Free food. In vast quantities. A lax dress code. Your own hours, within reason. Being part of something, from the ground floor on up.
These are just some of the reasons we flock to startups. For some, it's the first 'real' job after college, for others it's an opportunity to get away from 'corporate America' - or to reinvent themselves. And the promise of 'having fun' while aiming for nothing less than stellar success isn't unjustified. The rise of Uber, Air B'n'B, etc has shown the world that you don't need a vast supply chain or import/export connections to grow large - and successful.
But, those names we all know....they're the exception, not the norm. Neil Patel wrote an interesting Forbes article titled '90% Of Startups Fail: Here's What You Need To Know About The 10%' - assuming the headline holds true, this means 9 out of 10 startups fail. But how is one to know whether his/her employer is struggling? I've talked to some friends, Customers and entrepreneurs and there seems to be a consensus around some of the tell tale signs:
Proven leaders leave: Most startups will try to get 'street credit' early on, by securing an accomplished, big name personality for their C-suite (or, at least, their board). These people are usually recognizable names - and bring instant credibility to a startup. So when those people leave, while you are still being told that everything is perfect, that's a red flag. After all, these names have joined for a reason, usually a mix of salary and equity - so giving that up may suggest that they know something you don't - and that they don't want to be associated with a crash and burn.
Bonus changes: If you are bonus eligible, pay attention to your payout schedule. A change of that may hint at cashflow problems at your company.
Attrition / new hires: Does it feel like every time you turn around, there's another empty seat - that is filled by someone new (but just somewhat less competent) relatively quickly? Or, even worse, are people leaving and your company isn't hiring to fill that seat - while, in the meantime, you sign more Clients and everyone's workload is increasing? Are you told that there are just 'no good' candidates out there? Unless you are building a time machine or a moon base, it would seem highly unlikely that any major city may only have the exact amount of people you are working with already. The 'no talent' speech may be code for financial woes.
Less experienced people do your job: Did your job description specify an array of required qualifications for your job? Then why do you think it is that someone who does not bring the same skills to the table is suddenly working in a capacity similar to yours (but, of course, at a lower salary)?
Abrupt focus on travel budget: Is your organization (or maybe just your (not sales focused) team all of a sudden subject to an 'OPEX watch' that restricts all but 'neccessary' (aka sales generating) travel? Odds are that your manager either didn't pay attention to the budget (which can happen) or that an investor, VC, etc. has reviewed travel and entertainment related expenses and deemed them 'not mission critical'. While this can happen to the best organizations, it's often a sign that a startup is about to miss revenue goals. If that's the case, bonus cancellations or, in really bad cases, layoffs may be immenent. I'm not advocating that you panic each time a trip gets cancelled - but do keep an eye out for patterns.
Your CEO is a serial entrepreneur: Although your company isn't preofitable yet, your CEO seems to be perpetually busy / distracted with new ideas, ventures or other companies. While exposure is great - and much needed - the CEO / leadership team should be laser focused on 'your' startup, not other brain children. Deviation from that might suggest that they're trying to build a life boat....just in case. Or, of course, they're 'just' building companies with the goal to get them acquired by large enterprises as quickly and for as much profit as possible.
Now don't get me wrong - none of these items have to spell disaster for your company. Things happen and great leaders try to adapt to changing climates and do what they deem best for the company. However, great leaders will do so in a transparent, open manner. They won't hide behind 'new policies' that are typically presented by mid level managers to their respective teams. Leaders will announce these changes to the entire company - and budget plenty of time for questions - and answers.