How Many Developers Do I Need for a Startup?

• 20% of new ventures fail within the first two years.
• 45% of startups don’t survive the fifth year.
• 75% of new businesses in the U.S go out of business during the first 15 years.

While this is happening, it’s also worth noting that

Founders of startups like Pandora and Alibaba were able to create smashing products with zero technical expertise. Their success surely stems from the insight, knowledge, and grit that they possessed. But there’s also an equally crucial thing they all had.

It’s none other than the right talent, a.k.a. a great development team. 

This team could comprehend, create, and implement their vision. Their expertise is what ultimately led to their project’s success.

That being said, the decision to choose and hire developers for a startup isn’t easy. There’s no single answer to how many you need.

Keep reading as we guide you on key tenets that should govern your decision.

Pre-Seed Stage of Startup Development

Startups in the earliest stages are also called pre-seed startups. These businesses are still working on their MVP. They are still finding their target market. Startups in this stage don’t have a product-market fit. Your product can turn out to be completely different over time.

Formulating the product is the most crucial thing at this point. 

At this stage, there can be a sole developer for a startup in the form of the founder. However, this can only be the case if the founder has a technical background. If this isn’t the case, you’ll need to bring on board a technical leader. The person should be able to lead a small team.

Whether the founder takes on this role or hires someone else, there are some things they ought to master. It includes:

• The expertise of working with limited resources.
• Balancing managerial and individual contributor responsibilities.
• Adapting to market and product challenges.

What’s the Objective of the Development Team During This Stage?

For a pre-seed stage company, it’s crucial to build a robust MVP. Your offering should be able to raise money for your product. Whether alone or working with co-founders, focus on identifying your target audience. You can build a great MVP only if you have clear answers to the following:

1. Who is my target user?
2. What are they looking for?
3. What value does my product offer to them?

When you have the answers, outline the key features of your product. Then, direct your team (or yourself) to build the MVP.

Seed Stage of Startup Development

In the previous stage, you racked your brain to find your target market. The main focus was on building an MVP that raises money. In this stage, you have an initial product. Your market research is also complete. You’ve noticed a viable demand for your solution.

The decision to hire developers for startups in this stage depends on various factors. These are:

1. Product’s complexity
2. Time to market goals
3. Funding available

Typically, a team of 2-6 developers is enough. Besides them, you must also hire product managers and data scientists. 

Development Team of a Seed Stage Startup

A seed-stage startup’s development team should comprise the following:

Software Engineers

They develop and maintain software products. They perform all tasks like coding, testing, and debugging.

Product Managers

They outline the critical product features. Product managers also sequence development tasks. It means defining critical activities. This lets developers focus on them first. They use their analytical expertise to ensure that the product development reflects user needs.

Data Scientists

Data scientists analyze huge datasets for insights. Through this, they drive product improvement. The insights they extract help a startup with strategic decision-making related to their product.

What Is the Development Team Aiming to Achieve at the Seed Stage?

Your development team should focus solely on your MVP. Below are the critical goals at this stage.

1. Build a valuable MVP.
2. Release it in the shortest time possible.
3. Validate core assumptions. (About the problem you are solving with your product)
4. Act on early feedback to enhance the product.

Growth Stage of Startup Development

Startups in this stage have established themselves. Your product has become a market fit. At this stage, working on its scalability is pivotal. Startups in growth stage think of expanding into new markets. If you also plan to do so, modifying your product according to new preferences is critical.

This decision to hire developers for a startup at this stage holds a strong bearing on your success. A good team can boost your revenue. Contrarily, a bad or poorly assembled team can pour water over the success you’ve achieved so far.

A team of 10 to 50+ developers is needed for growth-stage startups. You can fall at any end of this range depending on the following:

1. Whether you have multiple product lines.
2. Your scaling infrastructure
3. Whether you are building out departments.

POINT TO NOTE

Growth-stage startups have the highest failure rates. This is because they fail to adjust it to the new sector of their target market. To avoid the same fate, it’s critical to regularly conduct market research. You must also be aware of local rules in the areas you are expanding into. This helps ensure compliance.

Development Team Structure of a Growth Stage Startup

Product Manager

Growth stage startups require at least 2–5 product managers. They outline the product strategy. This team sees to it that the product is built in a way that hits performance benchmarks. They work closely with developers to prioritize work.

UI/UX Designer

2–4 UI/UX designers are needed to design user flows, wireframes, and visuals. They perform usability testing. These specialists ensure that your product has a clean design and is easy to use.

Front-end Developer

Bringing on board skilled front-end IT specialists is crucial when hiring developers for a startup. You must have at least 4–10 of them. They create user interfaces for web or mobile apps. Front-end developers work in sync with backend specialists and designers. They ensure that the software delivers solid performance.

Back-end Developer

4–10 backend developers are required to build and maintain APIs, databases, and logic. Their work is crucial to ensure your product’s scalability and security. They integrate with third-party services and front-end developers to maintain optimum product performance.

Quality Assurance

When you hire developers for a startup, it’s critical to look for skilled QA staff. 2–5 specialists should be a part of your development team. They write and run tests. Their work ensures that the product features meet larger goals. The tests they run allow the startup to launch a bug-free product.

Data Analyst

1–3 data analysts drive strategic product-related decisions. They analyze product/user data. On its basis, they create insightful reports. Through them, a growth-stage startup can identify hidden patterns and trends in its target market. They can thus tap into new opportunities and propel product success.

What Should the Development Team Strive to Achieve at the Growth Stage

The main goal of your team at this stage is to scale the product rapidly. Below are the key things your team should work towards:

1. A strong focus on the product. This is critical to attract new users.
2. Validate the product’s value proposition. This ensures that the final piece meets the needs of your target market.
3. Building the product in a way that it can handle the increased use.
4. Optimize the product experience. They do this by evolving feature sets.
5. Employ an iterative process driven by user feedback.

How to Hire Developers for a Startup

Hiring developers for a startup is a crucial but challenging process. Below, we give you various strategies for effective hiring.

Top Platforms and Channels to Hire Skilled Developers

You can find skilled developers on various platforms. These are:

Job Portals

Job portals include sites like LinkedIn, Indeed, and Glassdoor. Post your job listing on all of them. You’ll soon find it getting filled by appropriate candidates.

Freelance Platforms

Hire developers for a startup using freelance platforms for short-term projects. Sites like Upwork, Toptal, and Fiverr are the top places to search for candidates.

Developer Communities

Websites like GitHub, Stack Overflow, and Reddit have many talented developers. They are looking for job opportunities. You can quickly connect with the right candidates through these communities.

Referrals

Use your professional network for referrals. Ask for recommendations from fellow startup owners.

Conduct a Rigorous Screening Process

You now have a list of suitable applicants. Assess them based on:

• Technical Skills: Conduct coding tests. You can also review their past work.
• Experience and Portfolio: Check what they have worked on in the past. It will enable you to decide whether their experience matches your project needs.
• Problem-Solving Abilities: Quiz your candidates on real-world development issues. This will allow you to see how they tackle problems.
• Communication Skills: A good candidate can understand your product’s vision. They should have strong communication skills to convey technical details.

Interview Candidates and Assess Them with Technical Tests

This step of hiring developers for a startup lets you judge the candidate technically and non-technically. It should involve:

• Live coding tests
• Challenging them with  complex coding problems
• Seeing how they work in a team

Discuss Salary and Benefits

You must give your developers decent compensation. Below are some things to consider:

• Market salary rates based on experience
• Additional benefits. These include flexible work hours, bonuses, or stock options

Finalize the Contract and Define Expectations Clearly

Now that you have hired developers, finalize the contract.

• Offer a detailed job contract. It should clearly outline their role, duties, and payment.
• Specify project milestones and timelines.
• Sign an NDA for confidentiality.

From One Developer to a Full Squad

A newly formed startup can kickstart things with a single developer. However, this soon gives way to a small team of four to seven developers. Regardless, a startup in any phase must have adequate developers to build a decent product. The exact number depends on your specific needs, budget, and timeline. Hiring skilled developers who know how to work with the latest tech stack will get your project rolling in the shortest time. This, in turn, will propel your product and eventually your business forward.

Frequently Asked Questions

1. How many engineers should a startup have?

In its earliest stages, a startup can survive on a single engineer. However, as it grows, it will need around 10 to 20 engineers. The team is critical to building a good MVP that enables the startup to gain market traction.

2. How many app developers do you need?

To build an app from scratch, you need a few critical people. The first of them is the front-end developer who creates the app’s user interface. The second is the backend developer. They handle databases and servers. Finally, you need a designer who ensures that the app is visually appealing and performs well.

3. How many developers should be in a development team?

There’s no direct answer to this question. Generally, a team of 5 to 7 developers works the best. This is because such a team can easily follow an agile workflow. They can constantly iterate on things like design, development, and testing. This paves the way for the project’s success.

4. Who should a startup hire first?

The prime focus should be on hiring a developer for a startup. This person should be able to handle intensive early development tasks. They should also be able to lead a team, which is the natural result of a startup’s growth.