Working For StartUps

[Zylon]

I worked for one startup while perm and greatly enjoyed it - would certainly work for startups again. The biggest upside is also what draws many people to contracting - a lack of politics. While I found the skillmix to be similar to large organisations (i.e. same share of great, decent and mediocre individuals), the attitude was genuinely collaborative and almost everybody was bought in to what the company did - something I never experienced in large places.

The second major upside is simply the speed with which things get done which was very refreshing.

The areas some may see as 'downsides' are that you'll have a lot of accountability with nobody more experienced to draw on or learn from in many cases, i.e. you need significant initiative and confidence. But again somebody who sees this as a negative probably wouldn't be in contracting in the first place.

I was concerned about financial risk initially and addressed this by researching what I could extensively up-front, and asking questions about growth and finances in the interview - if they're offended by this you probably shouldn't work there. If the startup is in very early stages I would second the suggestion of asking for weekly pay, and I would also try to get a feel for the background of the management to satisfy yourself they're competent.

Shares are common for a small handful of perm senior management, with long vesting periods, but if they offered that to a contractor I'd be baffled and probably give it a miss! Nobody would give away shares so easily for something they actually believed in.

[ratewhore]

I left contracting to join a startup and I'm on my 2nd, loving the work life balance and can't see me working any other way now.

Having said that, there are startups and startups. I look at US based VC funded companies so they are relatively mature but far from exit. In fact, they've all been post B round and looking to build an EMEA team.

Lots of hassle, lots of fun and variety, t&e as soon as i walk out of my front door and now probably not that far off my earnings from contracting taking everything into account.

So its not all negative, you just have to pick the right company. If the startup is very very early stage, then I agree it carries higher risk.

[billybiro]

FTFY

Would next to zero be a surprise?

It would surprise me about as much as learning that night follows day.

[northernladuk]

I'd be very interested to know how many contractors have demanded this and had it agreed by the client/agent and got paid as agreed

FTFY

Would next to zero be a surprise?

[billybiro]

do what other companies do in business when there is a high risk for not getting paid, ask for part payment upfront.

I'd be very interested to know how many contractors have demanded this and had it agreed by the client/agent.

[uk contractor]

Insist on weekly pay if your contracting otherwise avoid unless you can afford to lose some monthly pay & or go a few months deferring your salary to help with their cash flow & balance sheet!

[vwdan]

Small, established, companies can be a lot of fun to work for.

A start up is like a one night stand in Ibiza - it's got the potential to be fun, but with a lot of risk.

[VectraMan]

I worked for a startup. Really interesting project, good small team of people, mostly contractors, and the guy in charge seemed to have real vision and said he had investors lined up. Started off WFH whilst he sorted out an office, which was fine, and my invoice for the first half-month was paid next day.

Then in the second month... some people need to purchase equipment, or a licence which he'd said was all fine but wasn't so forthcoming with the money and then started to be hard to get hold of. Then after having heard nothing for a while it all unravelled in no time. I invoiced for the month, but never received any money despite getting a CCJ. And then we found out (and this is an important lesson) that the guy in charge was disqualified from being a director.

Oh well.

I've mostly worked for small companies and prefer it that way, but at the end of the day money talks.

[Eirikur]

Ask for a credit report from a credit rating agency like Dun & Bradstreet and ask the client for insight in their finances. The latter might be difficult, otherwise do what other companies do in business when there is a high risk for not getting paid, ask for part payment upfront.
But general advise is walk away from any start up and never ever work for one if friends or family are involved

[VillageContractor]

I enjoyed working at a startup, but then I was young and a perm. Always wanted to go back at some point

Probably doesn't help you though

BTW I got made redundant from there after 10 months - that piece of information may be useful.

Got a nice payout though

[northernladuk]

What's the current figure of startups that fail? 90%? I wonder how many of the 10% survive by not paying suppliers etc.

I remember at least two posts where the contractor took share options and rather predictably neither got a penny.

[VillageContractor]

I enjoyed working at a startup, but then I was young and a perm. Always wanted to go back at some point

Probably doesn't help you though

[Pip in a Poke]

EDIT: that doesn't really answer the questions in your post though, apologies

No, but it adds another dimension to consider.

[jmo21]

My tuppence....

I had an interview lined up with a start up in December, but ended up pulling out as I just couldn't shake a bad feeling about them.

Not them specifically, more that they were a start up, they were so small, and to be frank, I'm nervous about the potential for them to fail and owe me money.

Despite real no evidence of that other than low numbers for their first few years on Company Check, I just felt it wasn't worth the risk.
They had unsuccessfully trying to hire a permie, so their expectations would likely have been for me to tide them over for a bit (v short contract, bad) or persuade me to go permie (also bad).

If you are going into one as a permie, with stock options, in an exciting field you are interested in, then I can see why people might be happy joining a start up.

EDIT: that doesn't really answer the questions in your post though, apologies

[Pip in a Poke]

Just wondering what people's experiences are of startups & their relationships with them.

I've heard some bad stories about how arrogant some of these companies can be and was wondering how much of it is justified.

I guess the name "start up" should tell you all you need to know. They're in the early stages of business & as such will be paying very close attention to how their money is spent. This, I guess, often translates into excessive micro management and control.

Fair enough but some of these places really take themselves way to serious & this affects the culture.

I've been to a couple of places where it's been like being a member of a cult!

A colleague of mine was telling me how, during his first week at a gig in Bristol, he'd been shown a website and he joked that they'd obviously seen his own ltd co. website as the designs were so similar.

That was the seed for his own downfall unfortunately & he was gone 2 weeks later. Through no fault of his own but just not the right fit for the culture.

This leads me to think that maybe it's best to target big, established companies when choosing a client. Any one else see any merit in this? Are you wary of startups?