Navigating Friendships and Hiring in Your Startup
Written on
Chapter 1: The Dilemma of Hiring Friends
When establishing a startup, the urgency to acquire resources often leads to the question: Should you recruit friends or family members?
This is a common dilemma that many entrepreneurs face, and it can significantly impact the success of a startup. Personally, I've encountered this issue, as one of my closest friends became an employee in my startup, while a past adversary once brought me into their venture. The complexities of these relationships can often be challenging.
Section 1.1: Friends vs. Employees
Recently, a question arose from an entrepreneur who successfully secured their first significant B2B contract and now faced the pressing need to expand their team. Fortunately, funding was not a concern since payment had already been received, but time was of the essence. Should this entrepreneur hire friends or acquaintances?
Rachel, one of our advisors, shared valuable insights derived from her experiences of hiring friends and family across various companies, highlighting both the positive and negative outcomes. However, I want to focus specifically on the inherent conflict between friendship and professional roles.
The crux of the issue lies in the assumption that the dynamics of a personal relationship can seamlessly transition into a professional one. Unfortunately, this rarely occurs. The survival of both the personal and professional relationships hinges on how well prepared you are for potential conflicts.
Subsection 1.1.1: The Rule of "Never"
While I generally avoid hiring friends, I acknowledge that exceptions exist under specific circumstances. These situations often come with a certain level of risk, akin to the inevitability of heavy traffic on a Friday evening.
It's crucial to ensure that friends or family members do not receive preferential treatment over qualified candidates. I trust that anyone reading this will act ethically, even when faced with unethical behavior from others.
Nonetheless, exceptions do arise. For instance, I would gladly rehire a friend from earlier experiences if budget constraints weren't an issue. I've also employed my children in side projects, primarily for their benefit, even if they believe they are contributing to my success.
Despite my willingness to assist friends, I recognize that working for me is challenging, and I wouldn't want to impose that on them. In urgent situations where talent is needed quickly, I might choose to disregard my usual rule. Familiarity with previous colleagues can provide a level of comfort and set expectations, but this often comes at a cost of missing out on unknown opportunities.
Section 1.2: Building Professional Relationships
Before fully committing to entrepreneurship and technology, I navigated a dual career as a technologist and musician, drawing from my father's experience as both a musician and entrepreneur. One of his key pieces of advice was:
"Never form a band with friends, but always cultivate friendships with your bandmates."
This principle can be applied in a professional context as well. The inclination to hire familiar faces stems from a desire to avoid uncertainties, yet the challenges often lie in the details.
Many of the individuals I would consider hiring are typically unavailable. Most of my acquaintances are successful and engaged in their own endeavors. If they truly wanted to work for me, they would proactively apply for open positions.
Why compromise that logic or risk damaging a friendship? Thus, the notion of “never” truly deserves consideration. It may seem like a straightforward solution to a complex issue, but aside from opportunistic scenarios, I struggle to identify many valid reasons to lean on familiarity when searching for the right talent.
Don't Make These Hiring Mistakes explores common pitfalls entrepreneurs face when hiring, including the challenges of mixing friendship with professional roles.
I Hired All My Friends to Work for Me (Bad Call?) discusses the implications and potential downsides of hiring friends in a startup environment.
If you found this article insightful or practical, consider subscribing to my newsletter at joeprocopio.com to stay updated on new posts. It’s concise and straight to the point.
For accessible, practical startup advice from experienced entrepreneurs, try a free 15-day trial of Teaching Startup. It offers valuable insights for less than 1% of traditional consultancy costs. Use invite code MEDIUM to receive half off your first month after the trial.