Recently been approached about joining a startup agency. Never been in this situation before. Any advice on questions I should ask, red flags I should look for, etc.?

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One thing - sometimes they will try to offer you compensation in equity. That’s fine, but assume there might never be any equity when you negotiate your package.

likesmart

This ☝️

likesmart

Life’s too short for regrets but it’s also too short for mistakes. You need to understand the risk involved and what the expectations are to determine if it’s the right time for you. Long crazy hours, high highs, low lows. It can be very exciting and it can suck. At the same time. While you need to ask them questions about funding, opportunity, value prop etc, you also need to ask yourself if this is what you need now. If it is, best of luck! If not, don’t worry. There will be something else

likesmarthelpful

SVP 1 sees it clearly. These are absolutely the realities and issues you need to work through before making the jump.

likesmart

Also be prepared to do things outside of your job description on a regular basis. You all sink or swim together! I love it but it’s not for everyone.

likesmart

I did that and the smartest thing I did was negotiate a severance package because they went under in 9 months. Luckily I got the package, but there were times when we weren't sure if we were going to make payroll. Buckle.up

likesmart

This is real. Very real. Look at the AAF - and they thought they had it figured out.

smart

Go for it! I was at a big agency for years when a friend made the same offer. It was a great experience (that is, before it went out of business a year later...). And while it didn’t work out, I made some great friends, won some awards and have been freelancing (earning 25% more) for the 6 years since. You should do it. If it doesn’t work out, you find a staff job. No biggie! Life’s too short for regrets.

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Make sure to ask about benefits and how much they contribute to them — the last start up I worked in was very low.
Agreed with MD above, making payroll is real

likesmarthelpful

Have a smart lawyer going in

likehelpful

Thanks everyone for your thoughts and suggestions. Much appreciated!

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I did exactly this; from one of the largest to a total startup. Everything above is completely accurate. I’d add - what are the values and beliefs of the founders; why did they start it? For example, If they were pissed about not making enough money at their old agency, you can imagine how they view anything related to money (raises, hiring, bonus). If they think strategy is not important to creative, you can see how they’ll act... and so on.. values set the tone for a lot of behavior .

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Also consider what else is going on in your life. College tuition payments coming up? Can you afford your rent or mortgage if you don’t have a paycheck for a while if it doesn’t work?

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