What To Check Before You Join A Start Up Company and Take The Job

 Employment with Start Up Companies- Criteria for Decision

If you are some one who has been dreaming about working with a start up and learn how to do it all you have my good wishes just go ahead but make sure that you have made sure that the move is a good one to make. That needs good evaluation and some home work, the change it will bring for you and the money you may or may not make.

Hope you are not one of those Job hoppers who runs through a start up till you get a better job forget it. Job hoppers and start ups? I don’t see a match. Not if Jason Calacanis is interviewing you. He will first tell you that you are the guys destroying America. If you happen to run into Mark Suster don’t expect anything better. He is clear that he does not want guys like you any where near him. He thinks that they are just a bunch of bad employees who give him all the bad time, disloyal and they just are selfish guys who don’t care for the company, Can we blame him after knowing about all the blood and sweat that goes into it.

There are quite a few who feel like Mark Suster and Jason Calacanis for very good reasons. Mind you they are not saying no to every one. They just want you to make sure that you are making the move you want to stay for sometime and leave behind that makes them feel good about hiring you.

All is not so thorny. There are persons like Paul Dix who are willing to give it a try even if you had a label on you as a hopper provided you meet some of his criteria.

If you are bright and young and you have a very strong background start can be very rewarding to you in the long run. You must, however, be willing to give it all you have and stick around long enough to reap the benefits.

But before you dream about all the millions in the bank for your one percent share you need to do good home work. Some help to get you started is given below.

Start Ups and the Pros and Cons

Stat ups are started by the venture capitalist and the Technologists. On has all the money that he wants to invest and the other is waiting for a chance to try his new idea. When these two come together they are borne. It can be group of guys who are quite confident about their idea and possibly brought the idea to development stage. It is question of commercialization after that.

Start ups can blossom into something very big. After all, all the big companies, HP, Microsoft or Dell were all start ups at one time. But all these guys had something solid in their hand. So there is nothing wrong in start ups but it is different for the employee who is not a big partner. If they are successful and listed in the market then an employee who continues with the company can benefit substantially if he was given stock options.

If all is well they can be of learning value, better influence, experience in dealing with diversity and perhaps a cohesive group with common mission.

In tech start up may be there is some captive market, but in the open market start ups can face rough weather like price cuts, back breaking commissions, ad money what not, it can be big bill. All this is because the brand is new and needs development. That is the critical period. Once the brand gets well settled in the market the going can be good and the brand can be extended many ways.

Start ups look for young dynamic people with bright record and demonstrate drive and motivation. They want pure loyalty and the desire to work without looking at the watch.

The pay packet depends on the money situation but a lot rests on future attraction and the chance to get rich. That is a risk they want you take. Vacations and holidays are notional at start ups. So if you have been pampered by the corporate world all these years it may not suit you well.

Before you try to work for a start up Company there are three most important things you need to do.

The fit between You, the Company and the Work Environment

Ask a whole lot of questions to yourself and make sure that you are really ready for it.

You can move from a big company and adapt to smaller company work atmosphere

and work situation. This could mean a change from 40-50 hours week to 80-100 hours week. Your health must be good to take that part.

You can also expect the founders to be peeping over your shoulders though they say they trust you. If you are expecting lots of freedom and autonomy you need to remember that the founders may have come out for the same reason, but would not want to write anything in pencil now. They want to inscribe it; after all it is their money.

You can wait for the profits to arrive. If you are banking heavily on the sale of the options you may be allowed to do so after a3-4 years of survival in the company otherwise the company can lose you and can find it hard to attract new employees.

What is important to remember is that the revenues of the company must be significant before the options have enough value. Your share might decline in value if additional venture capital is brought in exchange for ownership of the company. At the end the value of your ownership can come down due to dilution. When you sell the realization is also subject to tax which could make the net much less than anticipated. You need to consider this possibility and incorporate this into your plans.

You have enough back up strength like a working spouse to handle if things were to go the other way.

Get enough information about the company

You must know the reputation of the founders and their background. It is important that they can stay together if the weather gets rough on the way.

Your own personality type and whether it would fit into that group. Even if you are not partner your interactions can be high in small organizations.

How did the basic idea of the start up originate and if the idea is strong, well researched and sustainable in the market.

The capital position, plans to raise capital and ability to raise it successfully

What is the current cash position?

What do founders want from the start up?

What will the start up do for you financially and professionally?

Besides these founders will some outside investors be invited to join?

Their reputation with suppliers and customers

Some Important Question to ask when you meet

How long has the company been in business and its business situation?

How much funding is available?

What are the benefits they can offer you?

Do they have some patents?

Do they have some trade marks?

Who is in charge?

People working there and their backgrounds

Start Up and Life Cycle

Start up careers may not suit all ages. One has to be healthy and strong. If you are the kind that looks for a balance you need to fit the job to suit the age.

Links of further Reading

http://ramkkasturisbusinessmanagement.wordpress.com/2010/05/29/how-to-make-employment-choices

http://hubpages.com/hub/Ramkkasturis-Job-Hopping-is-it-Good-or-Bad-and-the-Precautions-You-Need-to-Take

http://www.businessweek.com/smallbiz/content/mar2010/sb20100311_552993.htm

http://technicaljobsearch.com/job-banks/start-up-company-jobs.htm