Comments on: What to Expect When Working With a Startup

By: Subhasish Ghosh

Subhasish Ghosh — Tue, 29 Nov 2011 17:08:47 +0000

What to Expect When Working With a Startup http://t.co/i1dkqDmC

By: The Zaq Stavano Blog » Blog Archive » links for 2009-11-13

The Zaq Stavano Blog » Blog Archive » links for 2009-11-13 — Sat, 21 Nov 2009 23:03:03 +0000

[...] What to Expect When Working With a Startup (tags: business customer resource self) [...]

By: andrewnim

andrewnim — Tue, 10 Nov 2009 04:16:08 +0000

I have worked with a few start ups now, I always say never again and then go right back for more. Its intense, exiting and sometimes depressing. Its always important to become part of the team and remember that you may be the most experienced one there. Treat it as another gig, be careful with promises of “options”. If you think it has what it takes and they give you the paperwork, get it lawyer checked before you do any pro bono work.

By: Ron Graham

Ron Graham — Sat, 07 Nov 2009 15:04:31 +0000

I’ve worked with a dozen start-ups over the last several years. So I will throw in on what is a decent article that passes over some important points.

First of all, I’m not sure where you get the idea that the term “start-up” is “usually associated with tech companies,” but I’ll tell you that simply isn’t true. Out of those I’ve been associated with, ONE has been about technology. And it’s NOT computer or Internet technology, either.

Second, they aren’t all headed on a path that leads inexorably to an IPO. Some don’t WANT their companies to be publicly owned; you correctly indicate that they come with a family culture, and some would like to keep that. We can of course still earn a piece of the action, but that has a different meaning.

Finally, there are ways to ensure one is paid fairly that are not mentioned, including barter and delayed payments., :-)

By: wrdforwrd

wrdforwrd — Fri, 06 Nov 2009 18:15:10 +0000

I’ve been working with a startup company in the renewable energy field on and off for several months. It’s a very exciting time for this company and its potential for success and growth is fantastic, once it begins operations. Right now however all of my work is pro bono as this company awaits funding and plant approvals. Luckily i’m able to scrape by with other freelance gigs while waiting for the company to takeoff.
Some lessons i’ve taken away from this experience:
- Study the startup’s business plan carefully before agreeing to work on a pro bono basis. This will indicate whether the risk is worth the potential future reward.
- Agree upfront on a payment schedule and keep careful track of the hours spent on various projects.
- If possible arrange for stock shares keyed to the total number of pro bono hours (and the per hour rate) devoted to the project. This could lead to a very big payday down the road if the company succeeds and eventually goes public. As a very basic example, say you’ve put in 100 hours for a startup at $50.00/hr; the company pays you at some point for those hours of course and also issues 5,000 shares of stock in the company worth $1 a share. If the eventual IPO hits $25 a share, well do the math — a very decent return on the time investment.
Startups are high risk,but potentially very high reward if you’re patient.