Hear the word startup and the first thing that comes to mind is the idea of a ‘casual-fun office environment’. Yes, in fact it is true to quite an extent. You do get the room for all you want while working in a startup, but shouldn’t there be a few more things to consider before opting for one?
Obviously, there are!
Goes without saying that startups today are offering a number of jobs that are enticing and a come along with a bright chance to grow in the most efficient way, but there are career aspects which demand due consideration at the same time as well. And that does make some sense, provided that you are to choose between a multi-million dollar corporation and a venture that sits pivoted on an equal probability of being a success and crashing down the market. The global job market today has numerous opportunities, but opting for a new venture demands for you to ponder over certain aspects. The section to follow will throw some light over the same.
The Revenue Model Of the Company
Agreed that at this stage of your professional life, money shouldn’t be that big-a-constraint. But going by the revenue model of the company, you can easily make sure whether the company is to create a surge in the future or not. Carry out a thorough research at your end and find out about the revenue numbers. Consider questions like, has the company income been stagnant or increasing? Has the venture been successful in catering to the needs of all clients? Are the products and services provided by the company in demand at present?
This will give you a fair idea regarding the customer base and the stability trends to happen in the future.
The Number of Outstanding Shares and The Equity You Have
Of course, being one of the founding employees in a company, you are looking forward to have a share in equity during the time to come. However, it’s imperative for you to know that equity is granted in various ways, with Restricted Stock Units (RSU) and Incentive Stock Options (ISO) being the prevalent ones at present. Hence, it stands significant for you to be well-acquainted with all the nuances, when it comes to taxing options for each of the aforementioned.
Moreover, another thing to consider is the number of options (numerator) present for you to avail and have a share in the ownership of the venture. The same requires for you to know the outstanding shares (denominator), keeping factors like dilution in mind.
For instance, if the startup is successful in getting more investors in the future and raises further capital that would straightaway increase the denominator and hence decreasing your ownership share!
Are You Comfortable With Things Changing Too Often?
While, you might have imagined your work life to be pretty much on the same lines, like those who work in huge corporations, follow clearly laid out processes and are conditioned to repeat the same behavior every day!
Well, the case is quite different with startups. While the expectations of having a solid job title, desk assignments and reporting structure are to be laid down to rest, things like the office venue might also be changing at regular intervals. It is for you to understand the fact that the idea of a constant change is as much quintessential to the initial phase of the venture as anything else you came across.
Everything starts working fine, the moment you begin to embrace chaos. Yes, it will eventually reach the notch to be a company entrenched in its own ways, but that for sure will take some time. So without further ado, ask yourself, are you comfortable with things changing?
Some Introspection To Put The Seal
Yes, you are all frustrated and pumped up to quit your present job and make a grab for something that gives a worthwhile professional experience. A startup is definitely a good pick, but before anything else some self-examination should also be a part of this decision. A number of employees hear stories about people joining startups and breaking free from the shackles of office bureaucracy. However, you need to ask yourself, whether or not you will be comfortable in accepting failure, in case it happens. Everybody wants to be the big fish in the pond, but if being a big fish with different hats is what you desire, then a startup is the right place to be!
To sum it up, it’s not only about thinking, but acting as well. However, the situation requires for you to make sure that enough thought has been invested, before you open the doors to an opportunity as huge as working for a new venture.