Hiring Executives in SaaS: Avoiding the Most Common Mistakes

Hiring your first (or next) executive is one of the most critical moves you’ll make as a SaaS founder. The right hire can accelerate growth, align teams, and bring operational discipline. The wrong hire? It can set you back months — or even years.

Having worked with SaaS companies across different growth stages, I see founders repeatedly fall into the same traps. Here are the four most common mistakes and how to avoid them.

1. Logo Blindness

It’s tempting to get starstruck by a CV that includes Salesforce, Microsoft, or Google. But here’s the problem: big tech execs are used to big tech resources. They’ve operated with established processes, huge budgets, and teams of specialists.

A start-up doesn’t have those luxuries. You need leaders who can wear multiple hats, roll up their sleeves, and build from scratch. A candidate who thrived in a 20,000-person enterprise may not be the same person who can thrive in your 20-person start-up.

What to do instead: Look for evidence of scrappiness. Have they built something from zero? Can they execute without a playbook or a large support team? Culture fit and adaptability matter far more than logos on a CV.

2. Hiring for the Wrong Stage

The VP who takes you from $1M to $10M ARR is not the same VP who can take you from $40M to $100M. The skill sets, mindset, and leadership styles are very different at each stage.

Early-stage execs are builders. They thrive on ambiguity, hands-on execution, and creating structure where none exists. Later-stage leaders excel at optimisation, scale, and managing complexity. Hiring someone who is brilliant at the wrong stage will frustrate both them and your business.

What to do instead: Be brutally clear about the stage you’re in. Hire for today and the next two years, not the endgame. Then be prepared to evolve your leadership team as you grow.

3. Over-Hiring Too Soon

Founders often get pressured — by investors, advisors, or their own ambitions — to hire “big” executives before the business is ready. The result? Sky-high salaries and costs before growth is actually there to sustain it.

An oversized exec team can also slow you down. Instead of nimble decision-making, you end up with layers of process and politics that stall momentum.

What to do instead: Be honest about whether the role is truly needed now. Could a fractional executive, interim hire, or senior manager fill the gap until growth catches up? Timing matters as much as talent.

4. Ignoring Culture Fit

Skills and experience matter, but culture fit is non-negotiable in a start-up. An executive who doesn’t buy into your mission, your values, or your way of working will quickly erode team morale.

A start-up culture requires resilience, adaptability, and humility. If your new hire expects the perks and predictability of big tech, they won’t last long.

What to do instead: Test for culture fit as rigorously as you test for skills. Ask about times they’ve had to work outside their job description. How do they handle uncertainty? How do they view failure? Hire for grit and alignment, not just a résumé.

Final Thought

Hiring executives isn’t about finding the “shiniest” candidate — it’s about finding the right fit for your stage, your culture, and your growth path.

The wrong hire will cost you time, money, and momentum. The right hire will feel like adding rocket fuel to your business.