How to Hire a Developer for Your Startup: What to Brief, What to Budget and What to Avoid

Hiring the wrong developer is one of the most expensive mistakes a non-technical founder makes. Not because developers are bad — because the brief was wrong, the scope was undefined and the founder didn't know what questions to ask. Here is what to ask.

A non-technical founder hiring a developer for the first time faces a specific problem: they do not yet know what they do not know.

They cannot evaluate the quality of a technical estimate. They cannot tell whether a proposed architecture is appropriate for their requirements. They cannot assess whether a developer's claimed capabilities match the work they are being asked to do.

And developers — good ones and bad ones alike — know this.

The founders who navigate this well do not do so by learning to code. They do so by building a process that protects them regardless of their technical knowledge: defining scope clearly before engaging anyone, writing a brief that specifies outcomes rather than preferences, establishing IP ownership explicitly and defining what "done" means before work starts.

That process works with any developer. Here is how to build it.

Step 1: Define the Scope Before You Talk to Anyone

The most expensive mistake in developer hiring is starting with a conversation before the scope is defined.

Without a clear scope, the conversation is unbounded. The developer proposes everything. The founder agrees to things they did not need. The project expands. The cost escalates. The timeline extends. The founder realises six months in that what has been built is not what they needed.

Define the scope first. Specifically:

What problem is the software solving? Not "we need a platform" — the specific problem. "Customers are currently managing X process manually using spreadsheets and email. We need a system that automates Y and Z."

What does the minimum version need to do? Define the minimum functionality required to test your core hypothesis. List every feature the first version needs. Then go through the list and ask, for each one: does this need to be in version one or can it wait?

What does it not need to do? Stating explicitly what is out of scope prevents scope creep during the build and gives the developer a clear frame.

What does success look like? How will you know the product is finished? Define the acceptance criteria — the specific functionality that, when delivered, constitutes completion of the contract.

Step 2: Agency vs Freelancer vs Offshore

Each engagement model has different tradeoffs.

Freelance developer

• Lower cost than an agency

• Direct relationship with the person doing the work

• Quality varies significantly — requires more evaluation effort

• Less process rigour than an agency

• Risk increases if the developer is unavailable, gets sick or moves on

Best for: well-defined, time-bounded projects where you have a clear brief and can manage the relationship directly.

Agency

• Higher cost but more process, accountability and backup capacity

• Account management layer ; you are not managing the technical work directly

• More consistent quality (if you choose well)

• Better for ongoing relationships and evolving products

Best for: larger builds, complex products and founders who want more process protection.

Offshore development

• Significantly lower day rate

• Larger talent pool for common technology stacks

• Communication and timezone management adds complexity

• Quality varies enormously; portfolio and reference evaluation is essential

Best for: well-defined scopes with detailed specifications, where the cost saving justifies the additional management effort.

Step 3: Write the Developer Brief

A developer brief that protects a non-technical founder covers these elements:

Product context

• What the product is and what problem it solves

• Who the users are and their technical context

• What platform or technology decisions have already been made (if any)

Functional requirements

• Every feature the first version needs to include — described in plain language as user stories ("As a [user type], I want to [do something] so that [outcome]")

• Acceptance criteria for each feature — how you will know it is working correctly

Technical requirements

• Performance expectations — page load time, concurrent users, uptime requirements

• Integration requirements — what other systems does this need to connect to?

• Platform and device requirements — web, mobile, specific browsers?

• Accessibility requirements if applicable

Timeline and milestones

• Overall deadline

• Phased delivery milestones — what is delivered and when, not just a final launch date

• What triggers a milestone payment

IP ownership This is the most important non-technical element of any developer contract.

State explicitly: all intellectual property created in the course of this engagement — code, designs, documentation, data structures — belongs to [your company name] from the moment of creation.

Without this clause, a developer may own the code they wrote for you. This is not a theoretical risk; it happens, and it is expensive to resolve after the fact.

Step 4: Evaluate Candidates

When evaluating developers or agencies, the questions that matter most:

Portfolio and references

• Have they built something similar in scale and complexity to what you need?

• Can you speak to a previous client about their experience? (Ask about process, communication and how they handled problems — not just the final product)

Technical questions (ask a technical advisor to help if needed)

• What technology stack do they recommend and why?

• How do they handle version control and code documentation?

• What is their testing process?

• What happens if a key person leaves mid-project?

Process questions

• How do they communicate progress — what is the reporting cadence?

• How are scope changes handled — is there a change request process?

• What does the handover process look like — will you own the code and be able to manage it after delivery?

Step 5: Protect Yourself During the Engagement

Once the project begins:

• Review progress against milestones, not just updates

• Ensure the code is in a version control repository (GitHub, GitLab) that you own and have access to from day one

• Tie payments to milestone delivery, not time elapsed

• Document any scope changes in writing; do not agree to additions verbally

• Test functionality as it is delivered, not just at the end

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Frequently Asked Questions

Do I need to be technical to hire a developer? 

No — but you need a process that protects you when you are not. Defined scope, written brief, IP ownership clause, milestone-based payments and access to your own code repository are the five protections that reduce the risk of non-technical developer hiring significantly.

How much does it cost to hire a developer for a startup MVP? 

It varies enormously based on complexity, location and engagement model. An Australian freelance developer typically charges $100 to $200 per hour. An offshore team might charge $25 to $60 per hour. A simple MVP might take 200 to 500 hours of development. Get three quotes with defined scope before committing.

What is the biggest mistake founders make when hiring developers? 

Starting conversations without a defined scope. Without scope, you cannot compare quotes, cannot hold the developer accountable to a delivery standard and cannot tell whether the work is done. Define what you need before you engage anyone.

How do I protect my IP when working with a developer? 

Include an IP ownership clause in the contract that explicitly assigns all IP created during the engagement to your company. Ensure the code is held in a repository you own. Do not wait until the project is complete to address this — it should be in the contract before work begins.

Agency vs freelancer — which is better? 

Neither is universally better. An agency provides more process, accountability and backup capacity. A freelancer provides a direct relationship and typically lower cost. For a well-defined, bounded project, a strong freelancer with good references is often the right choice. For a complex product with an evolving scope, an agency usually provides better protection.

Stop Guessing. Start Building.

Hiring a developer without technical knowledge is a process problem, not a knowledge problem. Define the scope. Write the brief. Protect your IP. Tie payment to delivery. Own your code from day one.