How to Know if a Start-Up is Right for You

Published by Ryan Healy on May 8th, 2008 in Career Development, Entrepreneurship | 6 Comments

Leaving your large company to join a start-up is never an easy decision to make. You have to take many factors into consideration, including your tolerance for risk, how much cash you have in the bank, your family situation, student loans, and lots of other things.

When I left IBM to form a 3-person start-up, I had already thought this stuff through and I knew it was the right time in my life. But everything I've learned about start-up life since then is unbelievable, so here are just four of those things to consider before you ditch your large company for life in a start-up.

1. Do you really like the people?

When you interview, you must make sure you like the people in the company. And I don't mean just sort of like the people, you have to really really like your co-workers if you're joining a small team. So the interview process should be much more of a two-way interview than if you were interviewing with a large company. You need to interview them as much, if not more, than they are interviewing you.

As an entry level recruit at a large company, there's a good chance you will interview with a random HR person, only to never even see them again after you start work, so the personal connection is not that important. But when you interview for a start-up, you WILL work with your interviewer on a regular basis, and you will spend an insane amount of time with everyone you meet so you better like them, and they better like you.

2 . Do they want you to negotiate?

I believe everyone should try to negotiate salary, no matter what size company and no matter where you fall on the totem pole. It can't hurt to try and get a little more cash, options or benefits. But when you interview for a start-up, you can't just try–you must negotiate for every penny you can, and it's important because the company should expect you to negotiate.

At a start-up, everyone needs to be a self-starter, and everyone needs to be somewhat business savvy. Taking the initiative to negotiate and not back down easily is important, and the good start-ups will recognize your negotiations as a good sign for the future, even if they think you're a pain in the ass. So try to get those stock options, and remember, DON'T GIVE THE FIRST NUMBER.

3. Do you live to work or do you work to live?

If you want to make a good paycheck, you've got to work a lot of hours, no matter what size company you're at. But in a large company, anyone with some street smarts can figure out how to "work the system" and get by with a typical 8 hour day.

In a start-up, there is no working the system, there's just a lot of work. So if you love the thrill of working around the clock, you're competitive and you're achievement oriented, 12 hours a day at a start-up could be the place for you.

4. Can you handle uncertainty?

In a start-up, there is always uncertainty. There's uncertainty about next month, next week and even tomorrow. There's no telling if your company will even make payroll every other week. And there is always that slight chance that the CEO will walk in the room and say, "Guys, the game is over."

But with uncertainty comes excitement. Sure it may make you a little anxious or nervous, but it's a thrill. If you're reading this and thinking, "How is uncertainty about a paycheck a thrill?"– it's probably time for you to stop dreaming about a start-up. But if it's making just a little sense, then it may just be time for you to get out there and start networking with some entrepreneurs.

Good Luck.