Risk vs. Reward - Choosing Your Startup #4

For the next few weeks, we're going to be featuring a five part series by Sally Bolig, Head of Talent Acquisition at Yotpo. Stay tuned to learn more about how to decide if the startup life is for you!


Case-by-case
Friends and family sometimes recommend questions to ask, but for those my suggestions are the following. Don’t ask questions you won’t truly understand the answers to. Such questions might include ones around ARR or burn rate.

Also, refrain from asking the following unless you feel that given the conversation you have already had, the questions are appropriate and relevant ones.

Some companies won’t be comfortable disclosing the following information and it’s important for you to know that it is not a red flag if they don’t. It will be entirely company-dependent.


1. How are quotas determined?
Asking about quota attainment is the right thing to do, but asking how those quotas are determined can be perceived as inquiring into intimate information in regards to company growth, specific employee success and failure, and a number of other things that aren’t appropriate to explore during an interview.

High level answer - generally quotas are determined by assessing the existing success of a team, then setting goals that will allow them to perform but also be challenged.


2. What is your company’s burn rate?
If the company hasn’t raised money in a while (i.e. over two years), it’s worth asking about the plan for the company and the end-goal they’re looking to meet. This gives you insight into burn rate without asking specifically that.

People often ask about burn rate because they want to know whether the company’s future looks bright or gloomy. You can accomplish an understanding of this through the first-tier questions above. That being said, if you understand the logistics around burn rate, some companies will be comfortable speaking to details around it.


3. What is your company’s ARR (annual recurring revenue)?
This question is asked for the same reason people ask about burn rate. Although ARR is something companies share with their employees, it’s often not something shared during an interview.


4. Equity Expectations
It is absolutely fine to ask whether equity is a component of the package, but you shouldn’t assume it will be. Numerous startups nowadays are offering equity to every person who comes on board as a demonstration of “investment in each employee.”

But there’s a lot to be said for offering equity exclusively to employees who have put in the time to demonstrate an investment in his or her company, rather than the moment he or she walked through the door.

Risk vs. Reward - Choosing Your Startup #5

For the next few weeks, we're going to be featuring a five part series by Sally Bolig, Head of Talent Acquisition at Yotpo. Stay tuned to learn more about how to decide if the startup life is for you!


Don’t ask
1. Is this co-founder the real deal?
Use Glassdoor to explore CEO approval ratings. Look directly below the star rating for “Approve of CEO” to see what previous and current employees are saying. Do your due diligence in regards to looking through the CEO’s experience and reading articles he or she has been featured in or written.

It’s a silly question to ask in an interview because there is so much research you could have done in advance, and it’s also a nearly impossible thing to concisely answer.

Absolutely ask questions around the CEO’s involvement with the company and on an individual basis, or even about his or her personality, but avoid asking whether they’re capable of running their own company well.



At the end of the day, these are not rules. For every example given above, I’m certain you can find a company that defied the typical trends. Will asking these questions guarantee you a risk-free transition into a startup opportunity? Absolutely not.

It’s impossible to know the reality of startup until you’ve graduated and begun working at one. The hope is that by utilizing this guide, Fordham students will be able to make the most informed decision possible and to effectively demonstrate their dedication to joining this ever-growing, ever-changing community.

Risk vs. Reward - Choosing Your Startup #3

For the next few weeks, we're going to be featuring a five part series by Sally Bolig, Head of Talent Acquisition at Yotpo. Stay tuned to learn more about how to decide if the startup life is for you!


Second-Tier
These second-tier questions are to pick and choose, and to include only when you feel that you would be uncomfortable proceeding forward without this knowledge.

There’s no guarantee that an interviewer will love these questions, but you aren’t crossing any lines by inquiring about these things.


1. Will you have to stay in the office until your boss leaves?
If so, this could get tricky very quickly. Of course, as a hard worker, there will be nights when you stay even later than your boss. But for it to be an expectation would be a huge red flag.


2. Is this an “8 hour a day” type of job or a “finish your work” type of job?
Only you can determine which of these you’re looking for but chances are that in startup, you’re looking at a “finish your work” type of day. For that reason, some days will be 8 hours long and others will be 12.


3. Is it okay to take vacation?
You should be able to take vacation. Typically companies offer between 10-18 accrued vacation days per year.


4. What startup shift could occur that would eliminate your position?
Things are ever-changing in startup and it’s important to be aware of whether management has given thought already to in what scenarios your position could be eliminated. And it’s good for you to understand the risk.

Additionally, management should be able to articulate to you at least one reason why. If they say there is no scenario in which this would occur, read that as a red flag.


5. Does there seem to exist a core “in-crowd” of employees #1-30? Or is the company adaptive and accommodating to newcomers?
There is no harm in the OGs (original gangstas) of a company being particularly close-knit. Look at what they built! But it’s important that they’re welcoming to new hires, and that initiatives are being made by the organization to help everyone feel welcomed and familiar.