8 Questions to Ask Before Working at a Startup
Regardless of company size, it’s always essential to equip yourself with knowledge about a company’s background and role during the interview process. You need to establish how your career goals mesh with the objectives of the company or you’re just setting yourself up for failure.
Whether you’re interviewing with a Fortune 500 company or a tech startup with some fresh VC money, executing your due diligence and coming into interviews with pointed questions will help flush out if this is truly the opportunity for you. The big difference with the latter scenario is that tech startups have a higher degree of risk, and potential reward, so really digging deep on questions and concerns is crucial.
If you’re looking to take a role with a startup ask yourself these 8 questions. And, if you’re a startup looking to recruit the best talent, be prepared to answer these candidate questions.
Who is the CEO?
Startup CEOs are relied upon to set a unified vision and culture and ensure the business has capital and is on good financial footing. When the headcount is still low and the long-term vision is still being solidified, all eyes are on the CEO and what they can do. TechCrunch published an article saying that “85% of startups fail, but if the CEO has built and sold a startup before, the odds go down 25%.”
So it’s a wise bet to start researching who the CEO is, if they have built anything (and sold it) before as well as their professional pedigree. Additionally, check out the backgrounds of the management team — investors look at this for a reason and so should you!
Do they have good funding?
If a company is not on solid financial ground then long-term planning is compromised for short-term quick-hit trade-offs. It’s important to look beyond if they’re backed by a venture capitalist firm. VC money is quite common, especially in tech. Look at who is investing their money, who is on the Board of Directors and where they have previously invested their money, and how well those past investments have done.
What is the vision of the company?
It can be difficult to wake up every day and drag yourself into work for a company whose vision you’re not on board with. That’s why a lot of people quit the 9–5 grind. At the end of the day, you need to answer the following questions:
- Do you believe in the company’s vision?
- Has the CEO fully communicated the overall mission and long-term focus?
- Is this something you can get behind and truly believe in?
- Could you use this product or service? Would you truthfully recommend it?
- Do they have a proven customer base and have demonstrated revenues?
What stage are they in?
This is a no-brainer, but it’s important to understand where they are in their evolutionary startup lifespan. If they are an early-stage company with no budget and no proven track record, the runway might be short. However, if they have recurring revenues and a growing customer base, you’ll be in the sweet spot of a scaling business. At the end of the day, this is all about personal risk tolerance.
Have they shown fast growth?
This is where your external research like tech blogs and publications will come in handy. Depending on the relationship with the hiring manager, you can even outright ask them what kinds of growth they’ve seen over the past while to determine if this is in an area that will allow leeway for future growth.
Who is their target demographic?
This is a crucial aspect that often gets overlooked. Startups have created a business plan that is focused on solving the pain points of a specific demographic or target audience. Ask yourself if this is something you can add value to, whether it be through experience or general interest.
What is the path to profit?
Will they IPO? What is the exit strategy? Obviously, it won’t be easy to get this type of information from them in an interview, but if an offer has been made then it’s important to get a clear gauge on this. You can also get a clearer picture by figuring out their growth and what stage they’re in.
What are the parameters of your role?
Unlike working as a specialist for a massive Fortune100, you’ll be wearing many different hats in this smaller environment, so it’s important to know what your core responsibilities are and if they fit into your career puzzle.
Try asking these three questions to help uncover what this role will be like in your overall career progression.
- What would success in this job look like?
- Where would it lead?
- What will I need to demonstrate in order to get more responsibility?
With all that being said, it is also vital to make sure you see your personality meshing with the team and overall company vision. Your deliverables and team interactions will be magnified within the structure of a smaller workplace so it’s even more important to like what you do and who you work with. Startups can provide accelerated career development and ample opportunities to leverage your skills and creativity, but you need to do your due diligence before committing to working for one.
Looking to join a cutting-edge tech startup? Check out our available opportunities and get in touch with our executive recruiters today.
