Questions are often asked to get the right perspective of something that is vaguely known. Startups are sometimes seen as a comfortable thing to do if it is viewed from the bird’s eye view. And certain questions may remove misconceptions that one has for a start-up company. If you are looking to start a business or work in a startup company. Some questions need to be asked so that misunderstandings and doubts will be cleared and it will help you to make a sound decision on whether entrepreneurship or working in a startup is for you. Here, let’s know some Questions to Ask a Startup Founder.
Some questions elevate many doubts. For one, starting a new company is not all rosy. It has its share of problems. So, it is up to you if you can handle that kind of stress or if you can work under someone who goes through various challenges and those challenges are not like established ones. Before you join one or make a decision to start one, it is good to have a handful of solid questions to ask before you take the big plunge. There are questions you can ask from an employee’s perspective or as someone who wants to start their own business.
Whether working for one or thinking of owning one, you need to ask some soul-searching questions which will make you think and let it sink deep into your soul to make the best decision there is for the benefit of all. Let us first understand what a startup company is?
A start-up company is built from the ground up. It is a sole idea and it may sometimes have sole ownership or have a group of owners. Startups can be family-owned or owned by an individual. It can also be owned by a group of entrepreneurs. Startups can also be funded by angel investors.
A start-up business can be of anything. The problem with start-ups is the vagueness it carries. A study shows that only 5percent of start-ups become successful. Therefore before venturing into one, you need to have to know the ins and outs of it.
There is a lot that goes into making a startup successful. With a whole lot of perseverance, you also need enough funds to keep up with the business until it starts generating profits of its own. A start-up looks fun on the inside but the things that go on the inside are not fancy at all. Sometimes, the founder or those closest to the founder end up working for free. The sacrifices that go into it, in the beginning, are something that everyone cannot bear to do.
Thus, asking the right questions and making yourself fully aware of the risk will help you take a practical approach and help you to decide if you can muster the courage to start one or work for one. The choice is yours to take.
These are questions to the founder of a start-up from the point of view of a partner or a co-founder
Questions to ask when a startup is yet to be launched.
- Why did you decide to start this business/company? What is your main motivation behind it?
- What is your signature line?
- Can you tell me why you think that it’s a great idea?
- Please elaborate on how you will meet the needs of the people through your service/product.
- Have you tested it before? How confident are you that this will work? Please explain with practical examples.
- Why do you think that opening such a service/product will solve a problem? Please elaborate and help me understand your concepts.
- How good are you in partnership? Have you been in such a relationship before?If yes, are you still in a partnership, or if not, could you tell me why?
- How do you handle stress? Have you faced failure in your other start-up ventures or is this the first time you are venturing out to start a business of your own?
- Who are your investors? What is your investment plan?
- Do you intend to pay yourself from the first month? If yes, how? If not, why?
- Will your co-founders get paid? If yes, will it be according to the market value? If not, how will they be compensated in the future?
- What are your plans for the company’s culture and values?
( Such a question about culture opens you up to decide if you could fit with their work style or not. Company culture also makes you or breaks you. This one is an important deciding factor before you join a company)
Values questions are equally important to know because if it doesn’t value what you value it will create friction and setbacks. It is always good to stay on the same page if you want to have a successful work relationship.
- What title will you give yourself and why?
(This opens up the prospect of knowing his qualifications, experiences, and expertise)
- While you are on this page, you may ask the founder of your title too.
- Questions to ask once the startup has been running for some time now but it is yet to be fully established.
Will you be working full-time or part-time? (Initially, some founders or co-founders work part-time due to various reasons, so it is good to know it from the start).
- In case of firing, who fires whom?
- Could you tell me how many employees you intend to hire and how many have been fired till now?
- What criteria do you look for while hiring employees?
- How do you decide the compensation and policies regarding salary and other perks?
- How do you calculate the budget when the funds are running low? Do you have any backup plans?
- How is the company planning to stay the course for another 5years?
- What extra measures do you take to make sure the company survives?
- What is the work timing here? Are there any policies yet on extra work timing and all the nitty-gritty details of the office work policies?
- Did anyone leave the company? If yes, may I know why?
- How would you describe yourself as a person?
- Do you like to change some part of the company in the future or which part of the company would you like to remain the same?
- Are you comfortable with accepting others’ opinions or do you want to have a complete say on certain things? If yes, may I know in which areas? (This question is crucial to ask to know if it consists of those areas which you can never compromise)
This is a crucial question to ask as maybe you may not agree with the control on some areas like finance or creativity part etc. Is it good to get first-hand information to avoid misunderstanding in the future?
- When you face failure what is the first thing you do?
- How many times have you failed? What have you learned from it, would you please elaborate on it?
Questions to ask yourself (founder) if you are planning to start a startup company.
- Are you ready to work for free for some years or get a salary lesser than your employees until you are stable enough to pay yourself?
- Are you ready to go the extra mile when others take a back seat?
- Will you expect less from people and more from yourself and be a self-motivator when others give up on you?
- Can you silence the naysayers and move on even if it’s just you and your vision? Are you mentally strong enough to do that?
(There will be a lot of those kinds of noises and you should be able to break those stereotypes if you want to be a successful entrepreneur)
- Are you ready to learn and learn from those around you or from those who have gone before you?
Humility is a huge factor in becoming a successful entrepreneur. A person who has a know-it attitude has high chances of failure as he/she will not sink its heels in the deep to learn all the tricks and tactics of the business.
- Can you develop innovative ways to raise funds? Are you able to convince others to invest in your ideas?
Convincing is an important factor to draw in the funds. Many people have good ideas but they are not able to have the power of convincing and thus lack to show the big picture that they have in their mind.
- Is there a strategy in place or in the process for mitigating different administrative or financial woes?
- Can you have calmness and focus on the vision when you are on the verge of failure.
- Are you practical enough to make a move when it seems like it needs some change in any area of the company?
- Will you be emotionally attached to your startup or take practical measures if it is showing signs of exit?
- If it needs an exit plan, what do you have in mind?
- Do you plan to sell it off with a high amount or intend to build a legacy?
- What does it feel like as an employee to work in a startup?
What is it like to work in a startup company?
First of all, working in a startup has its share of woes and perks. The perk is that it gives you an up-close picture of the whole dynamics of functioning a start-up. This causes you to have a practical insight into the workings of a new company. It is a good thing if you want to have first-hand experience about running a company and if you want to run one in the future.
- The cons or woes of working in a startup is that you may not have a full picture yet as it is in its nascent stage. You have to ask a lot of insightful questions to the hiring manager to get a slight idea of where it is headed to.
- But even after putting your best foot forward in asking the best questions you may ask, it is still in its development stage so you can’t exactly put a finger on it and be certain about some things, such as its success.
- Another thing is to work in a startup, you have to be highly motivated. You will need a lot of it. You may have to settle for less salary until the company picks up on its profits.
- When your friends and family are having personal time, you may have to work extra hours without compensation for many months or until the company comes in a pretty good position. That means you will have to sacrifice a little more than those who are already working in an established one.
- And after all the hard work and dedication put into it, the company may still fail and if it does like Facebook and Apple, you are set for life. So, working for a start-up is tough initially.
Questions to ask a startup hiring manager
- What is my job role and am I the first one in this role or there has been another one before me? If yes, why did that one go or be fired?
- How are you going to compensate me for all the sacrifices I make for the company at this stage? Is there a policy in the working?
- I want to know what the company believes in and strives to be 5years down the line?
- Do you have a plan B in case this does not work out, how do you plan to take care of its employees?
- Is the company thinking of growing for the job role I am being for?
This is a growth strategy for your job role question. If the company decides to let you stay in that role for three years down the line, this is a waste of your talent and time. So better ask this question before you waste precious time in such a startup company.
- Another question to ask is, what are the company policies on employee retention and promotion or firing?
- What is the company hiring capacity? Is there any limit in hiring?
- Do you plan to expand or open branches across the country or internationally?
( This answer will give a glimpse of their vision and give an idea about their long term goals)
- What do you look for in an employee to work in your company?
The answer will give you an idea of their workplace policies and you will get a fair idea of how deep they expect you to dig your heels with them. This question will determine whether you have to stick to your role or wear many hats.
Conclusion
The right answer leads you to determine what your future would look like and would give you an idea if you have what it takes for you to advance with the idea of starting a company or working with one. This question opens you up to the potential you may have or the lack of it. Do you have the right skills and good work ethics? Are you passionate enough to stick with it? Will you be able to fulfill your vision or your owner’s vision? Such questions will be at least answered to some extent if you ask these kinds of questions listed in the article. So whether you are planning to own a business or work in one, go ahead and ask those questions and get a little bit of insight into a founder’s mind.
