Working in a startup is a great experience, but it’s not always easy to find the right one. Here are some tips to help you evaluate a startup before joining:
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Deep Understanding of the Founding Team: You can never know too much about the founding team. Are they responsive? Can they accurately judge people? Are they humble enough to listen to others’ advice? It is recommended to directly participate in their team meetings, observe their working style, and after a few times, you can judge whether the team is reliable. Additionally, understand their background and experience, see if they have a history of success, and how they handle failures and challenges.
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Clarifying Responsibilities and Authority: Figure out who is in charge. If you are put in charge of a certain business, can they fully trust you and delegate authority to you? What is the reporting process? Who sets the roadmap? Who can make changes? Ensure you have enough resources and support to complete tasks, and that your opinions and decisions will be respected and considered.
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Clarity of the Business Model: The business model must be clear. Is there a formal business plan (I’m not talking about PowerPoint)? Is there a detailed and clear description of the core idea? Does everyone in the team understand our idea and can participate in the discussion, or are they just following orders? Ensure every team member understands the company’s vision and goals, and can contribute their efforts towards them.
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Honest Communication: Is there honesty? Will they inform members of the current company situation? If there are changes in investors/external environment, can they quickly synchronize with all members? If the founder holds back and finally releases a big move, it could be a disaster. Transparent communication builds trust, ensuring team members can unite when facing challenges.
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Incentive Plans: Is there a clear incentive plan and timeline? What is negotiable? The incentive plan should include both short-term and long-term reward mechanisms, ensuring team members are motivated to achieve the company’s goals. At the same time, the incentive plan should be fair and transparent, ensuring everyone can see how their efforts translate into actual rewards.