5 Things To Look For Before Joining A Startup

Everyone wants to get in on the ground floor of something big. Being one of the original members of the next Microsoft, Google, or Facebook would work wonders for your career (and would probably earn you a fortune as well).

But joining a startup is risky, as startups are much less stable than established companies. While there’s a chance that the startup you join will have a billion dollar IPO in a few years, it’s much more likely that it will fail.

If you decide to take the risk and join a startup, be careful. Here are a few things you should look for:

How Will You Be Compensated?

One major issue with startups is that they usually don’t have the funds to pay their employees good salaries. You’ll need to accept less money than you’d be able to make elsewhere.

Some startups will give you stock instead of paying you directly. Worse yet, a startup might say they can’t compensate you at all until they start making money, which could take six months, a year, or even longer.

If you have some savings, then maybe you can sacrifice a salary now for a potential huge payout later. But if you’re living month-to-month and you depend on a regular paycheck, you’ll need a steady gig instead.

Is This The Right Move For Your Future?

For those currently looking for a job, an offer to join a startup is incredibly enticing. Saying “yes” would be the right decision. After all, what do you have to lose?

The decision is much harder for those who are already employed. What are the odds that you can move up the ladder in your current organization? Would you be better off jumping ship and trying something new? Don’t just think about the consequences for the next week, month, or year. Think about the overall span of your career.

Read Sidd Pagidipati’s “The Power of Long-Term Thinking” for more information on this topic.

Do You Fit In With Their Team?

Team-building is one of the most important aspects of business management. This concept isn’t only important to managers, though – you’ll want to get along with your co-workers, too. Otherwise, you’ll be unsatisfied during each work day, which means you’ll be unsatisfied during the majority of the time you’re awake. That’s no way to live.

Is this an environment where you can be happy and productive? The answer to this question for one person may be entirely different than it is for another. Some people prefer working in a casual office that has foosball tables and a happy hour, while others function better in a more professional setting.

Meet with the founders and other key members of the startup and see how well your personalities mesh together. Make sure the fit is right for you before you join the team.

Do You Believe In The Startup’s Vision?

So, to join a startup, you’ll need to initially accept less money than you’re worth for a situation that’s less stable than the average business.

There needs to be more motivation behind your decision than the off-chance that it’ll make you Zuckerberg-rich. In addition to working for a business that’s not a good fit for you, this is another thing that will make you miserable.

There must be something other than money that’s driving you. The startup’s beliefs should align with your beliefs. For example, if you’re a passionate environmentalist, then a startup that produces solar panels would be the perfect place for you.

It’s also important to do your homework. Is this a startup that can actually succeed?

Todd Thibodeaux, the CEO of CompTIA, offers the following advice: “It’s great to have the idea and the passion to run a startup, but without customers or markets for what you’re starting up, the company won’t be around for long. Are there competing products or solutions already in the marketplace? If there are, and these products have a strong foothold, how will the startup compete?”

Do you think a top entrepreneur would be interested in the startup?

When you’re stuck on a problem (in this case, the problem would be whether or not you should join a particular startup), a helpful exercise is to take yourself out of your own head and imagine how someone else would approach the issue.

Would a successful, experienced entrepreneur take the opportunity that you’re considering, or would they pass on it? If you’re having trouble thinking of a specific entrepreneur for this exercise, review Mandy Richard’s “5 Entrepreneurs That I Follow And All Wannabe Entrepreneurs Should Too”. That article will introduce you to some of the top minds of the modern business era. It’s a great resource for inspiration.

Put yourself in a world-class entrepreneur’s shoes and look at the problem from their perspective. This simple little trick just might show you the answer.