Assessing a Company: Questions you need to ask in an Interview

http://blog.interviewstreet.com/2011/12/assessing-a-company-questions-you-need-to-ask-in-an-interview/

153 43 15 years ago

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asanwal3• 15 years ago

This is a fantastic guide that I think anyone thinking of working at a startup should read. There is far too much hype, personality and gimmickry it seems around startup hiring much of the time.

We're interviewing lots of folks these days and here are some more questions I think candidates should ask or which we've been asked which I appreciate:

1. How many months (or years) of cash do you have in the bank?

The founder might not say the exact number of dollars, but they should be willing to give you a # of months/years left esp if they're not revenue generating and are reliant on other people's money (VCs, angels). If it's 3 or 6 months, I'd think twice as there are no guarantees of funding being raised and do you really want to be job-seeking in 3 or 6 months or get laid off cuz of the Last In, First Out principal? There are no guarantees of more money being raised. Plus they might be exaggerating about how much they actually have. If I were a candidate, I'd love to hear 2 years but 1 year at a minimum. 2 years only happens generally if the business is real (making revenues/profits)

Clarification: On the money in bank question, you're looking for real money in the bank now. Not what they expect based on their projections or if they land that big customer they are "on the verge of landing" or the "we have termsheets from investors and will be closing in the next few weeks" -- none of those are money, they are promises/hope. So perhaps the better way to ask this is "If you earned no more revenue or got more financing after today, how long will the money you have in the bank today last the company?" -- Also, this is a question you should only ask of a founder, CEO as they'll prob be in the best position to actually answer it.

2. What specific projects do you see me working on if I were to join?

This may in all likelihood change by the time you join, but they should have a clearly defined plan for the areas your talents and skills be used. This will help give you a sense for what you'll be doing as well and whether it's interesting. I also think if they articulate some nasty, unpleasant work you'll be doing, that is good as well. Jobs are rarely all rainbows and butterflies so someone who is going to be honest with you about the good, bad and ugly up front is probably better than someone trying to sugarcoat up front with all the amazing stuff you'll be doing every day to "change the world and make people's lives better."

My only comment on the post is the question about "What technologies do you want to be utilizing?"

Technology enables solutions to problems. So whether some company is adopting some new, shiny technology is less relevant than whether they're using technology in a way that is solving a real problem and ideally becoming a real, fast-growing business.

I think the better question is to somehow gauge their receptivity to being flexible about technology if there is a real benefit to doing so. Not sure the right question to test for "technology rigidity" but that is the question I'd ask if I were a candidate talking to us or any startup.

siavosh• 15 years ago

I think another great question is: Can you describe to me what my first day, week, month will look like? This helps to really crystalize what they see you doing and being responsible for from the get-go.

asanwal3• 15 years ago

Absolutely agree. Clarity of thought and a plan are key to look for as startups without a clear view on these things may be indicative of fuzziness on other important fronts, i.e., where is this company really going, how we are going to make money?

To this, I'd add another question if interviewing at a non-revenue generating startup -- "How will the company make money?" And you should assess how realistic this sounds. You don't need to be a VC here but it should pass your own innate b.s. filter.

But if they do answer, "We're going to have millions of users (one day in the future) and will monetize through advertising", my recommendation would be to run the other way (quickly).

jacques_chester9• 15 years ago

> On the money in bank question, you're looking for real money in the bank now.

Another way to put this: "can I see your current balance sheet and cashflow statement"?

Serves two purposes:

1. If they say yes, you get to see their actual assets and cash flow, unless they're flat out liars.

2. Whether they say yes or no, their degree of reluctance or acceptance is informative about managerial culture.

asanwal3• 15 years ago

Jacques - I'm all for candor in discussions we have with candidates but in my view, this would be overreaching. I doubt most companies would be willing to show this unless they're hiring someone at the C-level. Plus for VC-backed startups, I wonder if there are limitations on showing this kind of stuff (we're revenue-backed so I can't comment on that)

I think your point #2 is valid even if you ask my initial question about "real money in the bank". If they don't know how much burn they have left or can't answer immediately or are reluctant, that is still a problem.

tomblomfield• 15 years ago

Asking the question that bluntly is out of line, imho.

temphn2• 15 years ago

For one data point: as an employer, if someone asked me that in a job interview I'd think they were complete mercenaries and highly distrustful/cynical. Would smile, respond with something noncommittal about how the board won't let us share that kind of information, and cut short the interview as soon as possible.

Think about it from our perspective: part of the point of being a non-public company is that you can keep some things close to the vest, like profits and balance sheet. Perhaps 50% of the people we interview don't end up getting a position. What if you take that info and share it with competitors, or plaster it on TechCrunch?

This is particularly true if this was a follow up to a previous question (which is borderline) about how many months of cash were in the bank.

Should you judge the financial health of a company? Sure. Look them up on CrunchBase, observe the surroundings, do some research into market size yourself. But have some tact.

troels• 15 years ago

If you left them with an impression you don’t agree with, the fact of the matter is you did leave them with that impression so you simply need to figure out how to make the same mistakes next time round.

Or, you know, how to avoid them ;)

Good advice by the way. I have always made a point of asking this my self, and when I have been hiring, I would always try to answer as well and honest as possible, if candidates ask for it.

aherlambang• 15 years ago

i completely agree with the fact that you should never take a job just solely because of the money...sometimes its hard because if you share your pay with other, they would say, but why?? only you yourself can feel good about it

nigelsampson• 15 years ago

I've found a lot of companies don't like giving feedback of negative outcomes for fear of opening themselves up to some sort of liability around discrimination.

Realistically it shouldn't be a problem if they handled the interview correctly, but some prefer not to take the risk.

jacques_chester9• 15 years ago

> I've found a lot of companies don't like giving feedback of negative outcomes for fear of opening themselves up to some sort of liability around discrimination.

In itself, this is a useful indicator of corporate culture.

Peroni3• 15 years ago

Very valid point. Whilst it's not necessarily indicative of a 'bad' company as such, anyone who refuses feedback as a matter of course is generally a company driven by compliance. not always a good thing.

dazbradbury• 15 years ago

In the UK at least, a company is required by law to provide you with feedback. I would definitely agree with the article here, exercise that right, and gain some insight into how you've been perceived.

Clearly, whether this feedback is useful or not totally depends on the employer, but more often that not, it will be helpful.

frobozz• 15 years ago

I would have thought the opposite to be true.

jacques_chester9• 15 years ago

Interviewers do "leak" information to interviewees. I once turned down a lucrative job offer because, during the interview, the interviewer had told me "hilarious" anecdotes about the CEO changing his mind every few days.

Here's a more technically-slanted list of questions I've used during interviews: http://www.reddit.com/r/programming/comments/apae9/interview...

codenerdz2• 15 years ago

I would love to be able to find the following information without seeming to be afraid of working hard:

"How often do you expect your employees to work extreme hours in order to be competitive in your company?"

If the culture of the company supports 60-80 hour weeks, it may not be apparent in a job interview... and even if it doesn't, asking this question incorrectly may paint you lazy or unwilling to put in time if(hopefully infrequently) necessary

Tichy• 15 years ago

If you are unwilling to work 60-80 hour work weeks, what is the point in lying about it? Would you make an exception for some companies?

codenerdz2• 15 years ago

There is a difference between working 60-80 hour weeks all the time vs putting in a week of crunch time that happens rarely. Latter is oftentimes inevitable, whereas the former is a sign of poor time management IMHO.

There was nothing in my question about lying, It just seems that is very tough to emphasise your dislike of constant 60-80hr weeks and still be able to convey the fact that you wont shy away from a late night work when absolutely necessary.

SatvikBeri• 15 years ago

You pretty much have to ask this of employees who would be at your level, not the employers. Even honest bosses can have a bit of a misconception as to how much their reports work, or they'll come up with a quick estimate that's based off of nothing.

jroseattle• 15 years ago

This is a really good starting point. Questions can obviously go deeper, relative to the particular industry, to learn more about a company. The main point is not only the information you get, but gauging responses to those questions.

If you're being interviewed, turn yourself into the interviewer at this stage. Be prepared -- take notes, bring materials from the website or other content to reference during the conversation, and have your questions planned out thoughtfully ahead of time.

Generally, a recruiter is not the best person to ask questions, though. Try to ask questions to the hiring manager. Strive to learn the organizational/corporate pain points. Ask questions to gain information, but also to get beyond understanding "culture" to understanding biases and preferences. Rarely do interviewers make that clear, in spite of the intentions of their communication.

Last, one general comment about questions: if they can't be answered to your satisfaction, mark it as a red flag. If you, the candidate, can think about something in the short term and a business that's focused on that thing can't or won't respond in a way that's clear, that should be a clear indication of a problem.

polymatter• 15 years ago

Research is something everyone stresses, but it is something I struggle with and I would really like to see more advice on it. Advice on parsing the data I get rather than more data.

Now I've gotten into the habit of only looking at directors statements on their annual reports when I need to research a company. I get so little from the rest of their website, I can spend hours and not understand anything more than the names of their products/services. I have the distinct impression that coding teaches me to only believe what is stated, whereas parsing marketing text is all about reading the lines, which I am terrible at.

lemming• 15 years ago

In addition to the excellent questions here about revenue and runway, if equity is a significant part of your comp (read: if you could make more money elsewhere and you're not taking the pay hit because it's the job of your dreams) there are more things you need to know. I'd want to know total investment, the liquidation preference and if the preferred stock is participating. This will give you a good idea of the exit required for your stock to actually be worth anything. Knowing the makeup of the board is useful too, i.e. how many are VCs compared to common holders.

johnobrien1022• 15 years ago

These might be questions to ask after you get the offer, but IMHO you'll likely decrease your chances of getting the job if you ask them early in the interview process.

Peroni3• 15 years ago

I couldn't disagree more (obviously).

There is nothing in those questions that could lead an employer to think that you wouldn't be suitable. They are intelligent, natural questions and the answers are very relevant to someone applying for a job.

Once an offer has been made, the opportunity to ask detailed questions is gone. If someone posed these questions to me after the offer I'd simply think why didn't they ask during the interview if it was important.

johnobrien1022• 15 years ago

Well perhaps you are right.

Assessing a Company: Questions you need to ask in an Interview

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