Thoughts to Ponder when Considering Working for a Startup 

Accepting a position at a startup could be an exciting decision that will change your career. Because of the new concepts and fresh approaches startup companies typically bring to the market, they provide an opportunity for you to make a lasting impact on an organization. Year after year startups find themselves in desperate need of good talent, which means finding a position with a company at this stage of development may not be as difficult as you might imagine. According to the US Startup Outlook for 2018 report, “More than 90 percent of startups globally again report that hiring is a challenge.”

Once the opportunity to work for a startup is in hand, should you accept? The answer depends on how prepared you are for the challenges faced by companies in this early stage of business and your understanding of the company and the environment in which it operates.

Questions To Ask Before Accepting a Position At A Startup

1. In what industry is the hiring company? What does research show about the outlook of the industry?

Startups are perceived as some of the riskiest businesses in operation and notably so. Nine out of 10 startups fail. This is no reason to shy away from them but just a reminder to be aware.

Have a thorough understanding of the products and/or services the company offers. This will help you develop your own predictions about how well the company will to do in today’s business climate. Some industries are resilient while others are more uncertain. Taking the time to research the opportunity will help you assess the uncertainty and make best and worst case scenario assumptions regarding how long you may be an employee. Plan accordingly.

2. Are the skills and knowledge you will gain here easily transferable?

Because the risks are higher when working for a startup you want to be reassured that in the event of a shut-down, there is a silver lining. Even if you don’t receive a hefty severance package the experience you gained can be a valuable substitute. Ask as many questions as necessary to understand the position you are considering. Go beyond the title and make a conscious effort to see your position through the eyes of the hiring manager. What would you ultimately be responsible for? What impact will you be expected to make, both short-term and long-term?

Startup companies frequently won’t have a manual in place as to how they operate, so training may be limited. Be prepared to gather most of your experience hands-on. If you are already equipped to handle sink-or-swim situations, this may work well for you. With a positive mindset, strong work ethic and a willingness to learn, you can accumulate a wealth of experience in a relatively short period of time.

3. Can the company pay a competitive salary and benefits? Will you have to make any major sacrifices to work there?

Startups are not always able to offer as many competitive benefits as larger companies due to the financial constraints that come along with starting a new company. You may have to take a pay cut. You may not receive a 401k match, and health insurance benefits may not be competitive. Before accepting a position, you want to be sure that the offer is financially feasible for your lifestyle. Review your financial obligations and ask for a copy of the benefits package prior to responding to any offers.

Keep in mind that your financial situation may afford you the capability of accepting an offer lower than your current situation. If this is the case, it’s essential to decide if the opportunity is worth it. Will the experiences you gain compensate for the income you lose in the long run? Do you believe the company’s business model is strong enough to overcome the odds so that it may one day pay you what you’re worth?

4. Can you wear many hats? Are you flexible?

When working for a startup, it is very common to pitch in and help in process/projects outside of the scope of your job description. Titles are not restrictive, and you must be capable of adapting to the company’s needs, no matter what they are at the time.  It wouldn’t be surprising to see a CFO working closely with IT on a new software deployment project or the sales team on new revenue source ideas.

Startups undergo a great deal of change, and to be successful, its leaders must be able to adapt at any time. If you’re flexible and can welcome the chaos that comes along with rapid change, you may be a good fit for the startup world.

5. Do you understand not only how to do a job, but can you help scale the process?

Many startups need to scale their processes during the growth stage, and they look for employees who have experience in this area. It’s easy to lose control of a business model during the transition, so being able to identify and develop areas of the business that are scalable is key.

Being proactive about creating automated processes and finding efficiencies that have yet to be implemented. Companies can only stay in the startup phase for so long. Eventually, in order to remain profitable and create a successful long-term business strategy, its revenue growth rate will have to outpace the growth rate of its expenses. And in order to scale successfully, you will likely be expected to play a pivotal role in ensuring that the building blocks are in place to handle the growth once it does come.

6. What is the company’s goal, end game or exit strategy?

Understand the company’s vision. The startup phase is just the beginning. What’s next? And what’s after that? It’s easy to get lost in the hype of working for a startup. After all it is pretty exciting but you want to be sure that you understand the end game. What do the owners ultimately want to accomplish? Is the goal to create a system profitable enough that a larger company wants to buy? Perhaps the owners have their minds set on going public with an IPO. Or maybe selling to employees is the ultimate goal. Try to get a firm grasp on what the exit strategy looks like so you understand what you’re signing up for.

Startup Pros and Cons: Weigh Your Options

Working for a startup is not for everyone. As with any decision, there are pros and cons. If you are interested in working for a startup company, strongly consider those with missions you believe in. This will make it easier to deal with the excessive workload, lower salaries, and constant state of change. Also focus on the positives. Startups usually offer much more flexibility and small perks than more established companies, which means you can avoid the bureaucracy that plagues many organizations. How would you like to cash out your vacation without conflicting with HR policies or receive a weekly Happy Hour in the office as extra compensation for some of your hard work? There are no guarantees, but you have more room to negotiate at a startup than at any other company. More importantly you have the opportunity to make great strides in your career while changing an industry or the world.