“Follow the money, always follow the money.”  Start-Up Businesses have a potential for incredibly high returns.  There are relatively low overhead costs, they attract investors and there are numerous funding options available.  Getting in on the “ground-floor” of a new product or service could potentially be very lucrative. 

In continuation of the Follow the Money series of 5 Channels to Unadvertised Jobs (Preamble, Initial Public Offerings, and Mergers & Acquisitions), do not rule out Start-up Businesses as a source to find an Unadvertised Job. 

Whether it is your own garage-based business you finally decide to venture into, or join forces with a business that is in their beginning stage (such as a new manufacturing plant opening or a new service coming into your city), enter into the venture with your eyes wide open to all of the facts.  There is an extremely high rate of failure in start-ups; estimates range between 75% and 90% failure within the first 5 years. 

Most Start-Up Businesses are initially self-funded and cash-strapped; therefore it is important to understand your risk as a job-seeker.  Due to the high-rate of failure, be knowledgeable about your risks ahead of time.  Ask to see the company’s business plan to make sure they have a sound strategy.  Conduct comprehensive research in finance, legal, competitors, marketability, and of course ROI. 

Oftentimes, these start-ups do not succeed as a direct result of mismanagement-not because the product or service was a failure.  As a job-seeker, what could you bring to the table to ensure profitability?  This is your selling point to the start-up business! Be prepared to put in some sweat equity.  However, protect your time/labor investment with an employment contract drawn up to allow you a percentage of future profits. 

Many cities have “incubators” to house start-up businesses and to aid in shared research, technology and expenses, therefore reducing the entrepreneurs’ costs and maximizing the rate of sustainability.  These “incubators” typically have an upward of 80%+ long-term success.  An excellent site to visit for more information is National Business Incubator Association http://www.nbia.org/.

The Small Business Administration http://www.sba.gov/ (SBA) is a government program developed to support small businesses (e.g. federally backed loans). Additionally, they have consulting partners to strengthen and protect the foundation of a start-up (e.g. SCORE).

Stay tuned to the final chapter of the “Follow the money” series and beat the competition to the job and career that is waiting for you.

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