Joining a start-up is a big decision for most people. A decision that involves not just what they want to do, but what the significant people around them want them to do, how it will impact their lives, plans, joint decisions etc. Somethings I would advise all people to consider before joining a start-up
1. the fundemental premise that the start-up needs to exist.
2. the other people in the company and how good they are as people to work with.
3. Funding - not just how much but from where is it coming?
4. incentives - does the company appreciate the risk you are taking and is it willing to compensate that risk realistically? Is the risk measured on similar lines on both sides of the table?
Of these I feel 1 is over rated. Most people tend to look at 1 which is not the primary reason startups fail. They usually fail because of bad organizational culture, an inability to recruit talent and faulty understanding of the funds it will take to achieve a goal.
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If not debt, then equity?
Given that my last post discourages entrepreneurs from raising debt apart from a few specific cases namely:- 1. Very high ROCE low risk bus...
I also feel one needs to do self-evaluation before joining a start-up. The most important factor being comfort factor with huge amount of uncertainty inherent to a startup.
ReplyDeleteI would like to add the 5th reason "glory" and trying to be part of something great.
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