Founding a business is an exciting journey filled with challenges and triumphs.
However, one area where many founders falter is managing the complex people issues that arise as they grow.
Whether it’s a young startup or a scaling business, the way you approach hiring and talent management has a big impact.
Here are the six most common mistakes founders make when it comes to people—and how to avoid them.
1. Overlooking Talent Density
It’s tempting to prioritise cultural fit when building a team, but this can backfire if it comes at the expense of talent.
Founders often make the mistake of hiring people they “like” instead of people who can push the business forward.
The key is to strike a balance—build a team of individuals who not only align with your values but also bring the skills needed to propel your business to the next level.
Pro Tip: Evaluate candidates based on a combination of technical ability and alignment with your company’s mission. It’s the mix of talent and purpose that creates momentum.
2. Rushing the Hiring Process
The pressure to grow quickly can lead to cutting corners in recruitment. Founders sometimes rush to fill positions without properly defining the roles or assessing candidates thoroughly.
This short-term fix often results in long-term headaches.
Pro Tip: Founder-led recruiting is crucial in the early stages. Take the time to define what success looks like for each role, and ensure your hiring process is rigorous and intentional.
3. Failing to Future-Proof
In the frenzy of building a business, it’s easy to focus on immediate needs and ignore long-term planning.
Neglecting to invest in the right people and systems early on can create bottlenecks as you scale.
Pro Tip: Think about the team you’ll need a year or two from now, not just the team you need today. Strategic hires made early can save you time, money, and stress down the line.
4. Hiring for Prestige, Not Value
Many founders fall into the trap of hiring expensive senior talent too soon. While these roles can add credibility, they often don’t deliver immediate value during the early stages.
Pro Tip: Focus on roles that generate tangible impact at your current stage. Whether it’s a marketing expert who can drive leads or a product specialist who can refine your offering, prioritise hires that directly contribute to growth.
5. Ignoring the Unsung Heroes
Conversely, some roles that may not seem glamorous—like an executive assistant or an operations manager—can be transformative for a founder. These hires free up your time and keep the business running smoothly.
Pro Tip: Invest in operational roles sooner rather than later. These hires can take the administrative load off your shoulders, allowing you to focus on what you do best.
6. Mismanaging Your Time
Founders often spread themselves too thin, getting caught up in activities that don’t move the needle. Whether it’s networking events or chasing vanity metrics, misplaced priorities can drain your energy and pull focus away from your team.
Pro Tip: Treat your time as a resource. Delegate effectively and spend the majority of your time empowering your team and addressing their needs.
Concluding Thoughts
Managing people is as much an art as it is a science. Avoiding these common mistakes can save you headaches, money, and missed opportunities as you grow your business.
Remember, your team is your greatest asset—treat it as such. By focusing on talent density, future-proofing, and strategic hiring, you’ll set your business up for sustainable success.
