It is true that the idea of working for a startup can be very compelling and exciting at first. They are widely popular for their unique working culture, unlike other typical well-established companies.
If you are a newbie with startups then you must be feeling a bit confused regarding how these companies operate.
You must have definitely heard a number of exciting stories about how people have become successful with startup businesses. But the truth is that for every startup that succeeds, there are a lot of them that do not thrive at all.
If you are new to the startup world then it must be difficult for you to decide whether you should actually join a startup or not at the first place.
Is there a way to identify a promising startup? In fact, if you can do some proper research beforehand you will be able to get a clear picture about the startup company that you wish to be a part of. I’m here to tell you seven things you should consider before joining a startup straight away.
1. Background of the founders
It is really important to do some background research on founders before being a part of a startup. An organisation can thrive only if it has a good founder who knows exactly what to do.
You should get to know about their academic background, professional background, vision, mission, skills, and past experiences including both successes and failures.
You can always Google, visit their LinkedIn profiles or watch some of their past interviews to get a clear picture about their overall personality.
You should join a startup only if its founders show promising characteristics of leadership.
2. Financial stability
One of the most common reasons for the failure of a startup is not having sufficient money.
If a startup does not have enough funds coming in, it will not last that much longer. It should at least have sufficient amounts of money in bank accounts if it is to survive the next couple of months.
Therefore, never forget to make sure that the company is financially stable enough to support its employees before jumping into accepting the job offer.
At least ask for some assurances for your future benefit.
3. The stage of the startup
Joining a startup that’s in its early stages is a great risk to take as it can go either way; totally down-hill or up with success.
If you are 100 per cent sure that the organisation is going to succeed eventually, then it is acceptable to take some risk.
Usually, the early-stage startups that do not receive traction for their products are more likely to fail in the future than the early-stage ones that have received initial traction.
A well-funded company with a good customer base is less likely to fall.
Therefore, you should assess the situation wisely and jump right in if it is stable and things go smoothly.
Also read: 4 tips for building a culture to help your company succeed
4. What do they expect from you?
Before joining a startup you should be confident that you are very well capable of providing the service they expect from you.
During the early stages of a startup with less resources at disposal, the responsibilities of its employees become significantly high.
Also Read: What do investors look in a startup
You should join such an organization only if you feel like you can do it.
Therefore, before joining a startup you should have a sound knowledge of its job description, key result areas, and the role you are going to play once you wade in.
5. Will the culture fit you?
You should be certain that you have the capability to fully adapt to startup culture.
If you can get used to the new working environment where you are expected to work long hours or have a sense of community, you will be able to perform well towards achieving corporate goals.
On the other hand, if you fail to do so the outcome will be unfavorable for both you and the company.
6. Compensation
Startups offer various compensation and benefits like ESOP (Employee Stock Options) to attract employees with talent. ESOP is usually paid once the startup is settled and more investments have started to come in.
If the organisation does not succeed, there is a risk of not receiving any compensation at all.
Therefore, you should be wise enough to request for a compensation package that you can be totally satisfied with.
It is always better to settle for a structure where you receive a fixed amount of payment.
Also read: How do you size employee ownership of your startup? This is your comprehensive guide to ESOPs
7. Stable management
You should join a startup only if the top management is stable and show a willingness to continue their service on behalf of the company.
There are many reported incidents where the founders have resigned from their startup as a result of internal conflicts.
Such incidents greatly distort the stability of the organization and endanger the future of its employees.
Therefore, you should never join a startup without doing some proper research on recent exits of its board members and the top management.
Trust me when I say that you’ll never want to work in a startup where everything is crumbling from its top management itself.
Joining a startup can either be your downfall or the first step towards success.
You should be wise enough to assess both risks and benefits before becoming a part of a startup.
Once you calculate the risks well and choose a startup with a promising future you will be able to work towards your own success.
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