Questions one should ask before joining a Startup
1. Ask a lot about the product/idea. Are they solving a problem? Are there other companies already solving the problem, if so how is the startup you are about to join different?
2. Enquire as to how well the company is funded? In what stage of funding are they in? To understand the basics as to how funding works go through http://fundersandfounders.com/how-funding-works-splitting-equity/ Google and know more about funding and various stages of funding.
3. If the startup is funded how long will the money raised help the startup run? How is the company planning to spend the funding? Running out of cash is one of the prime reasons why startups fail.
4. How many founders/co-founders are there? Startups with more than one founder have a better chance to succeed. Get to know your founders from their LinkedIn, Twitter, FB and other social medium. From their social profiles there is a chance that you can get to know if both the founders have a solid relationship (Work Buddies, College Buddies etc). It’s better that they do as there will always be one who will be constructively opposing the other one.
5. What’s the revenue generation plan? Having millions of active users in one thing, but converting that to revenue is another. Everything.me with 15 million app installs was shut down recently. (http://tech.eu/brief/israeli-startup-everythingme-shuts-down/).
Questions you should ask yourself:
1. Are you ready to work for long hours with passion?
2. Is there a market need for such product or idea? The prime reason for a startup to fail is the lack of a market need for their product. Do some research (Google can give you lot of data), ask some of your friends/family in similar field and get their opinion.
3. Does the idea or product excite you? Are YOU absolutely convinced or sold to the idea?
That’s it.
From my experience above are some of the questions I wish I had asked before joining a startup. As my experience grows may be more will popup.
