Startups keep attracting more and more engineering and tech talents motivated by the idea of making an impact, taking up exciting challenges and feeling part of a big family. But in a very competitive landscape with high failure rates, how to pick the right startup that will boost your career?
Has the era of top engineers’ migration to big brands come to and end? Nowadays, tech giants are facing a fierce competition from startups when it comes to talents. Competitive base salaries and perks are no longer enough to impress young generations of passionate engineers seeking to be part of something bigger and feel in charge. If the Covid-19 crisis increased the need for job security and a solid career plan for some — which is totally valid — for others though it brought up some serious questions about what they want to achieve in life and the meaning of their job.
Beyond the excitement of contributing to a promising business and the cliché of a foosball table in the break room, startups do offer a range of interesting possibilities: a creative and dynamic environment, a more flattened hierarchy, more flexibility, a growth potential, varied responsibilities, the opportunity to build up new uses and products from the latest technologies and to develop a broad skill set. On the paper, for sure it’s all fun and games. However, the reality isn’t always so bright, especially when you realize that 30% of startups fail after 2 years*. Just like big corporations, small companies aren’t all equal. Does the startup environment strongly appeal to you or raise some doubts about your career path? Before taking the plunge, here are the things you should take into consideration to pick the right startup for you.
How is the leadership?
A startup is by definition a business experiment conducted by its founders. It is therefore critical to do some serious research about the persons that will embody and run the business. What is their academic background? What is their professional experience? What skills do they have in business and people management? What specific knowledge do they bring to the field the company operates in? What do they truly master of their own technology? As a startup engineer, you’ll be expected to solve problems on a regular basis, to provide solutions and reveal the potential as well as the limits of technology. How well will they understand what you’re explaining and the solutions/ideas you’re coming up with?
The structure the startup can also reveal potential red flags, especially in a friendly informal work environment where roles and responsibilities can be blurred. In small startups, you’ll likely work directly with the leadership team while a 50-person company will have more management levels. Who makes the final decisions? Who’s the technical leader? Who do you report to? This will also highlight the management style they go for and the potential boundaries you will encounter in your position.
How does the product/service fit to the market?
Among the common reasons of failure, the lack of product-market fit is number one as it represents 34% of the startups that crashed*. Most startups are based on innovation, which means that they’re built on uncertainty. They are testing new products, technologies or markets with significant risk that the business never takes off. Fortunately, the level of uncertainty can be reduced with solid business plans. Has the company deeply studied its targeted market? Is the product/service filling a need or bringing something new to meet a demand? Will customers be ready to pay for what you offer?
An innovative idea isn’t enough: many great products have failed over the decades because they were ahead of their time or simply not affordable in the consumer’s view. Google Glass is a sadly relevant example that groundbreaking technology and an innovative product don’t always lead to success. Take the time to assess the potential of the startups you’re eager to work at in the most pragmatic way. Do not put your focus on the attractiveness of their business only, make sure it’s a viable one.
What is the marketing budget?
And more generally, is there a solid marketing plan on the table? Marketing flaws come in second position in the common causes of failure with 22%*. Creating the right product/service for the market is crucial, making it known and appealing is just as important. So many startups invest every cent on their technology and forget that they will have to promote it afterwards which implies significant costs if you’re willing to reach a broad clientele.
Whenever considering a startup for a job, it’s always useful to check out what kind of budget they plan to allocate to marketing and what communication strategy they have — or not — built. Have they picked the right target? How do they plan to communicate towards their prospects, through which channels and media? How will they dispatch the budget on the different initiatives? Have they chosen the right tone for their communication? Do they have a strong network already or is there everything to build from scratch? The answers to these questions will give you a stronger idea of the company’s potential and how well they know their public.
What does the future look like?
Working in a very dynamic and creative environment will normally allow you to become more versatile: you will be in charge of varied missions and develop skills beyond your comfort zone, which is quite enriching for your personal growth. But how does it translate into your career?
Chances are after a few years you’ll be willing to change jobs, whether to reach a higher position with more responsibilities or to broaden your fields of action. And when that time comes, you’d better be ready. If you intend to work at the same startup for a certain amount on time, are you sure there are opportunities to evolve? Are there or will there be interesting positions matching the experience acquired? Can you expect a salary raise and other benefits in the future? Will there be new challenges and stimulating projects over the years?
On the other hand, if you think that you might want to transition from startup to corporate someday, will your experience be relevant? How will you value yourself in the job market? Working in a small niche or on very specific technologies for years might shrink your career opportunities afterwards, unless you’re willing to specialize in that very specific field. Before making any decision, really think about where you see yourself in 5 years and which kind of environment and missions will fulfill your ambitions.
Author: Sophie Vande Kerkhove – Content Manager
*Startup Failure Rate: Ultimate Report + Infographic [2020], https://www.failory.com/blog/startup-failure-rate
