Questions for private startups (post-launch metrics, strategy, org)
Again, there are a LOT of questions in this section. You probably won't have time to get to everything, so I would pick and choose based on what you're most concerned about.
Reminder of set-up:
Reminder of set-up:
โIโd love to ask (the founders) some questions about the business to better understand how to evaluate my offer, and how I can be valuable to [STARTUP].โ
Post-launch, metrics:
These are more sensitive questions, so itโs best asked of founders / leadership team.
- What key metrics are you tracking around the success of the business? How are you doing on each of them? โ this is a soft-ball if you're less comfortable with getting into the numbers; but still recommend digging into metrics below if founder does not proactively bring them up
- How much revenue are you generating? How much of that is recurring? โ compare this to duration of time to assess pace of growth; compare this to valuation to assess if itโs richly valued
- Whatโs your growth rate in terms of # (paying) customers? In terms of revenue? How have your growth rates changed in the past 3-6 months? โ understand slope of trajectory
- How much of revenue growth is driven by new customers vs. existing customers paying more? โ ideal: mix of both; existing customers paying more is a great sign
- What channels are your biggest growth drivers? โ ideal: organic like word-of-mouth, referrals, SEO; paid channels are ok but need line of sight into how they maintain their edge
- What does customer retention rate look like? What does dollar retention rate look like? โ customer retention rate measures % of customers that stick around; dollar retention rate measures % spend that sticks around; possible to have >100% dollar retention rate through growing spend among active customers
- Are there specific public companies that you believe youโre comparable to? โ get external benchmarks for how big this can be
- Whatโs your runway based on current burn? How do you expect that to change in the next 3-6 months? โ 2+ years are ideal; burn should be maintained or reduced in bad markets
- What sort of growth do you need to meet / exceed investor expectations for the next round? โ check how far along they are
Strategy / org, applies to everyone:
These questions can be asked of the founders or hiring manager โ also interesting to ask these of multiple people to see where team is aligned vs. not.
- How has the economic climate impacted your roadmap? What product areas are you doubling down vs. cutting back from? โ check focus and ability to adapt
- How do you make decisions about what to build? Who calls the final shot? โ check if this fits with how you prefer to work
- Who are your best customers? What have you learned about them? โ check that they have a deep understanding of customer needs
- What are your customersโ biggest objections to adopting / paying for this solution? โ any strong product thinker has this top-of-mind
- What's the plan to 2X, 5X, 10X, 100X from a product / sales & go-to-market perspective? โ check their ability to think and execute on the long-term
- Do you view [COMPANY] as product, sales, eng, design or marketing-driven? Why? โ check if this fits with how you prefer to work
- Letโs assume everything goes to plan. What will [COMPANY] look like? โ check long-term vision
- On the other hand, letโs assume things donโt go to plan. Why would [COMPANY] fail? โ check rigor of thinking
- What's the moat that youโre building? โ long-term value comes down to building something defensible
- What sort of progression would you like to see for someone in my role? โ see if their expectations line up with what you want to do
- What would make someone a uniquely great fit for this role? โ see how much of a shoe-in you are for this role
- What are the top challenges the business is facing today? โ check if youโre excited about these and are uniquely suited to help them
- What are the top challenges youโre facing as a founder / leader? โ get a sense for what you can help them with
If company >50 people:
- Have there been people who have not worked out at [COMPANY] before? Why did they not work out? โ churn is inevitable, important to know why people don't work out
- Based on the employee feedback, what have been the top pain points? โ this is good to ask of multiple people to get different perspectives
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If you could change anything, what would you change about the team? โ also good to ask of multiple people
We're not done yet! See examples of good vs. excellent metrics in the next section ->