| name | team-composition-analysis |
| description | This skill should be used when the user asks to "plan team structure", "determine hiring needs", "design org chart", "calculate compensation", "plan equity allocation", or requests organizational design and headcount planning for a startup. |
| version | 1.0.0 |
Team Composition Analysis
Design optimal team structures, hiring plans, compensation strategies, and equity allocation for early-stage startups from pre-seed through Series A.
Overview
Build the right team at the right time with appropriate compensation and equity. Plan role-by-role hiring aligned with revenue milestones, budget constraints, and market benchmarks.
Team Structure by Stage
Pre-Seed (0-$500K ARR)
Team Size: 2-5 people
Core Roles:
- Founders (2-3): Product, engineering, business
- First engineer (if needed)
- Contract roles: Design, marketing
Focus: Build and validate product-market fit
Seed ($500K-$2M ARR)
Team Size: 5-15 people
Key Hires:
- Engineering lead + 2-3 engineers
- First sales/business development
- Product manager
- Marketing/growth lead
Focus: Scale product and prove repeatable sales
Series A ($2M-$10M ARR)
Team Size: 15-50 people
Department Build-Out:
- Engineering (40%): 6-20 people
- Sales & Marketing (30%): 5-15 people
- Customer Success (10%): 2-5 people
- G&A (10%): 2-5 people
- Product (10%): 2-5 people
Focus: Scale revenue and build repeatable processes
Role-by-Role Planning
Engineering Team
Pre-Seed:
- Founders write code
- 0-1 contract developers
Seed:
- Engineering Lead (first $150K-$180K)
- 2-3 Full-Stack Engineers ($120K-$150K)
- 1 Frontend or Backend Specialist ($130K-$160K)
Series A:
- VP Engineering ($180K-$250K + equity)
- 2-3 Senior Engineers ($150K-$180K)
- 3-5 Mid-Level Engineers ($120K-$150K)
- 1-2 Junior Engineers ($90K-$120K)
- 1 DevOps/Infrastructure ($140K-$170K)
Sales & Marketing
Pre-Seed:
- Founders do sales
- Contract marketing help
Seed:
- First Sales Hire / Head of Sales ($120K-$150K + commission)
- Marketing/Growth Lead ($100K-$140K)
- SDR or BDR (if B2B) ($50K-$70K + commission)
Series A:
- VP Sales ($150K-$200K + commission + equity)
- 3-5 Account Executives ($80K-$120K + commission)
- 2-3 SDRs/BDRs ($50K-$70K + commission)
- Marketing Manager ($90K-$130K)
- Content/Demand Gen ($70K-$100K)
Product Team
Pre-Seed:
Seed:
- First Product Manager ($120K-$150K)
- Contract designer
Series A:
- Head of Product ($150K-$180K)
- 1-2 Product Managers ($120K-$150K)
- Product Designer ($100K-$140K)
- UX Researcher (optional) ($90K-$130K)
Customer Success
Pre-Seed:
Seed:
- First CS hire (optional) ($60K-$90K)
Series A:
- CS Manager ($100K-$130K)
- 2-4 CS Representatives ($60K-$90K)
- Support Engineer (technical) ($80K-$120K)
G&A (General & Administrative)
Pre-Seed:
- Contractors (accounting, legal)
Seed:
- Operations/Office Manager ($70K-$100K)
- Contract CFO
Series A:
- CFO or Finance Lead ($150K-$200K)
- Recruiter ($80K-$120K)
- Office Manager / EA ($60K-$90K)
Compensation Strategy
Base Salary Benchmarks (US, 2024)
Engineering:
- Junior: $90K-$120K
- Mid-Level: $120K-$150K
- Senior: $150K-$180K
- Staff/Principal: $180K-$220K
- Engineering Manager: $160K-$200K
- VP Engineering: $180K-$250K
Sales:
- SDR/BDR: $50K-$70K base + $50K-$70K commission
- Account Executive: $80K-$120K base + $80K-$120K commission
- Sales Manager: $120K-$160K base + $80K-$120K commission
- VP Sales: $150K-$200K base + $150K-$200K commission
Product:
- Product Manager: $120K-$150K
- Senior PM: $150K-$180K
- Head of Product: $150K-$180K
- VP Product: $180K-$220K
Marketing:
- Marketing Manager: $90K-$130K
- Content/Demand Gen: $70K-$100K
- Head of Marketing: $130K-$170K
- VP Marketing: $150K-$200K
Customer Success:
- CS Representative: $60K-$90K
- CS Manager: $100K-$130K
- VP Customer Success: $140K-$180K
Total Compensation Formula
Total Comp = Base Salary × 1.30 (benefits & taxes) + Equity Value
Fully-Loaded Cost:
- Base salary
- Payroll taxes (7.65% FICA)
- Benefits (health insurance, 401k): $10K-$15K per employee
- Other (workspace, equipment, software): $5K-$10K per employee
Rule of Thumb: Multiply base salary by 1.3-1.4 for fully-loaded cost
Geographic Adjustments
San Francisco / New York: +20-30% above benchmarks
Seattle / Boston / Los Angeles: +10-20%
Austin / Denver / Chicago: +0-10%
Remote / Other US Cities: -10-20%
International: Varies widely by country
Equity Allocation
Equity by Role and Stage
Founders:
- First founder: 40-60%
- Second founder: 20-40%
- Third founder: 10-20%
- Vesting: 4 years with 1-year cliff
Early Employees (Pre-Seed):
- First engineer: 0.5-2.0%
- First 5 employees: 0.25-1.0% each
Seed Stage Hires:
- VP/Head level: 0.5-1.5%
- Senior IC: 0.1-0.5%
- Mid-level: 0.05-0.25%
- Junior: 0.01-0.1%
Series A Hires:
- C-level (CTO, CFO): 1.0-3.0%
- VP level: 0.3-1.0%
- Director level: 0.1-0.5%
- Senior IC: 0.05-0.2%
- Mid-level: 0.01-0.1%
- Junior: 0.005-0.05%
Equity Pool Sizing
Option Pool by Round:
- Pre-Seed: 10-15% reserved
- Seed: 10-15% top-up
- Series A: 10-15% top-up
- Series B+: 5-10% per round
Pre-Funding Dilution:
Investors often require option pool creation before investment, diluting founders.
Example:
Pre-money: $10M
Investors want 15% option pool post-money
Calculation:
Post-money: $15M ($10M + $5M investment)
Option pool: $2.25M (15% × $15M)
Founders diluted by pool creation before new money
Organizational Design
Reporting Structure
Pre-Seed:
Founders (flat structure)
├── Contractors
└── First hires (report to founders)
Seed:
CEO
├── Engineering Lead (2-4 engineers)
├── Sales/Growth Lead (1-2 reps)
├── Product Manager
└── Operations
Series A:
CEO
├── CTO / VP Engineering (6-20 people)
│ ├── Engineering Manager(s)
│ └── Individual Contributors
├── VP Sales (5-15 people)
│ ├── Sales Manager
│ ├── Account Executives
│ └── SDRs
├── Head of Product (2-5 people)
│ ├── Product Managers
│ └── Designers
├── Head of Customer Success (2-5 people)
└── CFO / Finance Lead (2-5 people)
├── Recruiter
└── Operations
Span of Control
Manager Ratios:
- First-line managers: 4-8 direct reports
- Directors: 3-5 direct reports (managers)
- VPs: 3-5 direct reports (directors)
- CEO: 5-8 direct reports (executive team)
Full-Time vs. Contract
Use Full-Time for:
- Core product development
- Sales (revenue-generating roles)
- Mission-critical operations
- Institutional knowledge roles
Use Contractors for:
- Specialized short-term needs (legal, accounting)
- Variable workload (design, marketing campaigns)
- Skills outside core competency
- Testing role before FTE hire
- Geographic expansion before permanent presence
Cost Comparison
Full-Time:
- Lower hourly cost
- Benefits and overhead
- Long-term commitment
- Cultural fit matters
Contract:
- Higher hourly rate ($75-$200/hour vs. $40-$100/hour FTE equivalent)
- No benefits or overhead
- Flexible engagement
- Easier to scale up/down
Hiring Velocity
Realistic Timeline
Role Opening to Hire:
- Junior: 6-8 weeks
- Mid-Level: 8-12 weeks
- Senior: 12-16 weeks
- Executive: 16-24 weeks
Time to Productivity:
- Junior: 4-6 months
- Mid-Level: 2-4 months
- Senior: 1-3 months
- Executive: 3-6 months
Planning Buffer
Always add 2-3 months buffer to hiring plans.
Example:
If need engineer by July 1:
- Start recruiting: April 1 (12 weeks)
- Productivity: September 1 (2 months ramp)
Budget Planning
Compensation as % of Revenue
Early Stage (Seed):
- Total comp: 120-150% of revenue (burning cash to grow)
- Engineering: 50-60%
- Sales: 30-40%
- Other: 20-30%
Growth Stage (Series A):
- Total comp: 70-100% of revenue
- Engineering: 35-45%
- Sales: 25-35%
- Other: 20-30%
Headcount Budget Formula
Total Comp Budget = Σ (Role Count × Fully-Loaded Cost × % of Year)
Example:
3 Engineers × $202K × 100% = $606K
2 AEs × $230K × 75% (mid-year start) = $345K
1 PM × $162K × 100% = $162K
Total: $1.1M
Quick Start
To plan team composition:
- Identify stage - Pre-seed, seed, or Series A
- Define roles - What functions are needed now
- Prioritize hires - Critical path for business goals
- Set compensation - Base salary + equity by level
- Plan timeline - Account for recruiting and ramp time
- Calculate budget - Fully-loaded cost × headcount
- Design org chart - Reporting structure and span of control
- Allocate equity - Fair allocation that preserves pool
