Ask These 3 Questions Before Joining that Start-Up

Many job candidates are turning to positions in start-ups over more traditional jobs. These new ventures offer more fun, intellectual rewards, and the possibility of big payoffs down the line. There are also more inherent risks. Before you take that great start-up job, ask these questions:

  • How many outstanding shares exist? Joining a start-up can have significant upside but you need to understand what percentage of the company you own. Ask how the number of shares you get compares to the number outstanding.
  • When will you see returns? Time flies in start-up land. When you get a job offer, make sure you understand how long it will take to actually receive the equity you're promised.
  • Does the team have a track record? Make sure you have a strong understanding of the team, their investors, and their advisers. Do they have what it takes to be successful?

Source: Harvard Business Publishing :Today's Management Tip was adapted from "Five Questions to Ask Before Joining that Start-up" by Dan Reich.

Nick Kalikajaros 2017