Hiring Advice EVERY Entrepreneur Needs to Know

Summary

• To find the right CEO or GM, utilize your network first, as relationships matter.
• If your network falls short, actively search on LinkedIn by targeting specific qualities and companies similar to yours.
• CEOs' equity typically ranges from 1-4% depending on their experience.
• Competitive CEO salaries range from $200k to $450k based on company size; use resources like payscale.com to validate.
• Actively search and reach out personally when hiring key roles to ensure you find the best fit.
• Validate prospective hires during interviews by questioning their fit across various critical areas.
• For executive hires, use a vesting schedule for equity to ensure commitment over time.
• Incorporate a cash incentive alongside equity, tied to both revenue growth and profitability to align goals.
• Determine if the hire is meant to manage daily operations or help grow the company, and hire accordingly.
• For roles like operations managers for single locations, prioritize character traits such as hard work, enthusiasm, and detail orientation.
• Sales aptitude is crucial for managers in physical locations to ensure revenue generation.
• Onboarding is vital for quick value production; consider a week-long intensive training for new hires.
• Focus initial training on core competencies that lead to early success and build strong relationships within the company.
• Evaluate your most successful employees' initial skill sets and determine what you can teach effectively to enhance your onboarding program.

Video

How To Take Action

I would suggest starting with your network. The people you already know can be a great source for finding the right CEO, GM, or any key personnel. Just ask around and leverage those relationships. If your network isn't fruitful, move to LinkedIn. Look for people who have experience in companies similar to yours. This direct approach often works well.

Next, for the CEO role, offer equity wisely. Professionals typically expect 1-4%. Use tools like payscale.com to determine a fair salary, which ranges from $200K to $450K depending on your business size. Ensure their interest aligns with your long-term goals by tying equity to a vesting schedule and including a cash incentive based on revenue growth and profitability.

When hiring any high-level executive, conduct thorough interviews to ensure they align with your company’s mission and culture. Don't offer immediate equity—instead, have a one-year cliff in the vesting schedule.

For managers at single locations, prioritize character traits such as hard work, enthusiasm, and attention to detail. Sales skills are crucial here. Look for candidates who are motivated and have an “owner-operator” mindset, as they'll likely contribute more effort and make your business more profitable.

Onboarding new hires effectively is also key. Implement a week-long intensive training program that immerses them in the company culture and their role. Focus the training on the core competencies they need for early success. Recurring weekly training sessions can help maintain and build this foundation.

Assess your most successful employees to refine your onboarding. Identify the skills they already had and what you were able to teach. Use this to create a structured training program aimed at rapidly getting new hires productive.

Good luck! Each of these steps is aimed at helping you grow without needing huge investments in time or money.

Quotes

"When hiring a CEO, look for a leader who has influence"

– Leila Hormozi

"Use your network to find the best candidates"

– Leila Hormozi

"Think about compensation as both art and science"

– Leila Hormozi

"The fastest way to train is to put effort into the onboarding"

– Leila Hormozi

"Hire for someone who can manage and grow, not just manage"

– Leila Hormozi