Is A Startup Right for You?

By Nick D'Ambrosio

While most everyone dreams of finding the next Google, few people understand what it means to go from an industry leader to a startup.
We have placed hundreds of people at early stage companies and find those who do the most homework upfront , typically have the best luck picking winners. In this economy, startups provide an even greater challenge and are not for everyone. Before making a move ask yourself:

1. Has my ten years at Oracle (industry leader) really prepared me for this next venture?
2. Am I the type of person who wants to work in an environment with little infrastructure?
3. Do I have the stomach to handle the inherent stress that comes with an early stage company?
4. Can I survive making less money for a year or two?
5. Have I considered what this move will mean to my overall market value?

During the interview-
The savviest job seekers tend to excel at the interview process and have a higher degree of success picking winning companies. They know how to interview the company prior to joining. In a sense they are turning the tables and getting the company to sell them on why they should take the job.

You need to ask tough questions without coming across as too skeptical. If a hiring manager senses you are being too skeptical, they will probably assume you’re not right for the job and move to someone else. Here are some basic questions you should be asking:

1. Why is there an opening? (turnover or new head-count)
2. What is the burn rate and how much cash does the company have?
3. Who are their paying customers? There is a big difference between a paying customer and a beta customer. If possible get revenue numbers.
4. What are the biggest challenges the company faces ?
5. Who are the biggest competitors?
6. How big is the market? Having a great story and cool technology is exciting but if the market is small or yet to develop you need to know this.
7. If you are interviewing for a sales role, find out if they have existing reps that are making good money? Ask to speak with them.

Even if you do a great job during the interview process, you never really know if you’ve picked a winner until you have been at the company for many months and sometimes even years.
With the startup market finally showing signs of life again, you will most likely be hearing about new “deals” in the months ahead. Do your homework, interview the company and you just might find the next Google! Good luck.