Should You Work At Startup?
Should You Work At Startup?
36: Heaven or hell...
Hello ladies, gents, cartoon animals, and others.
Question most people ask themselves during their career. Especially if you are working in the tech sales or coding part of the game. Sooner or later you will see the opportunity in the startup company.
How about an article on whether one should bother working in a startup?
When it comes to startups and working in one. It will either be heaven or hell. Rarely there is a “middle” like in most F500 companies. In the middle, in the sense that you have an intensive month or two, but then things slow down.
In the startup sense, there is always the possibility you will be picking up the team’s lunch, washing the founder’s car, or working in the role you choose.
We have seen everything over the years.
Should You?
Ultimate question. The answer is not straightforward. Unfortunately.
Startups have a huge potential when we are talking about a few factors. Rarely anything gets close when it comes to gaining experience, making huge money, and learning the ins and outs of the business. But there is a big risk that things could go south.
Throughout the whole article, we are going to draw a few parallels with the F500 companies. Of course, not all the F500 companies are the same (huge difference between F10 companies vs F400 companies) but you get the idea.
In a nutshell, we are going to be comparing the established company with something that is yet to become big.
When we are talking about startups one of the things you will have to keep in mind before even getting into one. Are you ready to learn everything on your own?
Most of them will not have SOPs, sales teams will often not have someone that already established the way to sell the product. Often you will be left on your own to do those kinds of stuff. In bigger companies, things are different since you will have someone to handhold you for a certain period.
Plus all the resources will be available the moment you “take over” the role. Guess what happens if you don’t learn or establish the procedures in a startup? You are gone. Especially if we are talking about VC-backed startups. They exactly know what they want. Profit.
If you are ready to work under high pressure and be a jack of all trades. Startups could be a good “environment” for you. Keep in mind that over 80% of startups fail. Which results in having a weaker CV when drawing parallels with the already established company (our F500 example).
What about the product?
Our favorite part when it comes to startups vs established companies. The truth that most don’t like to hear… If you will ever find yourself in the company of “startup” founders. The topic of product market fit.
Doesn't matter how good or fancy a solution you have if there is no real case for it. This is something we have been preaching on our Twitter for months at this point.
You are an SDR trying to sell something that no one wants to buy?
Good luck hitting your quota.
Picking the right product (company) determines a lot about success. This is crucial when we are talking about sales paths. It’s different if we are talking about the coding aspect of the game. But still, the importance of product-market fit can’t be “slept on”.
To wrap up the “intro” part. Highly motivated, stress-proof individuals who don’t mind being a jack of all trades?
A startup game could be the right move. You will also need a few more factors into the equation such as luck and having someone who will lead stuff in a good direction. Not so sure about it or do you prefer working an “easier” job and starting a side business? Go the “established route”. Not guaranteed it will be easier.
But when you compare it with the startup. That is correct in most cases. Another positive thing about the F500 route is that if done right will allow you access to the overall process structure, resources, and people.
Something that should not be overlooked.
What You Should Pay Attention To
Funding: This is the big one. The funding itself will play a huge role in what you will have access to. Most don’t realize how a startup game is different from F500. Just think about the tools and software you will be using.
No one wants to use the shitty prospect database, while the SDR in a “bigger” company will have access to Zoominfo. The easiest example we could think of but you get the picture.
Types of funding: Seed, Series A, Series B, and even series C. All of them are indicators of business growth through outside investments. Since this is not a startup article. We are leaving the research part to you. It matters in which startup phase.
VC-backed startup: Most often cut-throat environment. Hard to hire easy to fire. Direction is not based on “founders” input but instead on investors’ money meaning VC. Keep in mind if all the aspects (product fit, path going forward) are done right. Could be the golden ticket.
When it comes to funding you want big plays backing it up:
Founders fund
Sequoia Capital
Accel
Big player names = positive sign
Bootstrapping: We would recommend staying away from those. They may be the golden ticket. But they also may be the biggest experience/time sink you could think of. Be careful.
C-Suite / founders history: Let’s group them because of simplicity reasons. But the idea is simple. You want your decision makers to have a proven track record. Their history and sharpness matter a lot more than you think.
We have seen quite a few trust fund babies trying to run operations. Guess what that looks like after a year or two when the money runs out. Vouch for the decision-makers. It’s important for sustainability and the long term.
Product market fit: As mentioned in the intro part of the article. Will not repeat ourselves. Keep in mind: No market fit → no sales → no cashflow
Good luck selling something no one wants.
Ex-employee feedback: Key one if it’s already a startup that had few changes. What you want to do is find someone who used to work in the startup (same role if possible). Straight up ask for feedback and their opinion on how things are working out. One of the most effective ways to save yourself.
Innovation vs legacy: Is a startup product a new “thing” or you are going to be competing against the giants? Both of them have pros and cons. Innovations pull more towards new markets. While with the old ones, you will be going against those that have established credit. Also, it means customers will already know what is their budget and what they want.
Few more to take a look such as LTV, Churn, CLV… Most often hard to get numbers on those but possible.
In the end?
The most practical advice is to follow the cash.
There are thousands of startups with various types of funding and decision-makers. Most of them are burning it and running things into the ground. You must prevent getting yourself into one of those. Learn to position yourself as best as possible. Take what we mentioned above and put it into consideration.
Your Choice
At the end of the day, the choice will fall on you. Meaning you will have to learn how to vet the startup game and what works (or doesn’t).
As mentioned in the intro part either you will be having the best time of your life or it will be a living hell.
The experience along the way? Could be debatable.
Guys we know who survived a few years in the startup sense were great overall. Not in a certain role but they understood the business and how it operates. What it needs and what is missing to make something work. Not to even go into total compensation, stock, etc.
At the same time, we know quite who lost their time chasing the unicorn… The easiest way to describe how should one treat working in a startup?
It’s a high risk = high reward environment. Play at your own risk.
Practical tip before we wrap up
From the legend himself
is to make sure you are always checking the payslips. Don’t skip anything and make sure everything is on point when it comes to law. Tweet if you are interested.Want an advantage when it comes to startup games and where to look for one?
Angellist is a great starting point.
Trying to break into the tech sales game make sure to check out the:
The method goes great when combined with the Angellist.
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