Hiring your First Product Manager

When you’re running a small startup, you may ask yourself when to hire your first product manager and what you should look for in the candidate. This is a question I get from founders fairly often.

Startup founders in technology companies usually are great at least one of the following things; making stuff and selling stuff. Few individual founders are great at both, but most successful founding teams are excellent at both.

In the early stages of your startup, when you are trying to find product-market fit, you do not need a product manager. As founders (at least one of) you should be the product people at the company – obsess about the product, spend time with customers, drive the product roadmap, etc.

When you have found product/market fit and you are starting to scale, is when you should hire your first product manager. This person can run the day to day product development and allow you (as the founder) to step back and focus on fundraising, product strategy, hiring, and important partnerships. This person should bring you significant leverage. 

Many founders think they need a ‘Head of Product’ first – I don’t think that is right. I would not hire a super experienced product person who expects high compensation, owning the entire product vision and strategy or brings in ‘this is how we do things’ from their background.

Instead, I would look for an early/mid stage in their career, who is a strong executor and is high potential and can grow with the company. This person should be passionate about your product, users and you should be excited about mentoring and working closely with them (as founder/CEO). 

If this person ends up doing a great job at the execution, they can take on more product strategy from you as you build mutual trust and respect. If they are not able to scale in this role, you can bring in more experienced folks to lead the organization. Replacing a product manager is much easier and less expensive than a head of product.

Tips on startup decks and pitching

I’ve been investing in startups across the globe for the last 10 years and seen a lot of pitch decks that vary significantly in quality.

Particularly when you come from a ‘non-traditional background’ or are an entrepreneur in an emerging market it’s a source of differentiation to have a high quality deck for investors.

Here are a few of my favourite resources for entrepreneurs which are a mix of practical advice and inspiration:

During your actual pitch I always like to learn about the ‘why’ of the founding story (authenticity and energy help a lot), and it also helps to be on top of all the important metrics and growth rates.

This tends to separate the good from the great founders during the fundraising process.