During the last chapter, we looked at the core team, i.e. co-founders, C-suite managers, board members, etc. In this chapter, we will examine outsourcing partners and employees. We will consider why and when outsourcing is preferable or problematic, and also how you get the most out of it. In addition, we will study how to find the right candidates for your jobs, interview them, get them started, lead them, and finally motivate them with a sense of mission, communication, stock options, titles, bonuses, etc. We will also look at the tricky issues of management reshuffling as your company grows as well as at the unfortunate topic of layoffs.

Human resources is a big issue in any company, but it has unique opportunities and challenges in start-ups. Part of the reason for this is that these companies change significantly over time. How? Previously, we mentioned the Marmer stages regarding company development, but we also like another description dividing growth into (i) explorer, (ii) sprinter and (iii) marathon runner. A third one by venture capitalist Jeff Bussgang divides the start-up growth into three phases: (i) jungle, (ii) dirt road and (iii) highway.1 In the jungle, he explains, you fight your way through the market while searching for the most appropriate path. At this stage, you are most of all a path-finder. When reaching the dirt road phase, you know where to go, even though the road is a bit twisted and there are plenty of bumps along ...

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