#AskPS
Riya Oberoi .

My brother has got two options in hand and really confused which one he should persuade.

๐Ÿ‘‰ย Rs 9 lakh package, with standard employment terms

๐Ÿ‘‰ย Rs 6 lakh package with job guarantee of 2 years.

Both are startups. Option 1 has raised over $50 million so far but in loss (like many startups in growth stage). Option 2 has raised $1.3 million so far but profitable bcoz of its heavy reliance on bootstrap model.

Originally Posted Here
35 Comments

Dhrub

Option 2: Bootstrap culture will teach him some invaluable lesson which can help him for his entire career. Fundraising amount is just a vanity metrics!

Sanjeev Agrawal

Option 1... since he is covered already as much as 1.5 years in Option 2... so anyways heโ€™s in the risk of only 6 months Job security which Option 2 is offering. And its worth taking this risk. And the browny point would be if Option 1 also turns out to be a long term prospect. Secondly since both are start ups, learning will be similar. Thirdly he shud also consider his inclination of interest towards the products involved in both the options. In that case money matters less.

Jatin Nagpal

Consider his Interest in his profile on company's product/service, as both the offerings are almost same.
Interest will differentiate at last.

Akhil Kumar

Option 2 - a company which had a bootstrap culture will continue for a long run , growth will be slow in terms on salary but will yield you experience which u can encash

Sandeep M. Naik

There is no such things as job guarantee. Its better to analyze with how well he would gel with the founders / core team based on the interview as well as the industry and the work which is being offered.

Naman Nanda

+ 1 Riya, trust me no startup will offer someone 2 years of a job guarantee, large companies like Big4 also have 1-year contracts, having an expectation that 2 years is fully secured is a sham

Naman Nanda

My 2 cents, "Option 1", top 3 reasons 1st Better Pay (even if he stays there for 1 year his next appraisal will be on 9 lac, not 6 lac) 2nd Better Brand and Funding (I am guessing a start-up who has raised $ 50 mn would be top 3 in its the domain , itmatters you are working in the organization who is top tier in its domain that may not hold true for other co. ) 3rd Team - Better funds gives liberty to hire top-notch individuals who would otherwise work for very selected org. gives you great deal of perspective

Anaggh Desai

Heart says option 2.
Mind says option 1.

Pranav Agarwal

Go for option 1; the base salary gets pegged and that helps even if he has to look for a job after a year or so.

Vikram Sathey

Already thinking of switching before even joining this job.

Pranav Agarwal

not switching in case he is let go (which I am assuming is the risk in Option 1)

Sri Ram Suravarapu

The job guarantee would also have terms and conditions in profitability towards the company obviously. So there isn't anything like guarantee I feel, I would say option 1!

Shachindra Saxena

I am sure if he is evaluating then it is a certainly that the role / work he would be getting is related to his passion. I am
Sure if he likes that role then he will definitely excel in that and can gain much more than option 1 in future.
My two cents๐Ÿ™

Bharat Garachh

Where he get good salary, option 1

Vini Katyal

There is nothing like job guarantee in the startup world. Will go with first option Pay, also the team he is working with, the colleagues , managers play much more important role

Shaju Nair

Option 2

Kshitij Patil

I'm gonna give a kind of fluffy answer, but get this:
The fact that he's even considering the less paying option tells me that money isn't much of a factor and he can sustain himself pretty comfortably even in the worst of days.
So, the only option left is which of these startups drives your brother enough to wake up every morning and go to work.
The second thing he has to consider is which of these startups does he think he can add THE MOST value in.
In the end, assuming both the startups crash and burn, he would have a better growth/efficiency number on his resume. That has better value in the long term than the drawn CTC because everyone knows its quite easy to get one's pay inflated, but it's difficult to show documented growth %.
That being said, unless it's a Govt. startup, there's no such thing as job guarantee.

Shivam Malhotra

Job guarantee is a myth not just in startups but also in MNC's.You can be fired whenever the company wants and even if you've a legal agreement,its unlikely that you'll take them court for revoking a 6 lpa job offer in the future.I dont think the amount of funding raised should be a metric or even the salary amount.

I'm assuming your brother is young (under 25) and he's just starting his career.Let him pick whichever company he wants based on passion & aligment to the product/goals of the organisation but the fact that he's considering the second option with a 33% reduced salary gives a hint that there's something about this company which he likes (apart from the 2 year job guarantee).Wishing him the best!

and if he isn't passionate/aligned to any company then go with the 9 lpa offer.I've always chosen passion over money and when there's no passion,I look for money.Have worked with clients at a lower cost because I liked the company & even worked with those who I didnt like because they were paying so damn well!๐Ÿ˜€

Amit Savargaonkar

I would go with the second option NOT BECAUSE OF JOB SECURITY but because of vertical growth potential. The company is just trying to take off.

Such companies are like "old society buildings listed for re-development". The moment that society sign-up with the builder the rates increase dramatically.

So option 2

Prajnyasis Biswal

Option 1. You learn more in a growth environment.

Vaarrun Shreshtth

Joining any firm is totally a personal experience. Just hope wherever your brother joins he is able to contribute and gets fit into their culture.

Aditya Kushwaha

Option 1 and switch asap

Baba Mitra

Option 3 : Tell him to show option 1 offer letter to option 2 company and ask for more and option 2 offer letter to option 1 company and ask for a joining bonus of 1lakh

Shivam Malhotra

bad option.If someone would play with me like that,I'd prefer revoking the job offer! (A scenario you probably didnt think of)

Baba Mitra

I think of all options. If a person gets caught then he is not smart enough.
Prior to my entrepreneurial journey I have done this and I got the desired profile and package (A scenario I had very well thought of)

Shivam Malhotra

getting lucky once doesn't make it a standard option for all and there's nothing to be caught.You got it because the company thought you were irreplacable or they were desperate for someone to join asap.For someone who is joining a startup and playing with the future employer with offer letters is more likely to get burnt instead of getting the desired result.

Dimple Khubchandani

I would choose option 2 if i have a plan to stick to them for 3years and above and i would choose option 1 of i i dont know if i want to stick for more than an year or max 2 ...

If he has asked this question thn am sure he needs a third party opinion or external validation to make a choice

Ankit Prakash

He should take "Rs 9 lakh package" ahead.
He should accept the challenge and outperform his career. Take up the next. This should be his focus.

Company data like these are bullshit while evaluating for a job opportunity.
These discussion can be helpful when your brother had plan for CxO positions.

Monami Mitra Deb

Risk taking ability depends upon the stage of life your brother is in currently. Is this just about his career or are there others dependent upon him and this job for financial security? What kind of role are both the companies offering? Will being ina larger brand benefit his career more? How is the job market looking for people in his domain and at his level of experience and expertise?
Lastly which sectors are both the startups in? Which of those industries are going to be valid in the โ€˜New Normalโ€™?
I suggest that please look beyond the numbers and the immediate situation. The market will be uncertain and a finicky employer for the near future.

Kamonasish Aayush Mazumdar

Rough rule of thumb, more true the younger you are.
Profile > Industry > Learning > Earning

Having said that:
1. There is nothing called job guarantee. It doesn't matter what the company says.
2. Loss making companies are not necessarily under loss because they can't be profitable.
3. There is nothing called bootstrapped that has raised $1.3 million dollars.
4. A company can't promise that it will always remain profitable.
5. Even less so when you don't personally are a director on board.

If you want more specifics, kindly name the companies openly.

Also check actual in hand component.

What about ESOPs?

Riya Oberoi

ESOPs only in equation after 2 years and conditions to 5 years of unlocking period.

Naming company on a public forum - untill joined - may not be a good idea !! I don't want to get blamed by him if something goes wrong because rid this.๐Ÿ˜‰

Agni Chatterjee

where he can learn more. If both are same, then choose the one which pays more:)

Aniket Deshpande

2nd option

Neeraj Tiwari

Option 1. He can learn and experiment more and grow personally. The Option 1 company will do everything to become profitable and raise more and this will be chance for him to grow. Job security is a myth.

Riya Oberoi

Thank you everyone for your time and attention. Your valuable feedback has helped my brother as lot to take informed decision. He is yet to make a final choice though - 5th is the last day - all above views have moved him closer to a mindful decision.I really appreciate time and effort everyone has put to help me here.๐Ÿ‘๐Ÿ™

Also, thank you Ansha Dixit, @Neeeaj and all PushStart team for making such a responsive, active and wonderful community.๐Ÿ‘๐Ÿ‘๐Ÿ‘๐Ÿ‘

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