How To Identify Executives Who Can Achieve Start-Up Success

Candidates who have successful start-up experience are an excellent and obvious alternative to candidates without it.  But it would be a mistake for start-ups to avoid candidates from big companies.

Five positive traits to look for in big company executives

• Passion - Look for candidates who are frustrated by bureaucracy and the glacial pace of change at big companies. They have high energy and want to work in an innovative environment where they can get something done and create something new.
  
  
• Undeterred by possibility of failure - Good start-up executive candidates are comfortable with risk. The best thrive on it. No one goes into a start-up planning to fail, but good candidates do not dwell on the possibility. They know that if things don't work out they can pick themselves up and move on.
  
  
• Team players - The best candidates are team players who don't need perks or lots of subordinates to feel validated. They focus on results and work well with their peers, team leaders and employees.
  
  
• Focus on equity - No one joins a start-up for cash compensation. Good candidates focus on the upside opportunity and, within reason, will trade cash for equity.
  
  
• Understands the game - The best start-up executive candidates ask savvy questions about the business plan, team members, investors, board members, and financing. They understand the goal is a profitable exit, and can put themselves in the investors' shoes.
  
  

In addition to the positive traits above, you also want look out for red flags.

Four ways to tell if a big company executive is not for your start up

• Risk aversion - Beware of candidates who want a compensation deal that eliminates risk. They may ask for severance terms or bonus guarantees that are excessive for a start-up company. They do not have the stomach for risk that is required to succeed at a start-up.
  
  
• Naïve - Eliminate candidates who demonstrate poor understanding of priorities at a start-up. They might show excessive concern for administrative support or working hours, or pose questions that illustrate ignorance of what start-ups are really like.
  
  
• Status seekers - Stay away from candidates who want all the perks they enjoyed at big companies. Desire for high-end perks shows a lack of appreciation for the financial constraints of emerging companies. Granting them their wishes undermines your team culture.
  
  
• Bureaucrats - Many big companies and large organisations are so highly matrixed that it is hard to figure out who is responsible for what. Weed out candidates who can't point to concrete achievements for which they were directly responsible.
  
  

Remember; be cautious and methodical when evaluating candidates who have never worked at a start-up.  If you proceed carefully, you can identify some great talent, and avoid costly hiring mistakes.

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