In India you have one of the best flexible, agile HR system that fits in any device for HR management is ApHusys. You have a base version which is free module and pay per use for other modules as you go. This keeps budget low and effective if used for advanced modules.

Thinking of spending big like any large corporates for Infrastructure, People etc., Without the Sales coming in you can't burn the cash which is in your hand (if you have limited resources).
Startup is like a baby need to be treated with utmost care and needed to feed/care what is required to grow best.

Hiring a CEO for the first time is very important. Especially after you have successfully run this business. Answer can be long based on various assumptions, however some of them I shall cover. Hope its helpful.

- Most importantly, you need to be sure that the new CEO would like to understand your vision and make it possible to grow without changing the organizational DNA which you created.
- Hire a CEO had built a company from certain stage to significantly to an other level.
- Also take help of any good mentor who can really classify your behavior and what helped you to grow business and help you map with new person to complement the skills & Knowledge. Mentor can use various tools to measure and give feedback.
- Have the new person meet your existing best employee or partners. take their view point.

Important:
- Don't look for a person like you. Have them with diverse and different view points but can align to your vision.
- Make the important arrangement of pay for performance as much as possible. So that the CEO has a skin in the game.

Don't rush to take a decision. While you do this activity make sure you are running your business as usual.

Thank you and hope to have more conversations on this from the members to learn some more view points.

All the Best.

Regards,
GR Reddy (GR)
Husys Consulting Limited
India

Time is essence in any such decisions. Early discussion to help him to transition is advisable. Such decisions are made before weekend so that your and his week starts fresh. Make sure that the documentation of non-productive efforts are in place.

At Early startup stage its important to make the performance feedback instant and part of the culture. So that it helps people to make decisions including you who are running the business risk.

Any business today has no escape for Collaboration for Growth. Building consulting partners to deliver services where you do not have access. However be sure of the engagements and tight agreements in the initial stages to avoid any awkward situations later. Start with the best known people to collaborate and build new network for future.