Startups are fun, startups are sexy, startups are for rock stars.
Feels good? But then, there are practicalities that one should realize before joining a startup. Here are a few observations (and you are welcome to disagree!)
- When the age difference between founder and you is very very high.
You are in early 20s. He is in late 40s. Well, before your mind starts wandering in “some” other direction, let me clarify – I am talking about the age difference between you and the startup founder.How does age difference matter? Well, as we grow old, our ability to soak new ideas start diminishing (disagree? I know we all do!).
Most of us enter a ‘been there done that” zone. And what eventually happens is that (oldie) startup founders, no matter how open they sound are NOT that open.
They have a certain idea about the product and most of the times, refuse to make those ideas “editable”.So, if you have great ideas, but are shot down (for reasons vague) – you end up with a WTF feeling!.
But if the age difference isn’t huge, you can actually be a part of the decision making process (since even the founder is learning the tricks of the trade and he needs inputs from others!) - Loaded with responsibilities, but not the matching “tag”?
Here is what happens (most of the times)– The moment you join a startup, you get loaded with responsibilities (and opportunities), and you start exploring a new dimension of yours. While the honeymoon was fun, marriage gets a little bitter. What eventually happens is that startup starts growing and the management kills your honeymoon by hiring a dickhead (read ‘boss’) above you.
And your stature is reduced to a regular guy – which will obviously leave you disappointed.The other side of the story is that
if you have made a huge mark, you might actually get the “tag”.
Yes, the risk is worth taking, but be ready for the other option as well. Don’t go by red canvas that was painted during the interview process!
- If you enjoy authority, think twice!
Startups are lean on people. You might be the master of self and boss of none. Personally speaking, I have worked in a startup where the dickhead wanted too many people reporting to him. Eventually, that led to frustration and the result? the dickhead got fired!! But not all startups are that responsive. So, do a reality check on what passionates you about the startup – if it’s more authority, join Infy (and there is nothing wrong with it!) - Equity vs. Salary
Few weeks back, few of my friends sold their company for a huge amount of money. Great. So all the employees went away cash rich?
Wrong.
It was 90% cash deal – so that essentially means that the founders made huge amount of money (they actually did!), but employees didn’t.
While you can’t predict the fate of a startup, atleast get a decent balance on salary vs. ESOPs (even if founders tell you the other way round!)
Remember – even if the founder tells you that you are part of the founding team (and blahs), take that with a pinch of salt.
Always remember that you are an employee and not the founder – Sad, but true! - Need some loan?
Well, if you have financial obligations and you need financial loans (housing/personal etc) – do it before you join the startup. An example that I know – ICICI was ready to offer personal loan @ 11% to a friend (while he was working in IBM), but when he joined a startup, the same bank said “Take it @ 18.5% or leave it!”.
Point that I am trying to drive here is that startups are not the preferred customers of these banks and one should be really smart enough to get the benefits while with the biggies.
Excellent post. Echoed some of my concerns when I was evaluating joining a startup.
Observations ! – Now that’s what really hooks me to your site
Great post – I especially liked the age different part – most of the startup founders “THINK” they are open to ideas, but actually very few are!
Its really important to know what one is getting into. There is no point in joining a startup and not getting teh desired outcome – I’d rather Infy/Wipro etc. and earn some $$ rather than stay frustrated in a startup (@ the risk of job)
One point missed: Startups are great places to learn a lot for youngsters. This is because they are doing pretty much everything in the Company. Although their ideas may get killed for whatever reasons, they will always be in the know about decision making as well as strategy etc.
A founder’s perspective on startup employees:
- In India, risk appetite is very low from employees, hence good talent hard to attract into startups
- Employees don’t appreciate esops as part of compensation at all; I understand that this is because India hasn’t seen much wealth creation from esops
- Commitment levels & loyalties to “ideas” are not as great as seen in silicon valley
I think that startups in India (or anywhere for that matter) should hire as few employees are possible and outsource as much as possible.
A few more points
1) If you are fussy about your place of work then think again. Especially in an early stage startup what you’ll get a very messy garage type office where you get your own desk if you are lucky. There will be frequent power cuts and internet downtime. So if you need a professional environment to perform then a pre VC startup is not for you.
2) If you are used to status reporting and weekly time sheets, then think again. In a startup there’ll be no one driving you. So if you are not self driven, you’ll be in a wrong place.
3) If you or anyone in your family is looking to get married then think again. The market value decreases considerably if you are not in a big brand company or a MNC.
4) Work Life Balance, PMP, CMMI, Quality, Documentation etc. do not have any significance in a startup. If you value them too much, pls. think again.
I could go on and on…
@Deepak: Great stuff! I agree with your statement “India hasn’t seen much wealth creation from esops” – At the same time, most of Indian startups are in a hurry to sell off and make a quick exit. So, these stories never get a good PR (e.g how many of us know the numbers behind jobsahead acquisition?)
@Rajiv – Awesome points. Believe it or not, I actually wrote the marriage point but then removed it later
Yes, ppl need to decide on what they really want to do, and anybody who loves filling timesheets (or TPS reports(courtesy “office space”)!) will be a disaster in startup environment.
Can relate with several things mentioned here (as an entrepreneur).
And about people who say “I’m very open”…(considering I observe people for a living), the ones who explicitly say this, are the ones who are least likely to be open!
Ashish,
Excellent points mentioned here…
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Hi, excellent points given, really enjoyed reading it, and yes also related well with almost all the points…..
About the age difference….
About banks giving loans…..or even credit cards….i couldn’t get my credit card application approved even after getting a good salary….
About the work environment……ya true faced frequent power disconnections and surges and scorching summer heat……..
also about the pink dreams that you get to see in the interview….
but then also you get to learn a lot in startups……you are not having the brand but yes you are having the substance…….
Working for a start up is a great first step for a lot before u start u’r own … u can learn what to NOT do when u do your own
I suggest one should add to the list … the firm’s revenue, cost and funding model … 99% just run our of money … it is best u understand (& judge) that.
Start ups probably fall in 3 buckets … early stage, emerging & pre-IPO … u’r strategy clearly depends on the stage they are in … and u’r role …
Again, if entrepreneurship & living on the edge is in your “jatakam” … working for a failed start up is the best first step for long term success … u can learn what to NOT do when u do your own
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Interesting points… helpful for the startups..
Apart from the above points, I always consider another before joining:
- Culture Qoutient: How geeky/fun/laid-back/serious is the company.
Having a common culture throughout the company is something I look for.
Many good points [both in the post and in the comments] I could relate to very much.
Some of the other challenges I notice in start-up related HR activities is:
Exp-folks think that start-up are their to splurge money. Its almost like banks asking for 18% compared to 11%!!
Though I find many more younger minds willing to join a start-up these days [Its a cool-thing now-a-days].
Problem with too many enthusiatic – well knit – relatively fresh crowd is you’ll have no professional ethics regarding maintaining personal confidentiality and information exchange. This can pose a huge threat, when the company decides move up a notch in HR practices or else end-up as a socialist organisation.
Although age difference can be a problem it doesn’t necessarily have to be. Looking at things through two different perspectives can help you be more successful. You can get rid of some of the product’s flaws by playing devil’s advocate.
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