When should a startup recruit a Chief Marketing Officer (CMO)?

Recruiting a C-Level for a young startup is a real challenge, no matter what department they head. But when it comes to recruiting your first Chief Marketing Officer (CMO), part of our company's success is at stake!

The CMO is usually one of the critical positions for a startup, responsible (in part) for growth, and everyone knows how vital growth is for a startup. Among other things, the CMO is responsible for increasing the company's revenues and profits, fostering engagement and loyalty, developing the brand image and directing the communications strategy.

A casting error would be very damaging, not only in terms of the cost of the recruitment itself, but more importantly in terms of lost revenue and slowed growth caused by a CMO unsuited to your needs.

The number one reason why startups fail is because they misread market demand (42% of cases - Forbes/CBInsights). So it's easy to see why startup founders, especially technical founders who are unfamiliar with the role, need to pay particular attention to choosing their first Chief Marketing Officer.

When and how should you go about this highly strategic recruitment? What type of profile should be targeted?

As a specialist tech recruitment firm, Skillink has had the opportunity to help a large number of startups recruit their executive committees at every stage of their development. Here's what we've learned from these collaborations about hiring the first CMO.

Since 2009, we've seen that the decision to hire a Chief Marketing Officer (CMO) is an important step for any startup. This decision depends not only on the company's stage of development, but also on factors such as market dynamics, the nature of the product and the startup's long-term vision.

When should you consider recruiting a CMO?

As the CEO of a start-up, you need to be aware of your organization's limits at all times, and have a clear idea of your ability to deal with problems as they arise.

Do you face multiple marketing challenges that you, as founder, are unable to overcome? 

This could well be the first sign that it's time to consider recruiting a Marketing Director.

But first, ask yourself if there are enough marketing issues to deal with. You need to think about the concrete problems this person will tackle.

You also need to ask yourself whether these marketing challenges justify full-time help. If it's a one-off marketing activity or a project of limited scope, it makes more sense to contract with a freelancer or agency - it'll be cheaper and more turnkey than hiring a full-time marketer.

But keep an eye on how these projects start to multiply. Managing all these freelancers can become a huge waste of time, and the cost can exceed the salary of someone who would take on some or all of this work in-house. What's more, you don't want your marketing efforts to look uncoordinated because you've been working with several freelancers who don't talk to each other.

Understanding the startup life cycle

Before embarking on the recruitment of a Chief Marketing Officer, it's essential to assess whether your company is really ready to welcome this strategic element to your team. CMO readiness largely depends on your company's current stage of growth, and clarifying this point can help you avoid wasting valuable time and resources. 

Every startup goes through different stages: ideation, validation, early traction, scaling and maturity. Each phase presents unique marketing challenges and opportunities.

Ideation and validation phases :

In these early stages, the focus is on product development and market fit. It may be premature to hire a full-time marketing director; it seems preferable to use consultants or marketing experts on a part-time basis.

Start of of traction: 

As the product begins to gain market acceptance, creating a brand and building a customer base become paramount.

A CMO can develop initial marketing strategies, focusing on customer acquisition and feedback. 

Scaling up:

 When a startup is ready to scale up, the value of a CMO becomes more pronounced.

Strategic marketing plans, large-scale campaigns and team building are essential at this stage.

A CMO with startup scale experience can be a valuable asset.

Maturity:

At this stage, the focus is on maintaining market share and exploring new sources of revenue.

An experienced CMO can identify avenues for innovation, brand building and market expansion.

Market dynamics and sector specificities

The nature of the market and industry also plays a key role in determining when to hire a CMO and who to target:

BtoC VS BtoB

The role of CMO can mean very different things to different companies. One of the biggest differences is often between BtoC and BtoB companies.

In consumer companies, the CMO is often responsible for direct user acquisition through means such as advertising and organic acquisition.

In B2B, the CMO is generally directly responsible for lead generation and sales activation, and must work closely with Sales to generate revenue and growth.

The right time to recruit depends on the nature of your go-to-market strategy: is it more marketing or sales-oriented? 

If you're trying to create a consumer brand, for example, it makes sense to recruit a marketer sooner. It's a different story for a SaaS product. Typically, you'll need to set up a repeatable sales model first, then add a layer of marketing to flesh out the storytelling and start using new channels to generate leads.

Highly competitive markets:

In highly competitive markets, startups are well advised to recruit a Chief Marketing Officer (CMO) at an early stage. This is crucial in the startup environment, where market dynamics are fast-moving and competition intense. A CMO appointed early on can provide a significant competitive advantage by rapidly establishing strong brand awareness and implementing an aggressive marketing strategy. This proactive approach is essential to winning market share and positioning the startup effectively against its competitors. The key is rapid brand positioning and a rigorous action planto effectively deploy high-ROI marketing initiatives aimed at standing out in a crowded market.

Product complexity and niche markets

In specialized markets, understanding customer needs is essential.

A CMO with experience of niche markets can prove invaluable for targeted marketing strategies.

Product complexity and customer journey also influence the decision.

For complex products, as in DeepTech, a CMO can help simplify and effectively communicate the value proposition. Understanding the customer journey is essential for effective marketing strategies, something an experienced CMO can offer.

The complex and scientific nature of some products requires a CMO with specific skills and understanding. He or she must be able to communicate (or lead an agency-managed communications project) complex concepts to a variety of stakeholders, including investors, industry professionals and users. Professional experience in your field of specialization seems to be a must. In HealthTech, for example, the CMO needs to understand the regulatory environment and ethical considerations specific to this universe.

DeepTech startups, which deal with highly scientific and often revolutionary technologies, need a marketing approach that balances technical precision with accessibility. The CMO must be able to translate complex concepts into compelling narratives that resonate with both specialized and broader audiences.

Given the innovative nature of these companies, the CMO must focus onEducational Marketing and Thought Leadership, and position himself as a thought leader. This means creating content and initiatives that inform the market about technology and its impact.

The CMO must also know how to build a team capable of managing the nuances of marketing complex technologies. This includes recruiting people who can understand and communicate scientific concepts effectively.

Finally, DeepTech CMOs must excel at building relationships with key industry players, including researchers, investors and potential customers.

Budgetary considerations and resource allocation

It's important to assess whether the startup is financially ready to support a full-time CMO and the associated marketing expenses. 

Budget constraints are a reality for most startups, and have fueled the"growth hacking" trend. They are often looking for inventive marketing profiles, capable of challenging established frameworks and adopting a strong ROI and metrics-based approach (as a source of performance and savings). However, the cost of hiring a CMO is not limited to salary: the overall marketing budget must also be taken into account.

It's also essential to ensure that the planned marketing expenditure matches the candidate's profile and expectations. If a candidate is used to managing a large team and a comfortable marketing budget, while your startup has no team and a limited budget, the success of the recruitment seems compromised.

Nevertheless, a small budget doesn't necessarily rule out the possibility of hiring a full-time, in-house marketing expert. If marketing efforts are focused on content or community, for example, it may make sense to hire before you have a lot of money to spend.

Hiring a CMO: timing and requirements

Timing is crucial, as is finding the right person with the right skills:

Startups early-stage  

When it comes to start-ups, especially those in the pre-seed or early-stage phases, the support of a CMO is probably not necessary at this stage. It makes more sense to concentrate your efforts on building a solid foundation for your products and/or services. During these initial phases, your priorities should be to develop a compelling offer, conduct research, understand your target market and fine-tune your marketing framework.

This is the ideal time to secure lower-level marketing positions. Filling specialist positions will be most important at this stage, as you'll need help to create and implement various marketing campaigns and other actions. Positions to be filled at this stage vary according to your funding level, from pre-seed to Series A.

Finding candidates capable of moving from ideation to execution is crucial in the start-up phase, and the person you hire can make or break your business. So manage this phase carefully, and don't be afraid to wait to find the right candidate.

A hands-on, agile profile comfortable with uncertainty seems a good option. The focus should be on building the fundamentals, which requires a mix of creativity and strategic thinking to conduct market research, define targets and establish brand identity. The profile needs to be able to define an impactful initial marketing strategy, often with limited resources, and be comfortable with a high level of uncertainty and rapid iteration. At this stage, the real question is: Do I really need a CMO, or just an expert in a specific area of marketing, with great potential and the ability to adapt constantly? 

Whatever marketing profile you decide to recruit, given that it is, by definition, your link to the market, cultural fit is the most crucial capability to assess at this stage of your start-up's development. Make sure the candidate aligns with your company's culture and values. A CMO or other marketing specialist who fits in well with your team can have a significant impact on motivation, productivity and, ultimately, the development of your business.

Your first marketing hires should therefore be skilled in the areas you believe will have the greatest impact on your company's growth. The return on investment of this recruitment must be clearly defined.

If you decide to recruit a CMO at an early stage, probably around your Series A, also bear in mind that the CMOs who will have the most impact on your business are those who are able to challenge the founders and "educate" their boards on the benefits of long-term marketing investments, while managing day-to-day emergencies and driving KPIs.

You also need to consider the role of external partners and suppliers in your marketing organization. Do you currently use external agencies, technology providers or freelancers to support your marketing efforts? If so, you need someone who can collaborate effectively with these parties to optimize your marketing campaigns.

So, as long as you're prepared to set realistic expectations and use your resources wisely, you can't know what you'll be able to achieve with a CMO on your team. If you decide you're not ready to commit yet, you can simply focus your efforts on lower-level positions as you progress to the scaling phase.

Startups in growth phase

When a start-up enters its growth phase, often marked by a Series A or even B financing round, the CMO's role shifts to intensifying marketing efforts. This involves optimizing marketing channels, refining acquisition strategies and building a team. Decision-making based on data analysis becomes crucial, and the CMO must be able to use data to refine and target marketing efforts. Likewise, the ability to effectively manage a growing team and budget can make all the difference.

At this stage, a CMO must have proven experience in structuring and intensifying marketing efforts. Since you probably don't yet have a marketing team (or one that's not that big and loosely structured), the CMO needs to have significant experience in building and leading successful marketing teams. But profitable, sustainable growth is preferable to unbridled growth, and is a point that investors pay close attention to. Candidates who have not only increased sales, but done so profitably, will be particularly sought after. CMOs from funded companies who have focused on intelligent growth will certainly have an advantage over candidates accustomed to large budgets to fuel growth at all costs.

The expansion phase marks a turning point in a company's development: it's the moment when your company has overcome the hurdles of the launch and established itself firmly in the market. Now you need to be ready to seize opportunities, expand your customer base and increase your sales. This is the ideal time to start your search for a CMO, so that he or she can lead you to sustainable growth.

At this stage, it's important to identify your specific expansion objectives, which can vary considerably depending on your business model, market conditions and industry sector. Often the underlying objective remains to increase sales, so it's important to identify your revenue streams and optimize your spending to ensure, among other things, that you get the most out of your investment in marketing campaigns.

The expansion phase is an exciting time for CEOs, and having an experienced CMO on the team to lean on takes a lot of the pressure off. When you have someone with strategic vision who can tackle complex marketing and expansion challenges, you're better equipped for growth and sustainable success. 

Conclusion 

Recruiting a CMO is a crucial decision for any start-up, no matter when it takes place. That said, it seems generally accepted that the period leading up to a Series A fund-raising round is often a good time to ask the question.

Successfully recruiting the CMO who will grow your business effectively requires a balance between timing, market understanding, product-market fit and overall corporate strategy. The right CMO can accelerate a startup's growth trajectory, build a powerful brand and help navigate the complexities of the marketplace. Startups need to assess their current position against their growth ambitions to make this critical decision effectively.

It's a job you need to anticipate and prepare for. What's more, marketing encompasses many issues, so it's important to define the 2 or 3 key subjects for which your CMO will be particularly responsible in order to bring you maximum value, bearing in mind that omnipotent profiles are rare and can take a long time to find.

It might be appropriate to look for someone with around six years' experience as your first marketing manager. Someone who is versatile, always in touch with the operational side of the business, up to date with the latest trends and developments in marketing tools and methods, but who has also become an expert in one (ideally two) of the marketing areas where you need the most help. An excellent candidate at this level will move your business forward quickly, while developing his or her own skills and possibly moving into a management position in the future. If he's not ready to take that step, you can always hire someone to supervise him when the time comes.

When it comes to giving the right title, you might consider starting with"Head of marketing". Be sure to give the title of CMO to the right person; giving it too early may be restrictive in the future. You need someone who is still sufficiently motivated to seek further development and responsibility if they perform well. 

Being the first marketing hire at a startup isn't about recruiting and managing a team right away - it's about being a single player. It's a demanding job. If a candidate has been the first marketing manager elsewhere, make sure they're still keen to start again "from scratch".