Things to watch out for when working for a startup

Choosing your first job is always a task for any graduate. The reasons are not hard to guess.While the inputs are many the experience to assimilate the same are limited. In the Indian context the situation becomes more peculiar as most of the advice is solicited from friends, seniors and family members who might not be subject matter experts. The past couple of decades have seen a lot of change in Indian economic society especially in the context of career choices. Startups as a career option has moved out from the domain of only rich and has made its place in urban middle class as well. Startups intrinsically are risky and correctly evaluating that risk is still an art in its nascent age. For anybody at whatever stage, considering to work for a startup following pointers might just help:

Working for a startup: Idea endorsement

It is of paramount importance that any individual considering to work for any startup anywhere in the world fundamentally believes in the concept. Startups typically are short on resources of every kind and hence optimal use of all the resources becomes necessity for success. It is a big disservice to any startup when an individual disenchanted from core mission chooses to work for a startup eventually leading to loss of time for both parties.

Working for a startup:High motivation

This might seem like a tick mark criteria but is a necessity to survive in any startup. Startups can be emotionally exhausting. Your day could change in matter of minutes and it is therefore necessary to keep up the spirits and momentum. A lot of experienced people working for startups complain of burn outs due to the emotional roller coaster. It is only prudent for a fresh graduate to consider this before joining the band wagon.

Working for a startup: Team

There is a reason why all the greatest VCs across the world put a lot of preference on the founding team. There are limited things to evaluate in an early stage startup. A lot of focus is on team to deliver and it takes a versatile, well-organized and focused team to execute diligently day in day out. So while considering an opportunity with an early stage startup put a disproportionate amount of weightage to the team. And while evaluating just don’t consider educational or professional pedigree. It can serve as a good starting point and definitely carries weight but also consider the outcome of their previous assignments. Also look for diversity in skill sets as you can’t create a successful company in the absence of it.

Working for a startup: Chaotic but not ambiguous

Often in your first job after graduation students expect a lot of learning from the job. The medium of this learning could include peers, mentors, employee learning programs etc. While this would be the case for corporates of certain sizes and maybe some startups, for most of the early stage startups this is far from true. Most of the learning in startups happen on the job which means faster decision making at a very early stage of your career. ‘Fail fast’ is term rightfully coined in Silicon Valley where speed of execution could define your success chances. Combined with that is shifting goalposts of startups attributed to their agility which forms a formidable weapon in their arsenal against more established competitors. A lot of time people find it difficult to cope with this chaotic nature. Therefore this becomes an important point to consider before you decide to take the plunge.

Working for a startup:Work life balance

While a lot of startups have now started boasting of healthy work life balance, this seems more like a wish than a reality for a startup. It is almost like a luxury it can’t afford. Come to think of it even some of the most established industries can’t really guarantee that. With the advent of the digital age, most of us are anyways online for good part of our day unless you are working in France. Bottom line, work life balance can take a hit if you are working for a startup and in case if that is not the case, you would certainly want to keep your lucky charm for longer time.

Working for a startup: Vision alignment

This might be true as per the stage of the startup. In case one is joining an early stage startup than there is all possibility of working directly with the leadership team while for startup at an advanced stage probability of dealing with mid management is higher. Whichever be the case, it is necessary for the vision to be aligned. This is true not only for an individual with his team and boss but also between the team and CXOs and as the permutations and combinations may be. History is replete with examples of companies with great ideas and products but poor execution eventually leading to their demises. For superior execution it is important that the every employee of the company from the topmost to the bottommost is aligned with the larger vision and strives to execute the same.

Working for a startup: Financial health

There is no harm in accessing financial viability of any startup. Often it is an uphill task as information is not easily available. It is advisable and mostly encouraged to ask pertinent questions about business model and future plans. Some of the founders are offended by such questions which might hamper chances to work for such startups. But then it is also a clear indication to avoid working for such startups.

Working for a startup:Compensation structure

In case you are wondering why the point is even mentioned it’s obvious. Specific point that needs to be kept in mind is weather the compensation structure includes stock options. Inclusion of stock options in the compensation structure validates concerns for both parties. From the employees’ perspective it is a clear indication that in the event of company’s success, it wants its employees to be part of that growth. From an employer’s perspective it ensures skin in the game for every employee. Employee stock ownership plan popularly known as ESOP is a sophisticated way of rewarding employee. While most of the startups internationally set aside the pool, the practice is still in early stage of adoption in India.

Working for a startup:Parting comments

Working in an early stage startup is far from easy. There would be 100 reasons every day to go for that plush cushy job your friend keeps boasting about. There might be absolutely no reason to continue slogging hard in a startup with uncertain future, but your will. The pressure can get to anyone easily but it is the passion and the cause that keeps up the driving force. All the points mentioned above help you prepare in terms of what to look and prepare for but things can still go wrong. And yet it is the fulfilling experience of building something from ground zero, to grind hard every single day in shaping it and finally taking it to heights you envisioned which drives individuals. Therefore the foremost point to answer before taking a plunge in that early stage startup is ‘Do you really want it?’