Concerns over working for a small company
Discussion
I currently work for the UKs leading vendor of a well known software product; the problem is the pay is not competitive so I am looking to leave.
I have an interview with a competitor soon and they are offering a massively more attractive package (market rate, compared to massively below it which is where I am now), but I’ve got a couple of concerns.
Firstly they are a small business of about 14 employees, compared to the 200 strong organisation I currently work for. The number of employees itself isn’t the issue, but I am thinking more about their cash flow and job security. As their annual revenue can’t be massive and it probably wouldn’t take much of cash flow issue for them to start letting people go.
The second is I’ve not been able to find much about them on the internet, I’ve gone through their website, LinkedIn, Twitter etc., even companies house but they don’t advertise anything about their team, their customers, success stories, etc....
Are my concerns unfounded and does anyone have any advice?
I have an interview with a competitor soon and they are offering a massively more attractive package (market rate, compared to massively below it which is where I am now), but I’ve got a couple of concerns.
Firstly they are a small business of about 14 employees, compared to the 200 strong organisation I currently work for. The number of employees itself isn’t the issue, but I am thinking more about their cash flow and job security. As their annual revenue can’t be massive and it probably wouldn’t take much of cash flow issue for them to start letting people go.
The second is I’ve not been able to find much about them on the internet, I’ve gone through their website, LinkedIn, Twitter etc., even companies house but they don’t advertise anything about their team, their customers, success stories, etc....
Are my concerns unfounded and does anyone have any advice?
I assume you’ve met/telephoned the hiring manager for an informal discussion prior to your formal interview? Did you ask any of those questions during that discussion as part of your due diligence? If not, give them another call.
In general however, size isn’t always a great indicator of potential. I’d be more inclined to confirm if I’m going to enjoy the new role rather than trying to second guess the viability of the organisation. If you’re good, you’ll easily find a new role if the worst was to happen.
Good luck!
In general however, size isn’t always a great indicator of potential. I’d be more inclined to confirm if I’m going to enjoy the new role rather than trying to second guess the viability of the organisation. If you’re good, you’ll easily find a new role if the worst was to happen.
Good luck!
I wouldn't again.
The first company (15 people) I worked for in IT Software was culturally a great place to work, great people and the directors were sat opposite you in the same room as everyone else. The downside was that they just didn't have a way of scaling their development and support teams in a way which would convince larger, more lucrative clients to sign up so company expansion potential was limited. They were eventually bought by a larger company and along came the inevitable redundancies.
The second company of a similar size ended up in a bit of a power struggle between the directors as to which direction the company should go in, leading to "factions" forming along director reporting lines. Again, it was always a bit of a struggle to land new and bigger contracts due to the lack of scalability and a lot of effort was diverted into servicing lower value longstanding contracts. Eventually bought out a few times over.
It's true that there's no such thing as a safe job in the current climate and that it's possible to encounter these issues in any size of company, however the impacts can surface far more quickly in a smaller company.
The first company (15 people) I worked for in IT Software was culturally a great place to work, great people and the directors were sat opposite you in the same room as everyone else. The downside was that they just didn't have a way of scaling their development and support teams in a way which would convince larger, more lucrative clients to sign up so company expansion potential was limited. They were eventually bought by a larger company and along came the inevitable redundancies.
The second company of a similar size ended up in a bit of a power struggle between the directors as to which direction the company should go in, leading to "factions" forming along director reporting lines. Again, it was always a bit of a struggle to land new and bigger contracts due to the lack of scalability and a lot of effort was diverted into servicing lower value longstanding contracts. Eventually bought out a few times over.
It's true that there's no such thing as a safe job in the current climate and that it's possible to encounter these issues in any size of company, however the impacts can surface far more quickly in a smaller company.
Very true comments, although the flip side is that in a large company you can be "let go" without the person making the decision ever having to even know who you are. In a small company the person who decides to make you redundant is probably the person who will have to tell you, and walk you to the door. So they will likely think rather harder before pulling the trigger.
Getting rid of people is never easy, unless you have the sort of psychological issues that would make you awful to work for in the first place.
Getting rid of people is never easy, unless you have the sort of psychological issues that would make you awful to work for in the first place.
I did discuss my concern about not being able to find much about them online with the recruitment consultant, who did pass my comments on to the employer. Apparently, they were grateful for the feedback and will look to work on their website, LinkedIn profile etc.
Other than that, I will just have to ask whatever questions at the interview to find out what I need, and its up to them to reassure me about their stability and future.
The remuneration package is a lot more attractive than what I am on now, and its exactly the same role, but I will tread carefully. It’s a senior position and they don’t come up too often, so if I were to be let go in 6 months’ time it may take just as long for me to find a new position.
Other than that, I will just have to ask whatever questions at the interview to find out what I need, and its up to them to reassure me about their stability and future.
The remuneration package is a lot more attractive than what I am on now, and its exactly the same role, but I will tread carefully. It’s a senior position and they don’t come up too often, so if I were to be let go in 6 months’ time it may take just as long for me to find a new position.
How would you suggest they reassure you of their stability? Not being funny, but what are they supposed to say? I had my business (with three employees) for twenty years before selling my share to my business partner and as far as I know it's still going strong today five years later. Then there are massive nine figure income companies going to the wall on a seemingly regular basis. Maybe rather than wondering how long they'll last see if you can find out their track record - how long they've existed, how they've grown, previous employment levels, previous income levels - that should give you a better idea as to whether they'll still be trading next week or not. 
ParkerG said:
I have an interview with a competitor soon and they are offering a massively more attractive package (market rate, compared to massively below it which is where I am now), but I’ve got a couple of concerns.
Firstly they are a small business of about 14 employees
How healthy are their finances? Will you get anynshares in the company? Firstly they are a small business of about 14 employees
Do you currently do flexitime/strict 9-5. Will it be one of those small companies where people work long hours as the norm, and if so, will it suit you?
Are you happy to do things that would normally not be in your job description at a larger company
To be fair 200 man Company wont be the seismic change that it would be if you went from a multi-national to a 14 man.
SWMBO went form a massive global company in consultancy to a smaller local one (25 Staff as opposed to 10,000+)
Absolutely loves it,, direct contact with all directors daily freedom to do what she needs to do,
I would suggest going to the interview and then asking if you could talk to a couple of members of staff individually when you are there.
this way you can get an idea of the people working there.
remember any company can close at any time!!
Good luck
Absolutely loves it,, direct contact with all directors daily freedom to do what she needs to do,
I would suggest going to the interview and then asking if you could talk to a couple of members of staff individually when you are there.
this way you can get an idea of the people working there.
remember any company can close at any time!!
Good luck
eliot said:
Are you saying you couldn’t find the company on companies house?
To be fair, that won't necessarily be a brilliant help - it will only be micro accounts with limited details available and so a good solid company with clever accountants who have minimised "profits" to manage tax liabilities may look much worse than a badly run company with lazy accountants.The company I'm with tends to grow by buying companies like the one you describe, that would be my only concern but then maybe being consumed by a bigger fish would give you the reassurances you need and the better financials you're after?
Personally speaking I'd really like to get out of working "with" 1000s of people I'll never meet and go back to a smaller company where you're hopefully more than just a stat.
ParkerG said:
I have an interview with a competitor soon and they are offering a massively more attractive package (market rate, compared to massively below it which is where I am now), but I’ve got a couple of concerns.
This would be key for me.If it's a disaster you can soon enough move on to the next role saying your current package is now the massively more attractive package. It wouldn't surprise me if you could leapfrog your way up to a higher point in the company you're at now, though I've never yet decided it was worth going back to a company that undervalued me.
Smaller pond normally means more responsibility quicker which can help your CV. Personally, I prefer smaller companies, everyone knows each other, you have less bureaucracy, fewer people saying something's not in their job description.
If you're worried about the risk of the company going under I'd look at how long they've been trading for some indication of security. If anything, not being able to find an online presence for them and yet getting to 14 people seems a good thing - it sounds like there's plenty of potential for it to improve. What's the revenue stream like - is it consistent from subscriptions or is there a need to make big sales that don't come very often?
I've worked for small, medium and large companies.
Currently in a large US multinational, and I probably have less job security than ever. Essentially I am a personnel number on a spreadsheet, as part of a cost centre, part of a division and region. The person making decsions about cutbacks has no idea who I am or what I do - It's a numbers game. The smaller the organisation the more control you can have over your role and prospects.
Currently in a large US multinational, and I probably have less job security than ever. Essentially I am a personnel number on a spreadsheet, as part of a cost centre, part of a division and region. The person making decsions about cutbacks has no idea who I am or what I do - It's a numbers game. The smaller the organisation the more control you can have over your role and prospects.
I always hated working for large companies, mostly for reasons listed above.
To be, the one single disadvantage of SME is the potential career limitations. If you're relatively junior, that's less of an issue, but as you get more senior, you get to the point where the only position for you to progress to is occupied by the company's owner.
Many large companies see SME experience as irrelevant, so a stint at an SME will be viewed dimly by them if you want to swotch back in the future.
Some people love working in a cubicle farm. The "It's not my job so it's not my problem." attitude that they breed makes me seethe.
To be, the one single disadvantage of SME is the potential career limitations. If you're relatively junior, that's less of an issue, but as you get more senior, you get to the point where the only position for you to progress to is occupied by the company's owner.
Many large companies see SME experience as irrelevant, so a stint at an SME will be viewed dimly by them if you want to swotch back in the future.
Some people love working in a cubicle farm. The "It's not my job so it's not my problem." attitude that they breed makes me seethe.
Looking on companies house I can they have been in existence since 2011, and going through their employees on LinkedIn they recruit 1-2 people a year.
They aren’t on Glassdoor so nothing to be gleaned from that.
I appreciate the comments so far guys, you have put my mind at ease a bit.
They aren’t on Glassdoor so nothing to be gleaned from that.
I appreciate the comments so far guys, you have put my mind at ease a bit.
I don't understand why there would be any more concerns working for a small company over a large one. I really don't.
Greggs started off with one shop at some point. Facebook started in some student flat. The local plumber has been around for 20 years...
Barings bank went to the wall overnight. RBS was hours away from doing the same.
The ONLY concerns the OP should have is whether he wants the job, what the prospects are and if he would feel comfortable working there. Obviously a basic check of how long they have been trading, what their plans are, etc. All of which can be asked at interview. Remember, an interview is a two way street, you are sounding them out just as much as they are deciding on you. A lot of people forget that.
Greggs started off with one shop at some point. Facebook started in some student flat. The local plumber has been around for 20 years...
Barings bank went to the wall overnight. RBS was hours away from doing the same.
The ONLY concerns the OP should have is whether he wants the job, what the prospects are and if he would feel comfortable working there. Obviously a basic check of how long they have been trading, what their plans are, etc. All of which can be asked at interview. Remember, an interview is a two way street, you are sounding them out just as much as they are deciding on you. A lot of people forget that.
Tyre Smoke said:
I don't understand why there would be any more concerns working for a small company over a large one. I really don't.
Greggs started off with one shop at some point. Facebook started in some student flat. The local plumber has been around for 20 years...
Barings bank went to the wall overnight. RBS was hours away from doing the same.
The ONLY concerns the OP should have is whether he wants the job, what the prospects are and if he would feel comfortable working there. Obviously a basic check of how long they have been trading, what their plans are, etc. All of which can be asked at interview. Remember, an interview is a two way street, you are sounding them out just as much as they are deciding on you. A lot of people forget that.
Appreciated, but it's keep in mind I would be going from a well known market leader to a small team that nobody has really heard of. From a personal point of view it doesn't bother me, as I enjoy the role itself and the money is a lot better, but to some it may look like a sideways move. In fact I am sure that topic is going to come up in the interview.Greggs started off with one shop at some point. Facebook started in some student flat. The local plumber has been around for 20 years...
Barings bank went to the wall overnight. RBS was hours away from doing the same.
The ONLY concerns the OP should have is whether he wants the job, what the prospects are and if he would feel comfortable working there. Obviously a basic check of how long they have been trading, what their plans are, etc. All of which can be asked at interview. Remember, an interview is a two way street, you are sounding them out just as much as they are deciding on you. A lot of people forget that.
Tyre Smoke said:
I don't understand why there would be any more concerns working for a small company over a large one. I really don't.
Greggs started off with one shop at some point. Facebook started in some student flat. The local plumber has been around for 20 years...
Barings bank went to the wall overnight. RBS was hours away from doing the same.
The ONLY concerns the OP should have is whether he wants the job, what the prospects are
You've just given some examples of how the fortunes of a business can't always be predicted, and then said that the OP needs to know what the company's prospects are.Greggs started off with one shop at some point. Facebook started in some student flat. The local plumber has been around for 20 years...
Barings bank went to the wall overnight. RBS was hours away from doing the same.
The ONLY concerns the OP should have is whether he wants the job, what the prospects are
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