August 8, 2021 7 minutes readEntrepreneur contributors do not necessarily agree with the opinions expressed.My clients often ask me when they should hire a CTO. I am the founder of a low code development platform startups use to create web and mobile apps.This question doesn't have the same answer for everyone. This depends on whether the founders are technical or not, and if they have developed a roadmap or MVP.Before I can give any guidance, I ask them a few questions about the current situation.What amount of funding are they currently using? And what funding plans do they have for the next 24 months.Are they currently able to appoint a tech leader? What is the current composition of their team?What is the current process for gathering product requirements and prioritizing them? Is the CTO required to also lead this?Are they planning to hire an outsourced or in-house team?What is the engineering challenge of their product?These questions will help you determine whether a CTO is necessary or possible. If the company lacks capital, has a small market (less than $1 billion), and has limited upside, it may be difficult to hire a chief technology officer (CTO) unless he/she becomes a co-founder and holds a significant equity stake.What can a CTO do to make a difference in the world?There are many reasons why you might hire a CTO. The most important is:If your company has significant technical requirements, many CTOs may be able to assist. However, the real impact of their work is in the implementation of processes, tools, and a team to get it done quickly, efficiently, and scaleably. This applies regardless of whether the engineering team works in-house or outsourced.Experienced leaders are required to be decisive. A CTO is more than just a leader for the IT department. Because they are used to working at the intersection between business and technology, they can steer the direction for a company.A large-scale technology upgrade may be required. If your productivity is being affected by obsolete technology, a skilled CTO can help you identify the problem and guide your team to the right tech stack.If an important constituent requires a CTO, it is not unusual for a company's initial tech team to have difficulties when trying to grow to the next level. This problem is often noticed by boards and investors who comment on it. This problem can be solved by bringing in a tech leader with a track record of growth. This move will also satisfy potential clients who might need a competent CTO to help them make a purchase decision.You will need to understand the problem you are trying to solve and have an idea of what you want the candidate to do before you start the process of recruiting. You might hire someone who isn't a good fit for the job, even though they look great on paper.Related: Six Tips for Women in Business: Finding Your Way to the C-SuiteAre you in need of a CTO at the moment?Common misconception is that a CTO must be an experienced developer who is able to take on new challenges. Although some people may be able to meet this expectation, it is a narrow view of what a CTO can and cannot do.It is important that founders avoid giving excessive titles to people who don't have the skills or experience necessary to lead a company. People mistakenly assume that coders are good leaders. Many great coders don't make great managers.Another important point is that just because someone is a senior architect or developer, it doesn't necessarily mean they are ready to become a CTO. Although technical knowledge is a part of the CTO's offering, it is not what you really get with a CTO. What you are actually getting is executive leadership skills and expertise over time.Agil8 research shows that CTOs have an average of 24 years experience in the workplace. CTOs will have held eight positions in four companies. They won't spend more than five years in any one of these roles, but they will not have spent less than one year in each. CTOs are visionaries with this experience, who set long-term goals and think out of the box.This is crucial because many startups have started the search for a chief technology officer (CTO) because they needed someone to handle technical issues. A VP of Engineering would be a better choice if this is your primary need. The engineering VP is responsible for ensuring that everything runs smoothly, deadlines are met, and the team works efficiently.Pre-Series A companies will benefit from a VP Engineering. It is only necessary to occasionally step in and help the development team understand the requirements, as well as educate the founders about the next steps. After an A or B round is raised, however, a company will require someone who is less concerned about the day-to-day operations, and more focused on the bigger picture.Related: 3 Steps to Adapt Your C-Suite For The Digital EraWhat are the traits of a great CTOIt is important to determine how skilled a person is in their role as a strategic enabler and technical partner to the company's leadership team when interviewing people. You should confirm that they are familiar with the essential processes required to run a successful IT company and how to efficiently and effectively manage them.Ask them if they are able to present the company's technical vision and execution plans to clients, industry analysts, and institutional investors. Ask how current they are on tech trends. You should verify that they have strong communication skills. Also, assess their ability to hire, fire, and manage employees without micromanaging.You will also need to assess the performance of candidates in these areas, along with their technical and business acumen.Vision - Your CTO must be able envision unique solutions for any business problem. It is crucial to be able to invent on the fly. Ask candidates to give examples of innovative solutions they have found for problems.Your CTO must be able to find unique solutions for any business problem. It is crucial to be able to invent on demand. Ask candidates to give examples of innovative solutions they have found for problems. Technical partnership - The CTO is a true technical partner for the CEO and company's leadership team. They can serve as a reliable resource and trusted advisor to the company's technical requirements.CTOs become true technical partners for the CEO and company's leadership teams. They can serve as a reliable resource and trusted advisor to the company's technical requirements. Vision is not the only thing that matters. Creativity is a key component of creativity. Open-mindedness and flexibility are key to success in determining the best way to apply new ideas and technology. Your company will benefit from a CTO who sees the potential in opportunities not seen by others.Vision is essential. Open-mindedness and flexibility are key to success in determining the best way to apply new ideas and technology. Your company will benefit from a CTO who sees the potential in opportunities not seen by others. A CTO should be a hustle-type person. It is important to look for someone who doesn't accept the status quo. Try to understand how the candidates have helped companies move forward during your interviews.CTOs are responsible for looking to the future. Their job is to see where the product will be in five to ten year's time. It's easy to see it this way: A VP Engineering is like your MVP (short term thinking), while a CTO (long-term planning) is more like a roadmap.It is not necessary for every startup to have a CTO from the beginning. It is important to have a clear product vision, drive early traction and then hire the right person to take the company to new heights.Related: How women can finally bridge the gender gap in the C-Suite
