost, experience, and whether the person fits the business’s needs and culture (Wasserman, 2012).
This is especially important to keep in mind as I think about my future bakery and café. As a new business, I would have to be careful not to hire too many employees before the business has enough revenue to cover payroll. At the same time, waiting too long to hire could leave me trying to handle too many responsibilities myself and could affect customer service and business growth. Research by Fairlie and Miranda (2017) found that when startups do hire their first employees, much of that hiring occurs during the first few years of the business. More recent research also shows that early-stage startups face significant resource constraints and uncertainty when making hiring decisions (Rocha & Grilli, 2024).
For founders, another situation that comes up is deciding whether to hire someone based primarily on experience or on their potential and cultural fit. For a bakery and café, I want employees with the technical skills required for their positions, as well as those who understand the importance of customer service. Founders who do early hiring practices can influence an organization’s future workforce and culture. Relying heavily on people from the founder’s existing personal or professional networks can also contribute to greater similarity among employees over time (Brymer et al., 2024).
For my future goal of owning a business, I believe the most important lesson is to hire intentionally. I would want to identify what the business actually needs before creating a position and then select someone who can contribute those skills while supporting the culture I want to build. I have also learned that consistently updating a job description or a role’s responsibilities is crucial to finding the best candidate. As La Reina’s Bakery & Café grows, my hiring decisions may need to change as well. The right employee for the beginning of the business may not necessarily be the person needed at a later stage. Ultimately, hiring is not just about adding employees; it is about building the team that will help turn the founder’s vision into a successful business.
References
Brymer, R. A., Rocha, V., & others. (2024). Affiliation-based hiring in startups and the origins of organizational diversity. Personnel Psychology. https://doi.org/10.1111/peps.12612
Fairlie, R. W., & Miranda, J. (2017). Leaping: The determinants of entrepreneurs hiring their first employee. Journal of Economics & Management Strategy, 26(1), 3–34. https://doi.org/10.1111/jems.12176
Rocha, V., & Grilli, L. (2024). Early-stage startup hiring: The interplay between startups’ initial resources and innovation orientation. Small Business Economics, 62, 1641–1668. https://doi.org/10.1007/s11187-023-00818-7
Wasserman, N. (2012). The founder’s dilemmas: Anticipating and avoiding the pitfalls that can sink a startup. Princeton University Press.
Leave a Reply