I had the privilege of joining a unicorn startup that was eventually acquired by a multinational company. Many people, including myself, have been surprised by the professional experience you can gain from startups as a mid-twenties professional. While luck played a significant role in my positive experience, I also spent considerable time evaluating whether the role was the best fit for my career.
In a previous article, we explored why a startup experience is a must for every young professional (Startup Experience: A Must for Every Young Professional), especially if your university in undergrad placed a spotlight on finance and consulting.
In this article, we will explore six key factors that you should consider in choosing a specific startup opportunity to accelerate your professional career. I hope that this can help you take a leap forward and explore a startup opportunity for yourself.
1. Identify the areas that you are passionate about
Consulting provided me with exposure to various industries, but I realized I wanted to delve deeper into the world of transportation. Consequently, I concentrated my search specifically on that sector.
It’s crucial to join a startup that aligns with your values and career goals. Make sure the startup’s mission and vision resonate with what you believe to be important. Additionally, evaluate whether the company’s vision is sustainable and has the potential for long-term success.
2. Find the right-sized startup
When choosing a startup to join, it’s essential to find one that aligns with your preferences and career goals. Here’s a breakdown of the different stages and what they offer:
- Pre-Seed, Seed or Series A / B Startups: If you prefer working closely with a small team and taking on significant responsibilities without much support, an early-stage startup might be the right fit for you. This stage offers a hands-on experience where you “roll up your sleeves” and figure out everything from scratch. The growth potential is immense, and you’ll have the opportunity to build many aspects of the business from the ground up.
- Series D / E / F Startups: On the other hand, if you’re looking for a relatively more mature environment with still plenty of growth opportunities, consider a Series D, E or F startup. These startups have usually been in operation for around five years, have substantial funding, and have products that have achieved product-market fit. While many leadership positions may be occupied by early joiners, you’ll benefit from mentorship from experienced teammates and senior leaders. At this stage, the startup is likely on the path to an acquisition or IPO, potentially setting you up for a significant financial payout from such an event.
Early-stage startups offer higher risk and potential reward, while later-stage startups provide more stability and structured growth opportunities. Choose the stage that best matches your career aspirations and risk tolerance.
3. Identify the team and leadership of the startup
Research the backgrounds of the founders and key executives. Their experience and track record can be strong indicators of the startup’s potential for success. Additionally, assess the company culture to ensure it aligns with your working style and personality. This evaluation is crucial for finding a work environment where you can thrive and contribute effectively.
4. Focus on the impact you can make
Clearly understand your role and responsibilities, and ensure they align with your career goals. Additionally, evaluate the opportunities for professional development and career advancement within the company to ensure it supports your long-term growth.
5. Determine the compensation package
Salary is an important factor, especially since many startups allocate a significant portion of total compensation to company equity, in addition to a fixed base salary and bonus.
Evaluate the entire compensation package, including salary, health benefits, and other perks. Understand the equity offering and its potential impact on your financial future if the company succeeds.
6. Future potential of the startup
When evaluating a startup, consider the underlying market growth and choose an industry with strong potential and positive prospects. Understand the competitive landscape and assess the startup’s unique value proposition.
From a product perspective, ensure the startup’s product or service is innovative and meets a significant market need. Evaluate the technology behind the product to confirm its viability and scalability.
Additionally, investigate the startup’s funding rounds and financial health. This will help you gauge whether they have the resources to achieve their goals and determine their financial runway, which indicates how much time they need to reach their next milestone.
In conclusion
Choosing the right startup to join requires careful consideration of various factors to ensure it aligns with your career goals, values, and risk tolerance.
By thoroughly researching and evaluating these aspects, you can make an informed decision that positions you for success and satisfaction in your new role.
Jeff Zhang currently serves as a Consultant at McKinsey, specializing in private equity, transportation, technology, and sustainability sectors. Before this role, he spearheaded the creation of an innovative final-mile logistics product at a startup, later acquired by Shopify. His background includes significant experience in consulting, logistics and successful applications to global MBA programs.
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