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How to Evaluate a Startup Job Offer: 14 Awesome Tips


All set to join work, but many youngsters are still totally clueless on how to evaluate a start-up job offer. Smaller start up companies often has no definite role by itself for the candidate to assume and normally, may not have any specific timing, as such.

A person looking to join the start up needs to be aware of the circumstances, arriving at a decision on whether or not to join the company, based on many factors like the job opening, the salary package offered as well as the possibility that the business could fail.

evaluate startup job offerTips to Evaluate a Startup Job Offer:

1. Understand about start up companies:

One thing you need to understand as you decide on how to evaluate a start-up job offer, is that there is lot of risk involved when you work in startups. At the same time, the job responsibility of an employee could keep on changing.

An employee very rarely has a fixed role to assume within the company. Despite all this, career opportunity is more often than not first-rate within start-ups, allowing for the employee to grow more.

Try to come to terms with the mission of the company. See if one can be with the company for about five years. Be on the lookout for small start up companies, where one can learn better as well as grow from within the company.

2. Your role at the start up:

Know how to evaluate a start up job offer. See the responsibilities or role that an employee needs to assume, while at work with a start up company. Examine the expectations as well as the short term or long term goals of the employee at the start up company.

One should be able to get along with the team members, as they would have to work together.

Finally, the employee needs to make the decision based on the requirements and expectations. It pays to have an understanding of the company’s position as well as its future plans for the coming ten to twelve years.

3. Assessing performance:

Most of the start ups may leave off reviewing its employees, because they are way too busy. One other reason could be there are so many modifications happening at start up companies. It would be downright impossible to get worthwhile results from three or six months reviews.

4. Who is the boss:

Many are of the opinion that one needs to know who is the manager or immediate boss is at work, if one has to evaluate a start up job offer. If one can get along easily with the boss then consider joining with the company.

Start working for efficient and well known manager, as it definitely will be in your favour. One might end up growing more in work. It also helps to build the career of the employee with the start up company.

Know that if the popularity of the employer has earned enough support from the stock holders, then one can expect to learn from their experience at the start up company.

5. Financial aspect of a start-up:

Try to get a picture of the financial strength of the company. Most of the time, the company may try to give a positive spin, despite the issues. Keep track of the revenue numbers as well as of the other key metrics.

Keep track of the recent, current and near term revenues of the company. Before committing to equity shares offered by the company, have a proper understanding of how it works. All these factors, sure does come to play in your decision on how to evaluate a start-up job offer.

6. Startup salaries:

Know how to evaluate a start-up job offer. Begin with the salary to be had. Salary options offered by a start-up, even at its beginning stage should be in league with the other companies. Very often than not, small start-ups may offer smaller salaries for the possibility of a huge recompense at a later date.

However, considering  the family that one needs to support, the present salary compensation becomes more vital than the long term compensation. The success of the venture is also based on its ability to pay competitive rates as salary.

In the meanwhile, one can understand that the job position and experience all come into play while determining the salary package.

7. Get offer in written:

Before committing to any opportunity with a small start- up company, please understand on how to evaluate a start-up job offer.

Make sure that the offer is given to you in written format, so as to not have any confusion with regard to it, at a later stage. It is always best to come to a decision, after thorough negotiations, prior to committing to the offer.

8. Understand the shares:

In an attempt to evaluate a start-up job offer, go on to have a look at the number of the outstanding shares. At first, ask for the amount of outstanding shares, from which you can calculate the percentage of the company to be owned by the employee.

9. Track record of management team:

In the process of negotiating a job offer, applicants should come to be aware of the track record of supervision team and the investors. Have a thorough knowledge of the products and services of the company.

Go on to be aware of the sector and see what competition looks like. Start ups normally need added dedication and other opportunities

10. Equity:

While trying to decide on how to evaluate a startup job offer, it becomes quite difficult to estimate the future value of the startup equity, which is reliant on the skill of the management to sell the company to investors and public. Take a look at growth projection, the revenue estimate as well as the profitability.

11. Risks in Start-up companies:

When one decides to work for start-up companies, there are some things to consider. The risk involved is great for an employee, so much more than that of an investor. At the same time, if the venture is a success then the remuneration earned by the employee is only half of what the investors receive.

It definitely takes up lots of time and energy. In the meantime, the ability to execute and thrive at a start-up, helps the applicants to be more profitable. Employees, as well work to assume varied roles.

The employees can also work according to flexible timing within the start-up company. Working for a startup company, the employee has the ability to come up with creative solutions, even as the companies provide more growth potential for the employees.

12. How to create impression:

Have a look at on how to evaluate a start-up job offer. Work hard and diligently at the start-up company, always on the ready to do whatever job is required.

Try and contribute to its growth and also come up with some real innovative ideas, totally impressing the boss/supervisor.

Pros and Cons of Working in a Startup: Advantages of Working in a Startup Disadvantages of Working in a Startup
1 Earn equity compensation and added perks Get lesser salary than other companies
2 Better salary, profit and bonus as company grows No definite role or job description
3 Get more responsibilities Work for extended hours
4 Learn the job better Mostly on your own to learn the job
5 Know the significance of hard work More work pressure
6 Better recognition for job well done No training is provided
7 Exposure to diverse opportunities Lack of employee perks and benefits
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Benefits of Start-up Company:

Jobs in startups offer this following benefits.

  • Earn equity compensation as well as added perks
  • Earn better salary, profit sharing and bonus as the company grows
  • Get more responsibilities
  • Learn the job better
  • Know the significance of hard work
  • Better recognition for job well done
  • Exposure to diverse opportunities

Disadvantages of a Start-up:

Working at a startup has the following disadvantages,

  • Get lesser salary than other companies
  • No definite role or job description
  • Work for extended hours
  • Mostly on your own to learn the job
  • More work pressure
  • No training is provided
  • Lack of employee perks and benefits

Evaluating the Job offers:

Prior to making a decision to join the company, one needs to address certain issues of the job offer.

How does the applicant find the company as well as the job?

What is the opinion?

The applicant should also analyze the background of the employers at the start up.

One should also have an idea of what one would earn there. Finally, do research on all aspects of startup company, assessing its impact on one’s life, be it financial or professional, before coming to a decision.