ENTREPRENEUR: Essential Pre-Launch Strategies, to Join a StartUp
No one likes being dominated when it comes to doing a particular piece of work his own way... Startups, break the monotony of a typical work sector, providing much ease and comfort to its employees... A startup company, though, cannot be explained in much detail as each startup company works in a different way...is undoubtedly a great career option to opt for as it has not many competitors in the market...The best part of any startup company is that it keeps evolving with the changing time...
It's a whole new sensation to the young generation, cause people crave for such an ambience at the workplace. But as we all know, " All that glitters is not gold"... similarly, everything might not be as cool and happening as it appears to be... Hence a good amount of research needs to be done about the startup company so that the roller coaster of your life only finds its way up with time and not vice-versa. So the 5 cautions or the calculative steps one needs to pre-assume before entrepreneurship are:
A good, detailed study of the product and service offerings and its Unique Selling Proportion (USP) needs to be done before thinking of joining the startup. The particular firm must be innovative and provide benefits both technologically and economically to its consumers and win the confidence of their targeted consumers.
It’s important to know your job description, key result areas (KRAs) and the role in an organisation before joining it. However, because start-ups tend to be short on human resources and other resources also, especially during the initial stage. Efficient utilization of each resource often entails a varied set of responsibilities. As roles are flexible and likely to change rapidly, those who dislike ambiguity should stay away from start-ups. Even if one is willing to go beyond the stated KRAs and take additional responsibilities it would be better to know about their expectation from the leaders about the employee role and job profile.
A startup company will always be prone to many risks, as there is no certainty of market growth and competition may creep in any time... hence one should prepare himself both mentally and financially before entering the firm to face the harsh consequences if need be.. also since it is a startup, one may have to go on working without pay for several months as the company may take some time to establish itself in the market.
The entrepreneurial organization offer various perks and compensation benefits to their employees. Perks such as employee stock options (ESOPs) are often used to attract talent. ESOPs, pay off once the Start-up establishes its credentials and draws in investors. However, there’s always the risk of losing out if the start-up does not succeed.
Very few start-ups reach a stage where the shares can be sold at a good price so it shouldn’t be the only reason to join a company. One needs to carefully consider the compensation package being offered, and if one is not satisfied with it, then he/she must negotiate a change in its structure—opt for fixed pay, instead of ESOPs.
High attrition i.e. investors backing out from the Start-up, is never a good sign in any company. Particularly so in a start-up, where people join with the expectation of growing with the company. There are several cases where even the founder left start-up which is very bad news for prospective employees. Before joining a start-up, the aspiring employee must find out about exits from the company, especially that of board members and top management and middle management layoffs in the past 1-2 years.
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The initial members or founders of the company set up the work culture or the company culture inside the office. Therefore before joining the company one should have a sound knowledge about the company culture on how they work, how they behave with each other. The work culture of a big company always differs from that of a small company like Start-ups, where employees are relatively more friendly as compared to big companies.
Societal/Political and Economic Impact:
According to consumer psychology, people tend to remember or prefer those ideas which have left a powerful influence on their mind. The firms which are able to leave a greater impact tend to get major boost ups from the government or policymakers.
Promoter Credentials, Track Record, Investors and Management Team
The fundraising strategies and the background of the investors need to be known well as it may have an impact on the preferability of the agenda in the longer run. A variety of experience and expertise might be brought by investors when they are global. A careful evaluation should be done on the track record and credentials of the promoter and the management team. This is one of the most important parameters that should be considered while making a decision on whether to join a particular firm or not.
Market Growth Rate of the Product/Service and its Potential too grow:
One always makes it a point to get into an organization which has some minimal reputation or social standing in the market or has the probability to establish itself soon. Scalability of the product or service is critical to take a decision on whether the firm can sustain the short term and long term headwinds in the industry or market. One needs to evaluate whether the offering is a copycat or new innovation which is first of its kind in the market, as it means a lot if the organisation is a leader or follower in the industry.
Working for any Startup can be both beneficial and risky as the future of any start-up always remains ambiguous. The better the investors and management the longer will be the survival of the company in the market. Moreover the start can teach some life-changing qualities which can be handy in the near future.
Therefore the careful selection of start-up and proper research should be done regarding the company as there always remains uncertainty to its survival.