So I interviewed with a couple young guys doing a startup here in Raleigh and I am really interested in joining them. However, I have some concerns that make me hesitant.

1. They do not have a functioning product. They are a subsidiary of a parent company who actually designs the product. They need to have a functioning product before they can seek seeder investing.
2. Salary. Or should I say lack thereof. There won't be any pay until the seeder funding is complete. They said it could be around 3 months, but who really knows. I don't mind living lowly for a while, but I owe a lot in student loans. I have to make something to pay them off. Also, I need to eat & have shelter.
3. Lack of experience. These guys are clearly ambitious and educated, but there is a disconnect between what they want and how they will get there. From my initial impressions, they seem to have the capacity to pull this off, but there is a steep learning curve ahead.
4. My role in the company isn't clear. By degree, I am a civil engineer. But they want me to do a variety of things (drafting, meeting suppliers, talking to structural engineers, potentially handling/designing electrical systems). Do I need to be concerned about this?
5. They are foreign nationals. Well, kinda not really. 1 is fully foreign and the other is half. I am worried that they don't fully understand the type of business environment that America offers. They did get their undergraduate business degrees in the US though.

Any experiences would be helpful. Advice is also good.

3/24/2011 10:02:11 PM

Quote :

"4. My role in the company isn't clear. By degree, I am a civil engineer. But they want me to do a variety of things (drafting, meeting suppliers, talking to structural engineers, potentially handling/designing electrical systems). Do I need to be concerned about this?"

Yes.

3/24/2011 10:22:29 PM

Can you elaborate?

3/24/2011 10:26:34 PM

You can interpret this in two ways:

1- Take a huge risk (by investing a shit ton of time) going in to business with people who aren't your friends. You're atleast not starting off with the #1 worst business idea.

2- Realize that they're just huge business promoters, there's probably a religious tie among them (that's where they get their pep from), have no idea what they're doing, and they're really just as unemployed as you are.

3/24/2011 10:42:05 PM

Are you being hired as an engineer? Are "drafting, meeting suppliers, talking to structural engineers, potentially handling/designing electrical systems" things that your education and experience qualify you to perform?

Do you have a PE license? Do you need one for the type of work you'd be doing?

3/24/2011 10:49:41 PM

the only way I would do something like this is if there was a possible huge payoff to offset all the huge risks...but I don't see any possible huge payoff for you anywhere. granted, if the company takes off you could rise very rapidly by virtue of having been there at its formation...but I think it more likely that even if the company prospers, you won't be much better off than all the other regular people working at regular jobs. the founders are the ones who stand to gain hugely. THEY are perhaps justified in taking the risk...you are not, imo.

3/24/2011 10:53:07 PM

From what it sounds like, I will be interacting with people about technical details of the product. That could be accreditation bodies, contractors, engineers or local officials. I wouldn't be stamping any documents, but I would be interpreting the technical details. Essentially, they want someone who knows a thing or two about structural/mechanical/electrical design to make educated judgments.

3/24/2011 10:57:08 PM

tell them you'll only take the work if they make you a shareholder in the new company. Otherwise, it sounds like you're about to get robbed of a bunch of time. In the meantime, apply cor a real job.

3/24/2011 11:46:37 PM

^yep. As long as you are getting ownership, not a problem. That's how startups work, either they pay you a real salary now, or they buy you into the company to get paid later.

3/25/2011 12:12:11 AM

The better question is ... What are THEY contributing to the company...

Its bad enough to have one business major college grad with NO EXPERIENCE coming up with a "great idea" ... but not actually knowing how to make the product themselves ... but yet 2 of them??

If you are going to be in charge of the actual product development, then you should be asking for 40% of the company (at least).

Anyone can think of a "new business opportunity" ... the difference will be in execution and the genius behind how the product is created/delivered.

Don't sell yourself short ... thats all I am trying to say. You need a CLEAR understanding of what THEY will do AND what YOU will do. Once that is defined, you can contractually arrange everything based on those points of contribution and "value to the company"

3/25/2011 9:19:51 AM

I agree with what others have said. In a situation like this if you are being asked to make sacrifices in pay and such to get things going the goal should be a larger payoff possibly down the road. If they cant pay you in salary then they need to pay you in part ownership of the company and then its up to you to decide if you feel its a sound idea. Consider it an investment on your part that could potentially fail and you get nothing.

3/25/2011 10:00:55 AM

always ask yourself "what do I stand to lose?" If you put in 3-6 months and don't get squat. Chalk it up to good experience, and make a bette decision next time. I like the ownership idea.

3/25/2011 12:06:01 PM