Hiring in early-stage B2B tech firms is like navigating a minefield. I’ve seen it time and again – founders under pressure from VCs, rushing to hire without a clear strategy, and ultimately burning through cash on the wrong people at the wrong time.
The truth is that the failure rate for early-stage B2B companies is brutally high. And the moment the investment lands, you’re told to “go out and hire.”
But here’s where most founders get it wrong. They dive too quickly into hiring without understanding exactly who they need and why.
The Diagnostic: Your Hiring Blueprint
Think of a Go-to-Market (GTM) diagnostic like an architectural blueprint. You wouldn’t start building a house by randomly throwing bricks down, would you? The same logic applies to building your team. Before you spend a single pound on hiring, you need a comprehensive plan.
Why Pre-Investment is the Perfect Time
Counterintuitively, the best time to do this diagnostic isn’t after you’ve got funding – it’s before. When the cash lands, there’s immense pressure to start “doing stuff.” But taking a step back and truly understanding your team’s needs? That’s gold.
I recommend sitting down with someone who can probe and challenge your thinking. This could be a fractional CRO, an advisor, or even a sharp team member who isn’t afraid to ask the tough questions.
What a Solid GTM Diagnostic Looks Like
Here are the critical elements you need to unpack:
- Current Business Snapshot Understand where your business stands today. What are your current targets? What’s your Average Contract Value (ACV)? How long are your sales cycles? These aren’t just numbers – they’re your roadmap.
- Opportunity Allocation One of the biggest mistakes founders make is thinking sales gets all the glory. Break down your opportunities across functions – marketing, customer success, sales. When you distribute the load, those big, scary numbers suddenly become manageable.
- Win/Loss Analysis Dive deep into why you’re winning and losing opportunities. Are you losing deals to competition? Are you struggling because you’ve only engaged one stakeholder per opportunity? Your CRM should be a goldmine of insights.
Real-World Examples of Diagnostic Insights
I’ve seen founders reach out thinking they need an account executive, when what they actually needed was a customer success manager. Why? Because they were losing customers out the back end faster than they could bring new ones in.
In another case, a founder wanted to hire an account executive for a 100% inbound business. Our recommendation? Take that £80K and pour it into marketing instead of forcing a sales hire that doesn’t make sense.
The Skill Set Puzzle
Here’s where it gets nuanced. An “account executive” isn’t a one-size-fits-all role. The skills you need depend on multiple factors:
- Your company’s stage
- Sales complexity
- Average contract value
- Sales motion (transactional vs. consultative)
Your diagnostic should make it “glaringly obvious” not just who to hire, but exactly what skills that person needs to bring to the table.
The High Stakes of Getting This Wrong
The graduation rate from seed to Series A is decreasing every single day. Making the wrong hires isn’t just costly – it can be the life and death of your business.
Your Diagnostic Checklist
- Understand current business metrics
- Map out opportunity allocation
- Analyse win/loss patterns
- Define precise skill requirements
- Create a targeted job description
- Validate timing and need
The Golden Rule: Slow Down to Speed Up
My biggest piece of advice? Slow down first to speed up later. Spend two hours in a whiteboarding session with your leadership team. Brainstorm, challenge assumptions, and create a clear blueprint.
When you’ve done this work, that £50-60K hire suddenly feels less like a risky bet and more like a strategic investment.
Final Thoughts
Hiring isn’t about filling seats. It’s about building a machine that can reliably generate growth. Your GTM diagnostic is that machine’s blueprint. Do the work upfront and you’ll set yourself, and your business, up for long-term sustainable success.
Author: Matthew Codd
I’m Matthew, I have 15 years of commercial leadership experience, helping VC-backed B2B technology companies scale revenue and transition from founder-led sales.
I use my experience to help early-stage start-ups with GTM expertise, sales best practice, and hiring insights.
I co-founded Cosmic Partners in 2022. We are SaaS sales recruitment specialists for VC backed B2B tech companies.
