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

blog.interviewstreet.com

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

#31

Post by Peroni »

arethuza wrote: post #30
temphn wrote: post #26

Earlier quoted context omitted.

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 kee…

Why is it tactless to ask whether a company is profitable (or at least has positive cashflow) and, if not, how much time is left at the current burn rate? Sounds like basic due diligence when checking out a potential new employer to me.

Asking whether a company is profitable is very different to asking to see their balance sheet.

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

#32

Post by jacques_chester »

temphn wrote: post #26
jacques_chester wrote: post #9

Earlier quoted context omitted.

> 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.

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 kee…

> 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.

Now this is interesting. What triggers that reaction? Is it asking for the particular documents, or is it the request for meaningful information?

> 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?

Good point, and looking at it from your perspective, sure, I'd be reluctant to open the kimono too. The main thing that stops me, since we're swapping data points, is that it would be the wrong thing to do. Betraying confidences is both unethical and often contrary to the protections of common law.

> 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.

If you then smiled and cut me short, I'd be suspicious. It sounds like we both lost.

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

#33

Post by matwood »

joezydeco wrote: post #23
matwood wrote: post #22

Earlier quoted context omitted.

All the details may be overreaching, but if I'm joining a startup I definitely want to know revenue, profit/loss, and runway left if applicable. I'd also want to know exactly how they make money or are planning to make money.

Are you joining as an employee, or as an investor? Because if you're not an investor, your ties to the financial state of the company begin and end with the paycheck that shows up on your desk every Friday.

your ties to the financial state of the company begin and end with the paycheck that shows up on your desk every Friday.

And the companies ability to pay that paycheck every Friday are of critical importance. We are all investors either with our money or our time (a paycheck is just a return on a time investment). I don't invest either without plenty of research.

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

#35

Post by Peroni »

johnobrien102 wrote: post #34

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.

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.

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

#36

Post by Peroni »

jacques_chester wrote: post #10
nigelsampson wrote: post #6

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.

> 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.

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.

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

#37

Post by joezydeco »

jacques_chester wrote: post #25
joezydeco wrote: post #23

Earlier quoted context omitted.

Are you joining as an employee, or as an investor? Because if you're not an investor, your ties to the financial state of the company begin and end with the paycheck that shows up on your desk every Friday.

That's a simplistic view of matters. My relation to my employer is not quite so atomistic. I carry enough savings to get by for a few weeks if they go broke or tire of my lame puns; but for many people certainty is worth money . That's why lots of folks prefer steady paycheques to high hourly rates or equity.

All I'm saying is:

1) Companies don't owe you any of this information as an interviewee. Sure, ask about the financial health of the company. But a balance sheet? Good luck.

2) You're going to get lied to in an interview about the health of the company. Do you really think a hiring manager is going to say "Yeah, we're throwing as many bodies as we can to finish this project, or else we're toast"? They want you to believe everything is fine from the day you start.

3) Even the financially secure companies hit the wall, get sued into oblivion, have their core product copied by Google, etc etc etc. You just don't know what will happen next.

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

#38

Post by matwood »

joezydeco wrote: post #37
jacques_chester wrote: post #25

Earlier quoted context omitted.

That's a simplistic view of matters. My relation to my employer is not quite so atomistic. I carry enough savings to get by for a few weeks if they go broke or tire of my lame puns; but for many people certainty is worth money . That's why lots of folks prefer steady paycheques to high hourly rates or equity.

All I'm saying is: 1) Companies don't owe you any of this information as an interviewee. Sure, ask about the financial health of the company. But a balance sheet? Good luck. 2) You're going to get lied to in an interview about the health of the company. Do you really think a hiring manager is going to say "Yeah, we're throwing as many bodies as we can to finish this project, or else we're toast"? They want you to bel…

1) Companies don't owe you any of this information as an interviewee. Sure, ask about the financial health of the company. But a balance sheet? Good luck.

They may not owe it to you just as you don't owe the company anything like showing up for an interview. It's what people do when they want a job and it's what the company should do if they want good people (this applies a lot more to small startup companies than a big corp because a big corp will have a lot of public information already out there). Good people will simply go somewhere else rather than take unneeded risks.

2) You're going to get lied to in an interview about the health of the company. Do you really think a hiring manager is going to say "Yeah, we're throwing as many bodies as we can to finish this project, or else we're toast"? They want you to believe everything is fine from the day you start.

Once again, if you lie to someone to get them to start work expect them to start looking to leave the day they find out you lied. They also will not likely work very well while they are still there. Of course, like #1, if the company is only hiring crappy people then it doesn't really matter. They are usually happy to take a job anywhere and ride the company into the ground.

3) Even the financially secure companies hit the wall, get sued into oblivion, have their core product copied by Google, etc etc etc. You just don't know what will happen next.

This is common sense. No one expects the company to know everything. That's all the more reason the company should be fairly open with potential employees so employees can walk in knowing what to expect. Let the employee decide before being hired if they want to be a part of a company that can easily be copyable or be a potential scam.

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

#39

Post by joezydeco »

matwood wrote: post #38
joezydeco wrote: post #37

Earlier quoted context omitted.

All I'm saying is: 1) Companies don't owe you any of this information as an interviewee. Sure, ask about the financial health of the company. But a balance sheet? Good luck. 2) You're going to get lied to in an interview about the health of the company. Do you really think a hiring manager is going to say "Yeah, we're throwing as many bodies as we can to finish this project, or else we're toast"? They want you to bel…

1) Companies don't owe you any of this information as an interviewee. Sure, ask about the financial health of the company. But a balance sheet? Good luck. They may not owe it to you just as you don't owe the company anything like showing up for an interview. It's what people do when they want a job and it's what the company should do if they want good people (this applies a lot more to small startup companies than a…

It's what people do when they want a job and it's what the company should do if they want good people (this applies a lot more to small startup companies than a big corp because a big corp will have a lot of public information already out there). Good people will simply go somewhere else rather than take unneeded risks.

Wasn't it mentioned somewhere else in this thread that a lot of small VC-backed startups are contractually compelled to not disclose their finances?

And when a small startup says "okay, Mr Experienced Developer With High Salary Requirements, we can't afford you (because we're very tight on cash), but take this Awesome Restricted Stock in lieu of comp", what do you say? Isn't that the big risk that is supposed to lead to the Big Payday?

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

#40

Post by matwood »

joezydeco wrote: post #39
matwood wrote: post #38

Earlier quoted context omitted.

1) Companies don't owe you any of this information as an interviewee. Sure, ask about the financial health of the company. But a balance sheet? Good luck. They may not owe it to you just as you don't owe the company anything like showing up for an interview. It's what people do when they want a job and it's what the company should do if they want good people (this applies a lot more to small startup companies than a…

It's what people do when they want a job and it's what the company should do if they want good people (this applies a lot more to small startup companies than a big corp because a big corp will have a lot of public information already out there). Good people will simply go somewhere else rather than take unneeded risks. Wasn't it mentioned somewhere else in this thread that a lot of small VC-backed startups are contr…

And when a small startup says "okay, Mr Experienced Developer With High Salary Requirements, we can't afford you (because we're very tight on cash), but take this Awesome Restricted Stock in lieu of comp", what do you say? Isn't that the big risk that is supposed to lead to the Big Payday?

That's when you hammer them on what exactly they are doing. What is their product, market, sales strategy, exit strategy, pricing, and finances. Ownership, options, etc... are worthless in a worthless company. Risk doesn't mean going in blindly.

And yes, I've turned down options and jobs before because the CTO couldn't really answer these types of questions during an interview. Interestingly enough, the one company that was most secretive and offered me the most options was the one that went out of business a month after I turned them down. Others, I've heard after the fact how they are horrible places to work. The interview process is a two way street, especially in small companies.

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