Ask HN: Best ways of letting someone go in an early stage startup? | Hacker News Reader

Ask HN: Best ways of letting someone go in an early stage startup?

9 pointszurvania10 comments

I'm in a 1 man startup (not by design - cofounder left) and I have been struggling managing everything by myself.

I was introduced to my current contractor through a friend, so I thought she was vetted. Her background is product management. For the most part she is better than I am at picking up the phone and calling. But overall my gut tells me she can't really execute and can only delegate - typical of middle management.

She wants to come on full time. Her expectations are that the compensation package meets industry levels (self proclaimed $225k). I told her this is not possible. 1% equity and a salary at the most $100k is the most I'd be willing (assuming I find anything for her to do). But she wants 20% equity.

Any recommendations on how to handle this situation, particularly on how to let her go.

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Be direct, honest, and compassionate. They are good at something, but not the thing you need most now. Explain that to them, let them go, look for someone else.

Don’t forget that this person is a part of your network and always will be. They might be a good fit later. Someone they know might be a good fit.

Good advice. Also, if OP’s statement “my gut tells me she can't really execute and can only delegate” is accurate, it’s not about compensation. Given that, don’t bring up compensation at all.

How does op save face now that he has made it about compensation?

Rule number one, you already have doubts about her, so it is a no on hiring her. If you are by yourself, you do not hire anyone who isn't a 100% yes in your own head. If you compromise, even at $100k and 1% you will be kicking yourself in 6 months when your gut instinct was right. Find someone else who is realistic in their needs and with what the company needs. When you have 3-4 people interviewing someone and 1 person is a soft no, then it should be up to the team, if anyone is a hard no it is a no period.

While you are finding the new person, work with her to see if you can find a path forward, or if nothing else she helps offload you while you are hiring.

Tell her that I will do all of the tasks she's capable of doing (and more) for 45k. And that won't even include delegation.

It's a cold and competitive world out there. Sole proprietors can't afford 250k, let alone 100k.

Oracle profits billions per year and routinely lays off people making around 70k. So clearly even big corps don't have an appetite for random salaries on the payroll.

She needs a full- or part-time job to keep her going. You probably need a couple of part-timers who would work for little money and 1%. Maybe even offer another .5% if they're willing to work without salary. That way, you're not taking on employees too soon (usually the biggest p&l item, by far), someone else can pay their benefits and they'll be less survival-stressed. In those early days, you need to every penny used efficiently to keep executing and stay alive.

Just tell her you cant afford it. But btw, you'll never get someone who can make 225k to work for those prices.

If you're hiring remotely for part time work, reach out. Email is in profile.

There likely are better ways to spend $100k.

tell them it was never going to work.

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