Posts Tagged ‘startups’

Interview Questions to ask Startup Management

Posted in web 2.0 on February 1st, 2010 by Matthew – 1 Comment

I’ve been in startups since 2002. At the time of this writing, that gives me 7 years experience in startup life. I’m not sure if that means I have “a lot” of experience in startups. Probably not. But, I do have “some” experience in startups, and I’ve learned a few things the hard way. One of the things I’ve learned is how important it is to pick the “right” startup to join. In the past, this was not really a top priority for me – I was young(er) and more focused on the more typical aspects of a job offer – compensation, job function & title, and location. I fell for all the hype of working first for a DotCom and then a Web 2.0 startup. Now I’m old(er) and more picky. I don’t want just a job at a cool company, I want to find a place that I can believe in. Here are a few questions I’ve found myself asking the management at startup companies, when I’ve been interviewed by them. I pass them along to you in the hopes you’ll avoid some pitfalls. These questions mostly apply to a Venture-backed software company.

Management

  1. Who is the leader in this company? Ask this question of everyone you meet at the company. If the answer is different. There’s a problem. If nobody knows who the leader is, there’s a problem. If the answer involves more than one person, there’s a problem. If everyone agrees on who the leader is, ask yourself – Do I like and respect this person?
  2. How is the product engineering team given its priorities/workload? If there is no defined process, there is a problem.
  3. How much time does the CEO spend in the office? I’m not sure what to look for in an answer here. Some companies benefit from the CEO being there, supporting and rallying the troops. Some companies benefit from the CEO being elsewhere, closing new business. Find out what type of CEO he/she is, and then arrive at your own conclusion.
  4. How many members of the VP/Exec team vs. how many non-execs? It’s not uncommon in a startup for people to get a fancy title in lieu of cash. Over time, this could result in too many people with VP Level titles. If that problem is not rectified, the organization gets top heavy with too many chiefs, not enough indians. Nothing gets done.

Strategy

  1. What is your current business strategy? Understand that a strategy is just an educated guess. Don’t expect anyone to really knock your socks off with the perfect answer – they won’t. But, trust your gut here. Does it make sense to you? If the management refuse to answer, that probably means they don’t have one, or can’t agree to one.
  2. What are the corporate objectives for the next 12 months? This is a setup for the next question . . .
  3. What was your business strategy 12 months ago? If the objectives for next 12 months are completely out of left field when compared to the last 12 months, that’s a bad sign. If the objectives are all different, AND there’s a ton of VPs, you should walk out of the meeting.
  4. Describe the product roadmap? The phrasing of this question is somewhat important. Use the word “describe” so that they have leeway to answer with “non-existant,” if that’s the truthful case.

Customers

  1. Number of Customers? You might have taken an interview at this cool startup because you know they’re working with a handful huge, recognizable brand name customer. Don’t be taken in by that 1 or 2 names. Quantity is more important than quality.
  2. Customer industries? You’re looking for laser-focus here. If the customers are all over the map, that’s indicative of a lack of focus. Startups can not usually suffer from lack of focus.
  3. What is required to create a satisfied client? Don’t put too much stock on on the specifics of this answer. Instead, look for a simple, tight response. In some cases, you’ll be left wondering- “Do these people even know why their customers became their customers in the first place?”
  4. Who is responsible for generating new business? Employees at startups wear many hats. But, the function of acquiring customers and closing them is not one you want shared by technical folks.
  5. Who is responsible for maintaining the client relationship after the 1st sale? Again, you’re looking to make sure they’ve thought of this. You’ll be surprised at how many startups do not include client satisfaction as a core commandment – until it’s too late.

Company & Culture

  1. Mission Statement? Core Values? Positioning Statement? In their haste to “be successful,” startups often overlook the important foundational work required to make themselves successful. Any company that skips all of these steps is being sloppy and setting themselves up for failure. Don’t believe anyone who tells you they’ve purposefully skipped the step because “we’re a startup and startups don’t need those things.”
  2. How many employees and in how many in each location? The website might say they have offices in San Fran, Chicago, and Boston. How many “virtual sales offices” comprise this list?
  3. What is the turnover rate? I join startups to be part of something I can believe in for a long time. Make sure others agree with this company’s vision.
Board & Investors
  1. Number of people on the board? More than 4 to 6 and it’s trouble.
  2. Number of investors? More than 2 or 3 and it’s trouble. Also, be on the lookout for investor groups that are comprised of equal numbers of Angel and Institutional Investors. Angels and Institutional investors don’t often agree on basic terminology such as “successful exit.”
  3. Where are the founders? If the founders are completely gone from the company and not present on the Board, it probably means the original strategy of the company failed and the VCs kicked out the founders. What’s left is not the same company that started.
  4. What is the exit strategy? If the company is looking to be acquired within the near future, it will cause them to focus less on building a strong foundation for the future.

There’s no one single question here that should make or break your decision to join a startup company. By nature, a startup is filled with risk, uncertainty, and change. But, after you’ve found out the answers to all these questions, put together a scorecard. Trust your gut, and choose wisely.