Negotiating salary with a startup can be a bit different from negotiating with a big, established company.

Startups often have limited budgets but offer other benefits like equity, flexible work environments, and growth opportunities.

Here’s how you can effectively negotiate your salary with a startup and what to look out for.

1. Financial Stability

Startups can be risky.

Make sure the startup is financially stable and has enough funding to support your salary and job security.

You must research the company’s funding history and talk to current employees if possible.

2. Equity and Vesting

Equity can be a significant part of your compensation at a startup. It can be valuable, but only if the startup succeeds.

Therefore, ask detailed questions about the equity package and how it works. Try to understand the vesting schedule and how much equity you’re being offered.

How To Ask

You can say something like,

“Can you explain how the equity package works and what the vesting schedule looks like?”

3. Job Security

Startups can be volatile, with roles sometimes changing or disappearing as the company evolves.

Make sure you’re comfortable with some level of uncertainty and ask about the company’s long-term plans. Also, be prepared for the possibility of shifts in your job responsibilities.

4. Benefits Package

Startups might not offer the same level of benefits as larger companies.

You must check what’s included in terms of health insurance, retirement plans, and other perks.

Most importantly, compare the benefits package to what you need and decide if it meets your requirements.

5. Work-Life Balance

Startups often have demanding work environments.

To avoid inconvenience, ask about typical work hours and the company culture regarding work-life balance.

Finally, assess if the expected work hours align with your lifestyle and personal commitments.