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Part 3: Moving Day This is the third in a three-part entry on hiring developers abroad. Click here for Part 1: Finding New Team Members, and here for Part 2: The H-1B Visa Process. Now that you have found, vetted, and completed all the paperwork for a great new developer on your team, it is time to move them out to the US. This may seem like the easiest part, but there are definitely some things to watch out for. Mainly, moving to a new country is not easy, so there may definitely be some culture shock or anxiety around the whole experience for a while. A startup is like a family, so you should do whatever it takes to make everyone feel welcome. Ease the transition as much as possible. That starts with buying a flight (find the best mutual date) and arranging for an apartment/hotel for the first couple months. Or, if you have enough space, putting them up in your apartment or house. It is much easier to feel comfortable in a new country when that is taken care of. Everything else is new as well, so the team will have to play tour guide, escort the developer to open a bank account, and assist with getting a phone plan. The two most challenging logistical items for any new arrival are probably:

Driver’s License and the DMV experience

Getting a social security number (which they need before they can be put on payroll)

Part 2: The H-1B Visa Process This is the second in a three-part entry on hiring developers abroad. Click here for Part 1: Finding New Team Members, and here for Part 3: Moving Day. Before diving head on into the H-1B process, it’s generally a good idea to fly the developer to the US for some time to feel out the interpersonal connections, and also the developer’s comfort with the team and new country. Many countries can use a fairly accessible 90 day Visa Waiver Program (VWP) that can be obtained easily. Or, one can use a relatively simple Visitor’s Visa that is good for up to 6 months. Get one of those, a flight, and a hotel/apartment and off you go. A few notes on the this time in the US as a visitor/tourist: -Less than a week is generally not enough time, and most visitor’s programs won’t last more than three-six months, so that’s the timeframe. -The more time the team can spend together, the better: writing code, going to restaurants, seeing the sites, etc. -Working for your company directly, while in the US as a visitor, is illegal. -However, an independent contractor abroad is certainly allowed to visit the US on business, in order to gain the necessary context and understanding to complete their consulting projects. Just make sure to:

pay any of their invoices directly to a bank abroad

don’t control their workflow or work environment - treat them as consultants on a project

If all goes well, the engineer and company get along famously, and there’s a great fit and mutual interest in moving to the US. Now is the time to begin the H-1B visa process. The process is a typical bureaucratic headache, but I hope to explain it simply enough. The Pre-Boarding Checklist:

Get an immigration lawyer. Ultimately, it will not be that expensive, and having their expertise and experience will save you a lot of headache and legal trouble. Generally, legal fees will be around $3,000 per H-1B visa (plus $1-2k in government fees). Here is a lawyer I have used in LA and recommend:

        Heidy Berger Trombi, Attorney at Law         [email protected]         http://www.sftvisalaw.com

There are no specific requirements on a company itself to apply for H-1B developers, but it generally is easier if you have been around for a few years, have some other employees, and have some revenue.

The position being hired for must be a position that requires a university degree or the equivalent relevant work experience in the specific field. If you have a job posting up, one of the requirements must be a “4-year degree from an accredited university.” Generally, 3 years of work experience equals 1 year of university. In the case of a software engineer, the US believes this definitely requires a degree, so no problems there. However, the developer must have the degree or equivalent work experience.

Any questions on the various positions above can be checked at the Department of Labor’s Occupational Outlook Handbook.

If there is a question as to the validity of the education or experience, a CV and/or transcripts may have to be sent to an educational credential company for review (such as Foundation for International Services or Morningstar).

The position must also offer the “prevailing wage”, which basically means lowest realistic fair market wage. Right now, about $65k is minimum for devs.

Any questions on the above wages can be checked at the Department of Labor’s online wage library, the Office of Foreign Labor Certification.

Documents needed from the future employee:

-official copy of their degree and transcripts -full, detailed CV -if possible, educational evaluation and letters of employment verification -copies of passport pages including cover pages, current visas (if any), and I-94 -immigration forms (if already in the US on a visitor’s visa)

Overall expenses to have ready:

-~$3,000 in legal fees (optional) -$325 filing fee to Dept. of Homeland Security -$500 anti-fraud fee -$750 (25 employees or less) - $1,500 (26 or more) employer’s fee -$1,225 premium processing fee (optional), which is a 15 day expedited review vs. 2-4 month review

Be incredibly thorough and detailed. This is the US government, meaning one typo starts the whole process over again.

Read this guide to understand the overall process. Then read it again.

The Process: Timing - Each year, the US gives out 65,000 H-1B visas, plus an additional 20,000 for individuals with US master’s degrees or above. The clock officially starts on October 1st each year, which means the visas run out usually by late November. As a company, what this means is that no matter when you start the process of reaching out, you need to begin filling out the application forms 2-6 months earlier, in April-August. The earliest one can apply is April 1.

Now, again, developers and designers can work as independent contractors as long as they are still generally based abroad before they are approved on H-1B visas. But, they cannot work in the US or as an employee officially until that time. If an individual is in the US already on a visitor’s (or other) visa at the time of application, the same application form can be filled out, the only difference being checking the box for “change of status”.

Approval of the I-129 can take 2-4 months, or 15 days with the premium processing fee. Generally, I-129 approval is valid for 3 years of working in the US, and can be extended for an additional 3 years (6 years total). Forms - Generally, there are two forms for the employer to fill out: the Labor Condition Application (LCA or Form 9035 E), and the Petition for a Non-Immigrant Worker (Form I-129). Each is described below.

1. LCA: The Labor Condition Application is e-filed with the Department of Labor, and is an attestation stating the position, salary, prevailing wage, and fair treatment of employees. The DOL will review, certify, and return it, signifying that your company is legitimate and all is on the up and up. In order to complete the LCA, a few items are needed: i. two notices about the position posted on a wall in your office in two conspicuous locations for ten days, 30 days prior to filing the LCA ii. the creation and availability of a Public Access File (just a file folder in the office) one day following the submission of the LCA for review. The file contains: a. declaration of posting the above notices b. a copy of the prevailing wage from the DOL’s online wage library (see above) c. a wage memorandum on the specific position d. the original signed LCA, with a copy given to the H-1B employee 2. I-129: The Petition for a Non-Immigrant Worker is filed with the US Citizenship and Immigration Services (USCIS), and includes the three fees mentioned above ($325, $500, $750-$1,500, and optionally a $1,225 premium processing fee), made out to the Department of Homeland Security. In order to complete the I-129, a few items are handy: i. an approved LCA ii. your company letter of support for the developer, outlining position and duties iii. educational credentials and qualifications iv. company brochures or information

Once the I-129 is approved, the developer can legally begin working in the US! If it is not approved, the USCIS may request additional evidence or credentials on the qualifications of the developer. Last Step - The H1-B Visa - The developer now has some work to do on their own, in order to be able to legally enter the US. While your company may legally accept them as an employee, they are not actually able to enter the US until getting the H1-B visa affixed to their passport.

The basic process is for the developer to head to a US consulate in their home country. If they are already in the US and applying for a change of status, they are usually allowed to stay until the next time they leave the country, at which time they must go the the consulate before returning once again to the US. Requirements:

DS-160 - fairly standard visa application form

Filing fee - normally about $140 USD - with receipt of payment

In-person interview

The I-129 petition submitted online

Passport

CV/credentials/qualifications (same as before)

More information may be requested, such as marriage documents or criminal history

The US consulate will review immediately, before mailing back the passport with the H-1B attached about a week later. Whew, lots of logistics. But now, good to go to buy a flight, move to the US, and work at an awesome startup! Check out Part 3 for the moving process.

Part 1: Finding New Team Members This is the first in a three-part entry on hiring developers abroad. Click here for Part 2: The H-1B Visa Process, and here for Part 3: Moving Day. Many many months ago, I read this post about the difficulties of hiring developers at a startup. There’s also this on a surplus of founders leading to a shortage of good developers, especially in SF. But, it wasn’t until I read this post on the difficulties of hiring developers abroad that I became inspired to write this article. What happened here to Pau should never, ever happen to any great developer, worldwide, and it effected me deeply. There are plenty of great developers (and designers!) out there that would be overjoyed to write code at your startup. They just don’t live in this country. Yet. We had an amazing team of 15+ Ruby and Python engineers at Citrusbyte. Clients loved them, they fit in amazingly with the team, and their code was top-notch. The vast majority came from countries like Argentina, Uruguay, and The Philippines. We also had two great international designers. I personally had the pleasure of onboarding a good chunk of them, and now count them among my friends. Not only were we and our clients getting top-quality work not usually available at a consultancy - we were able to create a rich and culturally diverse environment that transcended day to day business (that sounds fluffy but it’s true). So - it’s going to take a little extra work to find foreign devs and designers. But, guess what? You were going to work extra hard anyway, competing with a mass of other startups for really scarce, local, quality engineers. Foreign developers have a bit more operational work associated with hiring them - but you’re accessing more available and higher quality engineering talent. A couple brief notes: -This post was originally written focused on developers, but has been expanded to include designers. It still may have a developer focused feel to it, at times. -While this article focuses on H1-B visas, I also feel compelled to mention http://startupvisa.com which I recommend any reader pledge their support to. The Startup Visa legislation is working its way through Congress, and supports entrepreneurs staying in the US with new companies. Here’s how to find developers or designers abroad:

Use your network: Your existing development team should be working on open-source projects, either professionally or personally. Often, there are contributors on these projects who make great targets to bring aboard. Ask around - the odds of finding a talented, available developer in the right programming language are high. If you’ve already hired someone internationally, they probably have friends/contacts they can recommend who are eager to join them. Again, ask around within your existing dev team.

Use your tools: There are plenty of places on irc, Hacker News or GitHub where you can find foreign developers. For designers, Dribbble is really the big winner, sorting by location, skill, or popularity (based on number of likes or comments). Again, I’d recommend exploring with a developer who is already on board and knows the landscape. I have not seen as much success going through Mechanical Turk or Odesk.

Conferences: Next time you are taking a vacation - pick a location with a language specific conference happening at the same time. See baruco, RubyConf Argentina, RubyConf Uruguay, euruko, etc. Attend the conference - and chat up everyone you see. The conference organizers are a great resource and generally are awesome programmers themselves, or can recommend some.

Craigslist: I have seen a surprising amount of success posting on local craigslist boards. It generally works better when you are traveling abroad so that you can meet with people in person.

I am much less of a fan of hiring foreign consultancies, although in certain situations it can work out well - usually on smaller, more specific projects.

Checking for fit: Reach out via whichever channel the initial discovery came from. If a referral was involved, definitely go through the shared connection. It is stunning how receptive developers are compared to the US, largely due to the relative levels of competition for their services. The basic pitch is: “Hey, want to work on [insert challenging technical problem] for our company [insert awesome company description] with a great development team [insert open source contributions and notable team members]? We’re based in the US, can hopefully triple your salary, and think you’d be a great fit. If all goes well, we’d love to have you move out here as well!” For designers, the pitch is a bit more product focused. A note on money: this is not going to be a main selling point with developers. Instead, focus on the product and team. However, I believe strongly in paying people what they’re worth - and that means their market-rate in the US (with some minor adjustment for cost of living). If you reward developers and designers abroad fairly for their value, you will find that salary does indeed become a more serious consideration, especially if you are talking 2-4x what they currently earn. It is imperative for both sides to have a feeling-out period, or trial project. This typically looks like this: -Hire developer as an independent contractor for a 1-3 month term. -Simple, easily understood contract agreement. -Fair market value - flat monthly rate. -Integrate them immediately onto a live project with an existing team member or two. -Constant communication: irc, skype video. Get their feedback, give yours. While having everyone in the same room is important for a product minded startup - it is surprisingly effective working over irc and skype for developers. The communication barrier is less, and workflow is less obstructive. If all goes well and they are well reviewed by you and other devs - fly them out and put them up for one week to three months to get a better sense of the cultural fit. More on that process and the H-1B process in Part 2.

I was recently hired (on a paid trial basis) by Lovely, a consumer facing apartment search application, that I absolutely love.

My role is defined under the general umbrella of business development, but basically over the past two weeks I have been focused on generating new supply (apartment listings) and findings ways to monetize (revenue).

I could write several blog posts about how to land a non-technical gig at a startup, but since it seems everyone has already done that, I'll summarize:

craft a story and platform: turn your resume into one clear story or tagline that summarizes you, and then support that with twitter, blog, linkedin, angellist, etc.

find an entry point: to jump into tech, you're probably not going to land a hot startup gig without some experience in tech. the year+ I spent at Citrusbyte was immensely valuable. find your Citrusbyte and work there first, to learn the industry and concepts.

find your company, or three: spraying resumes around will never work. find a couple companies you are legitimately crazy about, and throw yourself at them. do whatever it takes (free trials, product/biz ideas, attend conferences they are at).

get an intro: finagle a way into a company by using your network, your network's network, your network's network's network, or create a new network by reaching out to any and everyone at the company and their investors (use twitter, linkedin, meetups, etc.)

Anyhow, finding yourself in charge of biz dev in a new industry can be daunting. The key is to be prepared and be relentless.

Be Prepared (Research): before ever starting into the apartment industry, I talked to everyone I knew about real estate, looked up every company I heard of and followed them on twitter, looked up related startups on angellist, went down the rabbit hole on quora, and signed up for every meetup on the topic in SF.

Be Relentless (Hustle): day 1 and 2 involved, at a minimum, shooting emails out to every property management group in SF, every national property manager, every other internet listing service, and every related individual I could find. when that didn't work, phone calls followed. when that didn't work, I made office pop-ins. at one point, I discovered a conference and flew there on a few hours notice and shook every hand I could find. when I made a meaningful connection, I followed up, went deeper, learned more, and got intros from that.

It may sound like a shotgun approach, but really you are building a base. Most importantly, a base of knowledge, because there is no substitute for having an understanding of the industry ecosystem that comes from having walked in it. But also, a base of contacts, so that you can reach out to them for advice and introductions.

I should say also, that the only real contacts are the ones you legitimately become friends with - so engage sincerely and openly.

The ftw quote:

And yes, you’re right, Steve Jobs didn’t manage this way. He was a dictatorial, autocratic asshole who ruled by fiat and fear. Maybe he made great products this way. But you? You are not Steve Jobs. You are not better at design than everyone in your company. You are not better at programming than every engineer in your company. You are not better at sales than every salesperson in the company.

Really enjoyed this article on not being overly dogmatic, and other forms of business insanity, by Alex of Simple in Portland.

I LOVE this post on how to land meetings if you're a startup. I've done so many of these things and they definitely work.

If I may offer some further ideas:

Scouring the internet for emails definitely works. LinkedIn is a great resource if you have a huge network because you're often a connection or two away. Use those, but only if they are legitimate contacts.

Don't do biz dev occasionally. "Networking" is not a real thing. If you're in a new business, live in that industry (meetups, hack nights, expos, conferences etc.), and eventually you'll have real work related friends, not "contacts".

Involve higher ups and management. Growing a business is everyone's job. It's a lot like hiring in that respect.

One other thing that goes unmentioned:

The concept of a "Runway", which is effectively the amount of money in the bank divided by your monthly burn. A startup's runway is the amount of months it has left to gain traction until it burns out or needs to raise more money in order to continue.

A super useful resource for establishing a new business in CA. Provides links to all relevant regulatory bodies and forms/permits/licenses needed by industry, categorized by City/County/State/Federal.

Obtaining company health insurance was a big goal of mine when I first started in operations at Citrusbyte. I knew all the employees would be stoked to finally have it, and it is often a non-starter to hiring great new team members if a company does not.

However, it was initially a maddening maze of acronyms and concepts to figure out. HIPAA, HMO, PPO etc. And every situation is different, and little obvious questions you don't think to ask can have a big impact on choosing a provider, and on and on...

Here is a pretty simple set of basic guidelines to get health insurance quickly and cheaply:

Use an independent health insurance professional (HIP): Insurance professionals are largely paid on commission by insurance companies (free for you!) - and are experts on the entire landscape. They can get quotes across different providers, answer questions, and even explain new benefits to employees. It would be crazy to not work with one. Here is my favorite: Nicole Winner of WinnerQuotes; 805-804-5288; [email protected]

Get early feedback from your team: A startup isn't a ton of people, so you should be able to get some quick consensus on what types of things people are looking for. "Oh, I've heard this company is awesome!", "I never go to the doctor", "I don't care about dental", and "I already have my own coverage and don't need more" are all great pieces of feedback. While you're at it, gather up everyone's name, zip code, and DOB to expedite getting quotes from providers.

Understand your goal: There are a lot of reasons to get health insurance. Some companies just want to say they have it, others need to lower their pre-tax income. Are you expecting a lot of health issues and actually want a richer coverage? At most startups, especially with a lot of young team members, you're trying to save cash while having some benefits for employees, which means an inexpensive plan that covers against emergencies.

HMO vs. PPO: This is the single biggest question that really is up to the majority of a startup's team. HMOs are much cheaper, but you are stuck largely within their network of doctors. How much does everyone care about going to exactly the doctors they choose? At a young startup, the answer is probably not much.

Ask a ton of little questions: With health insurance, there are so many little rules and technicalities that you really want to ask everything you can think of before choosing a plan. It is not fun to end up stuck in a plan for a year after finding out some horribly inconvenient fact that didn't seem important during the vetting process. Some samples: Can employees opt to not have the coverage? Does this include emergency rooms? Can I switch to a different plan? When can the company switch to a different provider? What if someone quits? Is there a waiting period? What if Jeff lives out of state? Is dental included or separate? What if someone wants health but not dental? Is this percentage paid by the patient or the provider? What's the most I could spend in one year in a disaster? Are family members included? Is there a maximum benefit a patient can receive? Is a routine visit free if the deductible is waived? What is the company paying for vs the employee?

Just get Kaiser (keep it simple): Kaiser's care has gotten so good in recent years that it is a simple solution for a young startup, and incredibly cheap. It's a ton of bang for your buck, with rich coverage, and a clean user experience a lot of young people love. This only makes sense though, if: -you are on the west coast or another Kaiser area -the team is ok going to Kaiser doctors and centers exclusively -the entire team is based in one state (usually, complex issue)

If that is the case - the best thing to do is to offer employees a selection of 2-4 Kaiser plans to choose from (you can offer multiple at once). The startup can pay for the basic plan completely, and employees can opt to pay any difference (pre-tax!) to upgrade to a richer plan.

The link above is to the first article I ever read about the web business, and still today a great reference for me in re to building a team.

Props to Steve Newcomb (who I have never met) for writing it, and kudos to Ryan Ferrier (who is now a friend) for contributing.

Team building is really the most important part of any startup. Keep it small, keep it tight, really enjoy your work and who you do it with. When everyone is happy working on a shared vision, even if the product fails, you have still succeeded. There is no substitute for the experiences and friendships, and believe me, you will try again together shortly thereafter.

Having done this for a little while now, I will add some of my own thoughts and good advice I have received:

1. You are not "recruiting" or "hiring": Recruiting sounds creepy, and gives me heeby jeebys in re to recruiters. Don't use recruiters. Hiring is really just the handshake and paperwork at the end of along process.

2. DIY: You cannot outsource hiring to a recruiter or an assistant. A startup houses a founder's product and only a founder can sell it effectively to A-level players.

3. Go down the rabbit hole: Ethan Bloch, formerly of Flowtown, terrified me with this phrase at an Unleashed Talent conference earlier this year. What he meant was: you cannot simply post a job posting and expect to handpick a great addition from a stack of solid resumes. Building a team is a nonstop, live-in-it, up to your ears process. If you are not regularly in the community, attending meetups and hacknights, and constantly meeting people in other companies, you will not be ready when the time comes to bring on someone new. Additionally, good talent (I hate that phrase) is not coming to you. You have to go out and hunt it, both in the live world, and via stalking on LinkedIn.

4. Look in the right places: 37signals, GitHub, Forrst, Dribbble etc. if you must hunt online or post a resume somewhere.

Believe me, if all parties involved are ok with it, you want to hire someone as a contractor rather than an employee. Way less paperwork, liability, responsibility, tax complications, termination difficulties, and things like health insurance and unemployment are out the window.

However, this is one of the biggest hot button HR issues out there, and falsely classifying employees as ICs can get you in a heap of trouble. Government agencies are quick to look out for this in an audit or in the event of a claim as they can collect huge payments from an offending company. The cost is huge: back taxes, unemployment, disability, unpaid bonuses or vacation time to the employee, interest, and the contributions that the employee would have made as well.

Now, there are a lot of good windows to hire an independent contractor, especially for a trial period or specialized outsourced task. It is crucially important, however, to structure the engagement legitimately as an independent contractor type.

-have the individual form a company and hire the company

-structure the work into specific, defined projects

-pay in relation to those projects, rather than hourly, if possible

-don't supervise - let the IC work in their own way to achieve results

-don't mandate working from your offices

-require the IC use their own equipment and computer

Bookkeeping, not only an awesome triple double-letter word, is effectively the recording and analyzing of business transactions during the operation of a business. It is essential to have your "books" in order for taxes at the end of the year, and more importantly for receiving any type of financing. Even a simple line of credit from a major bank would require complete financial statements: Profit and Loss, Balance Sheet, etc.

If it is not too complicated, such as minimal income and basic expenses, you can probably buy Quickbooks and do it yourself. Certainly at the beginning, it is simple enough software to use, and just about anyone could learn quickly how to add an invoice, receive a payment, or note an outgoing wire.

However, with growing numbers of transactions, this gets super burdensome very quickly. Not only do you have to remember to save receipts and enter transactions into a bookkeeping software (such as Quickbooks), it really disrupts the workflow in performing more business-critical tasks.

This problem is compounded when transactions get more complicated. Is the purchase of that computer an expense or considered depreciating property? How do I record a half-paid invoice? How does a bank deposit get split into multiple customer accounts? etc.

These problems are easily solved by hiring a professional bookkeeper. If you already have a CPA/accounting firm, it is pretty easy to ask them to recommend a couple bookkeepers. If not, craigslist, or other recommendations. Most bookkeepers are freelance and contract with multiple companies, and may or may not be attached to a CPA.

Picking a bookkeeper should really use the same criteria as hiring an employee. Will they fit in with the team? Are they experienced and knowledgeable? Can they work well with the CPA? How much will they cost AND how fast do they work?

Once hired, you can be assured your books will be in good condition at all times, allowing for up to date financial reporting, and offering more regular financial and accounting advice at a much lower rate than a CPA.

Setting up a workflow with a bookkeeper is generally fairly speedy. They'll need to come in about 2-6 times per month, depending on volume. They'll need some basic access to your banks for deposits and statements. There will be some setup of new software (just use Quickbooks, it's standard). And I also recommend setting up both a physical and digital inbox for things like expense reports, receipts, and incoming checks to keep everything organized and efficient when the bookkeeper comes in.