Design

Your First Hire

Start with a Generalist: The first hire should be a versatile individual who can handle a variety of functions. In the early stages, you need someone who can manage operations, finances, project management, and strategy.
Align with Long-Term Vision: Clearly outline how this individual’s role will evolve as the holding company grows. Consider if they’ll later specialize in a particular business unit or maintain a cross-functional role as you scale.
Avoid Over-Specialization: While specialized hires may be necessary down the line, early on, you need someone adaptable who can thrive in ambiguity and contribute to various areas.

Startup Mentality: The ideal candidate should have an entrepreneurial mindset—someone comfortable with uncertainty, capable of independent decision-making, and passionate about building from the ground up.
Problem-Solver: This person should not just execute but also strategize. They must have the ability to identify problems across different ventures and proactively come up with solutions.
Ownership Mentality: A strong sense of ownership is crucial. Since this hire may eventually take on leadership roles in specific ventures, they must feel like an integral part of the holding company’s growth.

Shared Vision: Make sure the candidate understands and aligns with the overall mission and vision of the holding company. Since they’ll have a major influence on future hires and culture, it’s essential that they buy into the long-term goals.
Resilience and Flexibility: The dynamic nature of holding companies demands resilience in the face of constant change. A strong first hire should be flexible, adaptable, and willing to pivot as priorities shift across different ventures.
Collaborative Spirit: Though the initial team may be small, fostering a collaborative culture from the beginning is vital. This hire must work well in cross-functional teams and communicate effectively across ventures as the company grows.

Broad Skill Set: The first hire should bring a range of skills, ideally with experience in areas like operations, finance, and business development. A generalist who can handle different aspects of the business, from strategic planning to execution, will be invaluable in the early stages.
Experience in Multiple Domains: Experience working in a variety of industries or roles is beneficial. This allows them to contribute to multiple ventures with diverse needs, a key advantage in the early stages of a holding company.
Ability to Build Processes: Your first hire should be able to set up systems and processes that scale. Whether it's financial reporting, operations management, or hiring, they must have experience with building infrastructure from scratch.

Equity as an Incentive: Offering equity can align the first hire’s success with the long-term success of the company. Since early-stage companies often have constrained cash flow, equity can be a powerful motivator for your first key hire to invest themselves in the company’s growth.
Create a Path for Leadership: The first hire should have a clear path to leadership within the holding company. As the company grows, they may take charge of managing specific ventures, and the potential for internal promotion will help keep them engaged long-term.
Incentives Linked to Multiple Ventures: Since a holding company often operates several businesses, structuring performance incentives around the success of the holding company as a whole (or multiple ventures) can motivate the hire to drive growth across all areas.

Referrals from Trusted Networks: Given the importance of the first hire, rely on trusted networks for recommendations. Early hires are best found through referrals from industry insiders or mutual connections who understand the specific needs of your holding company.
Seek Candidates with Diverse Backgrounds: While domain expertise is valuable, don’t limit your search to candidates from traditional startup or corporate backgrounds. Look for people who bring fresh perspectives from different industries or who have had entrepreneurial experiences of their own.
Involve Advisors and Investors in the Process: Engage your advisors or early investors to help identify and vet potential candidates. Their input can provide valuable insight into the long-term viability of the hire and their fit within your company.

Communicate Expectations Clearly: Be upfront about the challenges of working for an early-stage holding company. Highlight the need for flexibility, resilience, and the willingness to adapt as priorities shift between ventures.
Discuss Resource Limitations: Since early-stage holding companies typically operate with lean resources, communicate this clearly to the candidate. They should understand that they’ll need to be resourceful and operate in a scrappy, high-growth environment.
Emphasize the Growth Potential: While there are immediate challenges, emphasize the long-term opportunities. The right hire should be excited about the potential to shape the future of multiple ventures and grow with the company.