Back story:
I was recently offered a job at an smaller audio visual company as a project manager. Currently, I am in a very stable IT project management position at a large healthcare system that pays well with excellent benefits. The downside is that I am getting bored with it and I have pretty much hit a career ceiling there. The new position would be similar in pay, not sure about the benefits, but would have the added appeal of being given a small stake in ownership of the company.

The company does great work, has a really smart owner who really knows his shit from all aspects of the technical side of the business, and is not hurting for finding more work. To the contrary, I believe they are currently taking on more work than they can handle and the company is getting spread too thin. My concern is this: I'm am not confident that the owner is capable of growing his company fast enough to keep up with demand, thus his business could could suffer from a support standpoint.

9/24/2012 8:54:14 AM

I would stay with stability. Especially given your concerns over taking on too much and possilby losing customers over it. I don't know if there would be any real impact but during an presidential election year seems kind of risky to jump over to a growing business.

Again, I value stability so I'm not a risk taker in any sense.

9/24/2012 11:38:49 AM

i'd actually vote stability too if it were me, HOWEVER, if it pays the same and he has a good chunk of IT management experience, I wouldn't be AS worried. worst case he could end up looking for yet another job some time down the line. IT management won't be nearly as hard to find as the entry-level issues people on this board are having.

9/24/2012 1:46:05 PM

ive heard many horror stories about juming to start up companies that just dont ever get anywhere, especially in the ag science industry

my personal bias would not allow me to leave a sure thing for a shot in the dark, but then again I am a boring kinda guy

id just stick to being bored and wait on a more secure opportunity

9/24/2012 1:56:10 PM

I wouldn't consider this company a startup. They've been in business for 8 years. It started as 3 person operation and now has 18. I've worked with them as a vendor for several years already. They do quality work. I just think they are stretching themselves too thin right now. The owner plans on addressing this. The thing is... while he is extremely technically competent and provides great products and service, he is not a business man in any sense of the word. I think I'd like to urge him to hire someone more competent to address these issues before I think about signing on. Maybe some sort of consultant to work as a type of 'office manager' to grow the service and support area. And maybe bring the whole payroll and accounting in house instead of hashing it out to some temp company.

The ownership stake is what really makes this whole idea interesting. It would only be something small at first like <10%. But still... I find that intriguing.

9/25/2012 7:27:09 AM

When are your shares vested? Considering the size and lack of business knowledge, which makes the company very vulnerable to risk, you dont want to value the ownership stakes very high.

However, personally, once I feel like I can't make any movement in a company, I am quick to look for the exit. I think working for a small company with an established and growing customer base would be very exciting. Good luck.

9/26/2012 8:59:19 AM

I would imagine that the ownership stakes would be vested immediately. I'm not sure if I'd find the offer as attractive otherwise.

One variable is that I don't know what the company is worth right now. What would be the best way to determine a private company's value?

9/26/2012 9:08:03 AM

I too work with/for a large healthcare system, and have had coworkers that came from private sector jobs like you are talking about to here for the security aspect. One in particular was working for an installer/integrator and came here because of the excessive amount of travel, job instability due to market fluctuations, etc. and is now basically doing what you are. He says he is much happier now because he is home every night/weekends, more secure, and all that. He was not offered part ownership however, and the company he worked for was a big name AV company who was fairly safe and had steady work, but he also did not get in on them when they were a small time operation and he could be a partial owner. PM if you have any specific questions.

9/26/2012 9:27:58 AM

Here's the thing about the ownership stake--is the business set up as a corporation or an LLC? Don't want to expose yourself to any liability by taking on a share. Assuming that is the case, then I'd look at the ownership stake like a bonus. If the pay is similar, the benefits turn out to be similar, the company is relatively stable, and you find the position more interesting and challenging, it sounds like a winner. The ownership stake would be kind of a bonus you have a vested interest in maximizing. If the support end suffers and the value does not grow, you're not really losing anything on the deal, the value of your stake is simply not expanding.

Another question, though--what happens if you take the position, and then decide to leave a couple years down the road? Does the owner purchase it back, and at what value? Might want to have that in the contract somewhere. Since the company is not publicly traded (I assume) you cannot simply sell the stock.

Also note that AV project management is a different animal than IT project management, but if you're thinking of taking the position, I"m sure you know this.

9/26/2012 10:02:01 AM

IBTM

9/26/2012 10:04:46 AM

^^ Good questions. I am not sure how the business is set up. I never thought about what would happen to my shares if I decided to leave. I've always viewed the ownership stake a sort of an insurance policy if the owner decided to sell the company. That way I'd have a lump sum of money to live off of until I found a new job (depending on how large the sum was).

Eventually, the benefits won't be a big deal because I would have the option of being on my soon-to-be-wife's benefits. She is being pretty supportive of the whole situation because we could both live off her salary if I wasn't working. But I'd like to at least continue to make contributions. (She is finishing up her residency as an orthopedic surgeon next year so she will eventually be making much more than me.)

My uncle was a salesman for a privately owned lumber and steel company. He had some pretty big accounts and was making bank. The company closed its doors without any notice while he was out at lunch one day. He worked for them for 25 years and they never gave him any clue they were selling. He came back from lunch that day and the managers were telling everyone to have their belongings packed by 4pm. No severance at all. He's been selling paint at Lowes for the past few years ever since with two kids entering college. His pride really took a kick in the balls. I just don't want to be left out to dry like that.

9/26/2012 10:30:59 AM

^Good point about the ownership stake being an insurance policy if the company is sold. You'll want to know what happens if you decide to leave, as I mentioned, but other than that it seems you have your bases pretty well covered and it comes down to security versus professional growth. I've taken the more secure option, and I think it hindered my professional development, so I'd be on the side of "go for it". Hiring an office manager/financials person of some sort also seems like a good development, but that seems like something you could discuss with the owner after being hired. Making your hire contingent on that seems a little aggressive.

9/26/2012 10:54:33 AM

Grass always seems greener on the other side but I'd stick with stability in this economy.

Too much risk to jump ship now plus you'll probably be working overtime in the smaller company. Kiss your work life balance goodbye and like you said, if the company goes belly up you're screwed. Plus I doubt you'll get much benefits like paid time off, 401K match, etc.

9/26/2012 12:49:36 PM

I work way too much overtime now that I don't get paid for since I'm salary.
My work/home life is pretty bad as is at this current job.
I'd get vacation. Medical and 401 if I choose. Not sure about a match.

Wouldn't jumping on a company like this now in this current economy kinda be like buying low in the stock market?

9/26/2012 1:42:11 PM