The scenario of the world market has changed, earlier only established companies were trusted for doling out promising jobs. However, at the turn of the twentieth century we saw many new companies rushed in and became the world-wide hit like Amazon, Google, etc. Hence, today working for a startup company is a common experience. Especially with dot com industry startups have become epidemic. If you have a business idea, get funding, and you are done with a startup. You would either be a CEO or MD of that company, means becoming CEO or MD or Director now seems everyone’s cup of tea.
It is true that startups are setting up across the world and are becoming one of the best platforms to pay good salaries to their employees. But when the market fluctuates, startups lead the race to lay off their employees or shut the operations overnight. And it is happening on daily basis. So, before you seek a job in a startup, kindly do some research about that company!
Here is a handy guide for you as how to join a startup company.
Money in Bank:
Generally, startups work in a spell. For instance, from the first round of funding they will run for 18 to 24 months, then again based on their performance they would go ahead for the second round of funding. So, they keep on going for funding rounds and if at any round they fail to get funding then surviving becomes tough for them. Thus, a good startup should have enough funds in the bank, plus it should have some kind of back up i.e. earning revenue from their business idea or getting money from a property lease.
Some startups stick to a business idea that either has no value in current times or very less in the times to come. So, if the targeting market has minimal place for them, then eventually they will close down. Also, many startups jump in the race because of trends. However, the trend may not be the same after a year or so, for example fashion and real-estate industries often face ups and downs. These kinds of startups make a lot of money in their times but fail miserably during bad or recession time.
What VC is behind them?
There are some Venture Funding companies that do not waste their time with unwanted or unclear startups. Some of the good VCs are Sequoia, Greylock Partners, Benchmark, Accel Partners, etc. So, if you go to know who the VC behind them is, then predicting their and your future can be easy. Most of the times, startups do not reveal their VC.
Check their presence on social sites like FB, LinkedIn, etc. See what people are sharing or commenting about their stances in the market. Also check out what sort of behavior they keep towards their employees by reading reviews on sites like Glassdoor, Times Job Buzz, etc. Not all startups keep their employees happy.
Joining a startup company can be easy but when to leave a startup can be a tricky affair. While working in startups always keep your skills honed up and remain alert all time. You never know when and how the company may immolate you.