Building HR Systems That Scale

Lightweight HR infrastructure can make or break a deal. Learn how to stay organized and due diligence–ready.

In collaboration with Danielle Moore, Keia Atkinson, and Brett Owens from Fisher Phillips.

Early-stage startups run on speed. But once you start raising serious capital or heading toward acquisition, buyers expect professionalism, not chaos.

Here’s where founders need to level up:

1. Get HR Infrastructure in Place

You don’t need a 10-person HR department, but you do need systems.

What to do:

• Invest in a lightweight HRIS or secure cloud storage.

• Train founders and managers on interviewing, performance management, and harassment prevention.

• Draft a simple employee handbook; think anti-harassment policies, time-off rules, IP security, and confidentiality expectations.

2. Plan for Dispute Resolution

Small disputes can become big liabilities if left unchecked.

What to do:

• Consider whether arbitration agreements or jury trial waivers make sense in your state.

• Keep terms in plain language so they’re enforceable.

• Update agreements annually to stay current with changing laws.

3. Prepare for Due Diligence Early

The best gift you can give your future deal team is being organized.

What to do:

• Keep clean digital files of offer letters, agreements, payroll records, and equity grants.

• Document any prior employment disputes or severance agreements.

• Maintain an up-to-date employee census with titles, compensation, and start dates.

Closing Thoughts

A clean HR system shows acquirers you’re running a real company, not a side project. And it makes diligence smoother, faster, and less expensive.

This article was written in collaboration with Fisher Phillips, an international law firm representing employers in labor, employment, and immigration law. You can read their full original article here.

This is Part 3 of 4 in our series. Next week, we’ll close out with compensation, clean transitions, and the golden parachute trap.