23:23
SilverPeople
Building a new business unit requires more than increasing headcount. Companies need to identify the critical roles and capabilities required to establish the unit, generate revenue, manage operations, and scale sustainably.
Hiring too many people too early can increase costs, while delaying critical hires can slow down the entire business unit. A structured hiring strategy helps companies balance both risks.
1. Start With Business Leadership
The first priority is often a leader who can take ownership of the new business unit.
Depending on the organization, this could be a:
- Business Unit Head
- General Manager
- Country Head
- Functional Director
- P&L Leader
This person can help define the operating model, team structure, objectives, and subsequent hiring requirements.
2. Hire the Core Functional Team
Once leadership is established, companies should identify the functions essential to the business model.
Depending on the industry, these may include:
- Sales and business development
- Product
- Technology
- Operations
- Finance
- Marketing
- Customer success
- Human resources
The exact structure should be based on the business model rather than simply replicating another department.
3. Prioritize Revenue-Critical Roles
If the new business unit depends on generating revenue quickly, commercial roles may need to be prioritized.
For example:
B2B business: Sales leadership, account management and business development.
Technology business: Product, engineering and technical leadership.
Consumer business: Marketing, growth, operations and customer experience.
The hiring sequence should therefore reflect how the business creates value.
4. Identify Specialized Talent Early
Some positions can be difficult to fill because they require niche industry knowledge or specialized technical capabilities.
Examples include:
- AI and machine learning specialists
- Cybersecurity professionals
- Product leaders
- Regulatory specialists
- Industry-specific consultants
- Senior technology leaders
These searches can take longer, so companies should begin them early rather than waiting until the business unit is already operational.
5. Build Support Functions at the Right Time
Not every support role needs to be hired on day one.
Functions such as HR, finance, administration and legal can initially be centralized or shared with the existing organization, depending on business requirements.
As the unit grows, dedicated teams can be created.
6. Create a Phased Hiring Plan
A practical structure can look like:
Phase 1 – Build: Leadership + critical specialists
Phase 2 – Launch: Core functional + revenue teams
Phase 3 – Scale: Operational and support teams
Phase 4 – Optimize: Additional specialists based on business performance
This helps align workforce planning with actual business growth.
Key Insight
There is no universal list of roles that every company should hire first. The right hiring sequence depends on the company's business model, industry, revenue strategy, technology requirements and growth objectives.
The important question is not simply:
“Which roles should we hire?”
It is:
“Which capabilities are essential for this business unit to start, operate and scale?”
A capability-based approach can help organizations make more deliberate hiring decisions and avoid unnecessary headcount.
FAQs
Who should be the first hire for a new business unit?
Often a business leader or functional leader who can establish the unit's strategy and operating structure.
Should companies hire the entire team before launching?
Not necessarily. A phased hiring strategy can allow the organization to build the team as business requirements develop.
When should companies use external recruitment support?
External recruitment partners can be useful for specialized, leadership, confidential or high-volume hiring requirements.
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