Should a Remote Startup Hire Full-time Employees or Contractors?

Every Friday, we’re answering your questions about business, startups, customer success and more.

Happy Friday!

This week’s question comes from Lincoln Parks, who asks:

I actually did neither when I first started Groove. I hired an agency to build the first iteration of the product.

After that, I began building out our own team. First with part-time contractors, and then I hired those that fit best as full-time employees.

The answer to this question isn’t really one-size-fits-all; it’s more about what you can afford, and who you can find.

If, at the very beginning, you find an amazing developer who’s only willing to work on a project basis, you might consider hiring them to build your product.

If you can’t swing a full-time salary just yet, then obviously you only have the contractor option available to you.

If you have the luxury of being able to choose one or the other, I’ll say that I prefer the trial-to-full-time model, where a new employee does a trial project with us for a couple of weeks (or a bit longer if they’re already employed and need to do the trial project on nights and weekends), and if they’re a fit, we bring them on full-time.

Ultimately, I’m not sure there’s a right or wrong answer here in the beginning. Once your business is validated and you begin to build your team, then culture begins to play an important role in your team structure, and I think full-time is the way to go. You can’t grow a successful and sustainable long-term business with a team of mercenaries. Not that I’ve seen, anyway.