10 Signs You're Not Cut Out To Work At A Startup
Working at a startup can sound alluring -- building a business from scratch, sharing a passion with a tight team to create the next big thing, and potentially reaping millions of dollars with a successful IPO. But not everyone is cut out for startup culture -- are you?
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Venture capitalists spent $58.8 billion on US startups last year, making it the second highest amount in the last 20 years, according to a PricewaterhouseCoopers and National Venture Capital Association report. With that much money being kicked around, it's not surprising that the allure of working at a startup is even stronger for software engineers, developers, and other professionals in technology.
"We're located in the (San Francisco) Bay Area and primarily work with startups. I would say that 90% of the engineers we talk to are interested in working at startups," said Cody Voellinger, founder of tech recruiting firm RockIT Recruiting. "Even people who have cushy jobs and stock options want to talk with us because they want to have a pulse on things. They know where they are now is not where they want to be for the long-term."
[See Top 10 Tech IPOs of 2015.]
But will they be a good fit for startups? Wanting to work at a startup is one thing, but having the right attitude, culture fit, and personality is another.
"Engineers like to solve challenges and that is the environment they will constantly face. But startups have limited time and resources, so it makes it a challenge to do more with less, Voellinger observed.
All in all, he estimates that for every 100 people he interviews for a startup position, 75% have the right attitude to work at a startup. "Occasionally, people don't understand what it means and see stars in their eyes from all the success stories," noted Voellinger.
Do you think you have the right mix of personality, attitude, and perspective to work at a startup? Here are 10 warning signs to assess if you would be a good fit.
Do you have what it takes to survive and thrive at a startup? Did we leave any warnings signs out? Let us know in the comments.
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Startups are often thinly staffed and low on available resources in the early stages of growth, so if you're the type that relies on colleagues in other departments, internal tools, and a well-developed process to complete your own project, well, then you may struggle at a startup, Voellinger said. "Oftentimes a single person is responsible for idea through execution," he added.
Venky Ganesan, managing director at venture capital firm Menlo Ventures, agrees. He noted techies who "need a lot of structure and process to feel comfortable" in a work environment would have trouble surviving at a startup.
While you may embrace the notion of working in a fast-paced, chaotic work environment at a startup that may or may not survive in a year, if you're the kind that values an employer's 3% matching contribution to your 401K over a potential windfall should your startup launch an IPO or be acquired, then a startup is not for you, Voellinger said.
If you're fanatical about working with specific tools or technologies, then you're out of luck. Startups regularly -- emphasis on regularly -- change the technologies they use to meet the changing needs of their product and clients. "You should be open to discussing and using the best tool for the job in every scenario," Voellinger said.
Does it irk you to no end when you're dropping names of uber-cool, up-and-coming restaurants you've eaten at and you get a blank face response from friends and family members? Then startups are not for you. "Chances are you will spend a lot of time explaining to people close to you why you joined this no-name company," Voellinger said.
Two key traits of a startup can also be the same traits that may ultimately chase you away from working at one. If you are "uncomfortable with ambiguity or quick changes in direction," then don't work at a startup, advised Menlo Ventures' Ganesan.
Voellinger held a similar view. "Startups pivot. Sometimes these changes are small, sometimes the company's product and mission change completely," he said. "You are constantly testing ideas and changing strategy depending on the results."
As perfect as you are, do you need everything that you touch to be perfect as well? In a startup culture, perfection and speed are in constant balance and compromise. "If you can't turn in a project before you think it is 'perfect,' then you won't keep up with deadlines and won't be happy," Voellinger said.
Startups by nature are a risky proposition, given that 90% fail, according to a report in Fortune. That is often due to a startup lacking a market for its product or services, which in turn can affect its ability to land a big funding round from a venture capital firm to keep its operation afloat and growing. As a result, risk-averse workers need not apply.
Early stage companies that have yet to land angel funding and are being supported by the founder's bootstraps are likely to offer a slice of equity in the company and a promise of eventually receiving a paycheck -- once the company lands funding, or ships enough products or services. Generally, only those tech professionals who have personally seen others strike it rich with a startup, or were previously lucky enough to have the process happen to them at a prior startup, are willing to take a chance and work for no pay until the company generates some revenue or snags funding.
Facebook's mantra in the early days used to be "move fast and break things," said Katie Hughes, talent partner at venture capital firm DFJ. This willingness to fail, with the goal of learning from failure in order to achieve success, is pervasive throughout Silicon Valley. "That can be hard for people who have been working in companies who demonize failure. They would rather play it safe than try something that doesn't work," Hughes said. "Core drivers (of startup applicants) are the desire to build things and a willingness to try things quickly and fail."
Chaos for some is a comfortable environment. For others, they want to run away screaming. Organized chaos is often the norm at startups. Hughes said prospective startup candidates need to be comfortable working with a lot of moving parts. "It can be a little like whack-a-mole. Once you finish one problem set, another crops up," said Hughes.
Chaos for some is a comfortable environment. For others, they want to run away screaming. Organized chaos is often the norm at startups. Hughes said prospective startup candidates need to be comfortable working with a lot of moving parts. "It can be a little like whack-a-mole. Once you finish one problem set, another crops up," said Hughes.
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