The startup world is growing larger now and many people are thinking about joining these new businesses. If you are presented with this exciting opportunity to be one of their first new hires, remember to ask these three questions before you quit your current job and jump in with both feet.
1 Is the business a solid venture?
Find out more about the business idea. Founders may paint it like it is best new idea in the world, but you would still need to put on your practical thinking cap and consider whether it really is a feasible idea. Do your research about the niche – is it a trending one, are there demands for it? If possible, ask the founder for market research to back up his or her claims that it’s going to be a successful venture.
2 Are the people leading and running the startup reliable?
It’s a good idea to politely inquire the founders and other executives about their backgrounds, experience, and expertise. How do these translate into making the company a success? If they are high profile individuals, you can usually find information about them online. How are their other businesses doing? What is their track record? Should you find that they have been legally convicted or they have been involved in questionable activities, see this is as a red flag.
3 Where are they getting the funds?
Get a rough idea of how they are getting their capital. Are they taking a startup loan from a bank? Do they have angel investors? Or are they relying on crowd funding? Again, do your research and ask around. If their money source is questionable, it may be best to give this a miss as well.