Change is always a risk – whether it’s your house, city or career. There will always be a degree of excitement and fear. Not knowing what lays ahead isn’t necessarily a bad thing, particularly when you have considered all options carefully. The same applies to joining a start-up.

The idea of quitting a safe job to join a start-up would have been seen as almost crazy a few decades ago. Then along came Google, Amazon, Facebook, Uber… the list goes on. The success of so many big-name start-ups highlighted the benefits of ‘getting in early’ making the risks seem worth it when compared to the potential gains.

Choosing a start-up over the more traditional corporate workplace is a huge change, everything from the structure to the culture to what may be expected of you may surprise you. We have put together some thinking points to help make the decision.

#1. Start with research

If you take any new job, the first thing you do is jump online and find out as much as you can. It’s no different for a start-up. There may not be as much information as an older company but you can still find out more about the founders and leaders, their previous experience and their track record (or otherwise) of success.

#2. Get the most out of the interviews

During your interviews, you should have a list of questions that you couldn’t find the answers to online. There are 3 key questions, however, that will help you understand just how much risk is involved:

  • Do the founders have the skill and knowledge for the start-up?
  • Is there an existing customer base for the product?
  • How is the start-up being funded and is the funding sufficient?

#3. Understand start-up financials

It’s quite likely that the start-up hasn’t generated any revenue yet and this shouldn’t needlessly be a cause for concern. Still, you need to understand the numbers beyond the first round of funding. For growth, the start-up might be relying on a second round of funding and this will only occur if investors are confident in indicators of success such as the burn rate, cost of client acquisition, and the average revenue per user. [Learn more about start-up funding here]

#4. Spend time with the team

Start-up dynamics are not always the same as other work environments. There is a special bond, a shared passion and drive in the small team that kicks off the venture.

There are some things that you can only discover by spending time with people, and that is what is known in recruitment as ‘the fit’. Culture and behavioural fit are essential if you’re going to thrive as part of the start-up. Getting to know the other key players will provide an insight into their ethics, beliefs and personalities, which will help you understand if you belong in such an environment.

#5. Are you ready to step out of the 9-5 mentality?

It will be an exhilarating and exhausting ride. Both entry-level positions and senior roles will likely require long hours. It might be due to the amount of work that needs to be done or just the passion of the project causing you all to burn the midnight oil. Your achievements should make the irregular hours worth it in the longer run but you will need to ensure your time management skills – and stamina – are up to it in order to avoid burn out.

#6. And can you cope with chaos?

It’s not permanent chaos but it can be a shock if your previous employment was highly organized with little room for flexibility. By definition, start-ups haven’t had time to develop the same structure as an established company, which some people can find a challenge. That being said, order and structure will fall into place with time, effort and experience.

#7. Know what you want to get out of it

It’s a good idea to make sure your goals are not centred only around money but also about personal growth and your career development.

Without wanting to dash your hopes, if you have your heart set on earning your first million, you might want to rethink your options. It’s not that it won’t happen; again, look at the net worth of the founders of Google, Facebook and Amazon. But there are no guarantees. In a start-up, especially at executive level, you’re likely to get paid below your market rate in cash terms and instead receive long-term incentives (an equity stake) that might change your life forever if things take off.

#8. Get second opinions

Once you feel that you have all or most of the answers to these questions, speak to those in your life who can give you a valuable second opinion. This may not be someone with experience in start-ups. It could be someone with a good head for business or a mentor. It’s also good to go through your alternatives with others as it can help crystallise your own thoughts.

In summarising, joining a start-up will definitely be exciting and inspiring, and it’s easy to get swept up with all the excitement and make a decision too quickly. There will always be some risk when joining a start-up but it could also be a life-changing opportunity.

One of the best ways to reduce the risk is to carry out thorough research prior to meeting with its leaders and founders. Don’t be scared to ask necessary difficult questions so that you’re completely informed. Take the advice of those around you and, if your instincts tell you that something isn’t right, don’t be disappointed if you give a particular venture a miss —there will be another start-up around the corner.

Read also: Bermuda Start-Ups | The ‘Class of 2020’

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