11 things to consider when planning Human Resources for your startup

Having the right set of people and HR strategy can be the difference between a successful startup and a failed one, a funded startup and one which gets rejected by investors all the time. While planning the business informally or formally (in form of Business Plan), a startup founder needs to consider 11 key things which are listed below.

  1. Skills: Does the top management team have complementary skills? At the bare minimum one founder knows how to build and other how to sell.
  2. Structure: How will your business be organized? What does your organizational chart look like? It is important to have clear roles and responsibilities rather than having everyone work on everything.
  3. Ownership: What is the ownership structure of your company?
  4. Advisors: Who will be your Advisors? How will you compensate them – in equity or cash? Do they fill any skill gap or experience gap in your team?
  5. Responsibilities: Who are the key managers? What will be their duties and responsibilities?
  6. Resource Gap: If there is a key position that is not yet filled, what are your plans to do so.
  7. Headcount Projection: How will the company ramp up its team in future? It should be consistent with the average revenue / business volume per employee in your business.
  8. Style & Culture: What will be your company’s management style & culture? It should be aligned with the mission statement and the overall business strategy.
  9. External Service Providers: service providers your business may consult or from whom you will obtain additional services, who are not a part of your internal staff. These may include:
    • Corporate attorney
    • Accounting firm
    • Application service providers
    • Professional service firms
    • Insurance agent
    • Bankers
    • Consultants
  10. Payroll: How much compensation will you pay for each role? By what % will it increase year-on-year?
  11. Salary Structure: How will the compensation be structured – fixed versus variable pay? Stock Options / Equity?

Best approach is to consider all these aspects well in advance and document the same in your Business Plan. PlanThyBusiness.com can help in preparing top class business plan, pitch deck and in connecting to investors.

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