Choosing The Right Start-Up For You

By Jim Lambert

I love working in start-ups. I love the thrill of building something big from scratch, wearing multiple hats, working with amazing teams and the camaraderie, and charging ahead toward an emotional vision on faith and passion.

That said, with the numerous challenges facing small to medium size businesses today, compounded by the rate of business failures, how does someone who thrives on the excitement and opportunities of start-ups manage the risks and pick the right one?

Having now worked in six start-ups, as well as numerous large public companies, I have developed a version of a scorecard to help me evaluate career opportunities and decide which ones are a fit for me. And of course all of this has to take into account the personal variables you may have (e.g., desired role, work experience, non-work obligations).

It looks like this:

• LEADERSHIP AND MANAGEMENT TEAM – Leaderships skills, experience and past success in building a company, and how well they work as a team.
• VISION AND ABILITY TO EXECUTE – Clear game changing vision, the ability to translate to executable actions, and sufficient history (late-stage vs early-stage) of consistent achievement of quarterly/annual goals.
• CONDITION AND RECEPTIVENESS OF THE SPECIFIC MARKET – A vision that addresses a strong demand in the market and execution that can overcome any existing barriers (e.g., economy, competition).
• FUNDING AND FINANCIAL VIABILITY – Controlled funding with the right investors, including the founders, and realistic ongoing financial requirements. A general financial management tone and practices (e.g., conservative, controlled spend, early profitability goal) that is proper for the business model and climate.
• MATURITY OF OFFERINGS – Published product plan and roadmap aligned with the vision. Clearly defined offerings that are commercially available, versus still in the concept/development stage.
• CUSTOMERS – Sufficient number of customers to validate condition of offerings, use of entire offering/suite, and commitment to customer value and satisfaction. Happy and passionate customers willing to recommend to others.
• THINK BIG / START SMALL – Clear definition of their vision and big picture, and have a defined and realistic plan to grow to that goal. Ongoing decisions and changes are aligned with the big picture.
• CULTURE– Culture is important to them and they are able to clearly define it (or what they want it to be). It is real, confirmed by the employees, and are there numerous operating examples of its existence. Customers see it and feel its positive effects.
• COMMUNICATION – Communication is a strong skill and belief of leadership. Regular and predictable companywide communication, with encouraged employee involvement and interaction. Infrastructure in place for enterprise-wide collaborative dialog supporting growth and rapid resolution.

In addition to going through a discovery process using this scorecard, I then wrap it up with a rating of each category on a scale of 1-10.

You may have additional criteria you would add to your scorecard, such as employee development and benefits, but hopefully this will help you in getting started in your evaluation. And if you thrive on detail, you may also add a pro/con list for each category.

By the way, I used this scorecard and method before choosing to join DayNine Consulting.