How to Negotiate a Startup Job Offer

After years of working in a lifeless cubicle, managing a strict 9-5 schedule, or clocking in at a job that doesn’t motivate you, everything’s about to change — because you just landed the opportunity to work at a startup.

Now, we know that working for a startup isn’t necessarily everyone’s dream. But for those who want to get in on the ground floor, or have a passion for helping a business grow and thrive, receiving an offer from a startup can truly feel life-changing.

But where does one begin with startup salary negotiations or conversations around benefits?

You deserve to not only work somewhere that inspires you, but also to receive adequate compensation, which is why we’ve put together this quick guide to help you negotiate the best startup offer possible.

Where to Begin Negotiating a Startup Offer

Salary and benefits are typically the most important negotiating factors when it comes to a new job offer. Things like interview etiquette and fear of having an offer rescinded, however, can make it hard for job seekers to start these conversations. Here are some tips to help ease your fears and ask for what you deserve:

1. Come Prepared – Before you even receive the official startup offer, research what kind of salary others working in similar positions typically receive. Compare this to your current salary, and be prepared with arguments for why you think you deserve to be paid more. Not sure where to look for this information? Check out CyberCoders’ 2023 Salary Guide.

Aside from outlining your own worth, you can also point to higher rates of inflation or the rising cost of living to justify asking for more money.

2. Understand Startup Limitations – When negotiating your startup offer, you want to make sure you understand what accommodations are and are not possible. If the startup company is fairly new, they might not be able to provide you with all the professional resources you’re accustomed to. Instead of requesting top-of-the-line equipment or the latest software, perhaps request something less costly. For example, many startups are pet friendly, so maybe it’s time to finally pull the trigger and adopt that rescue ferret you’ve been wanting and bring her to work with you!
3. Know Your ‘Non-Negotiables’ – Make sure that your non-negotiables are understood and taken into consideration. This is where the freedom and flexibility associated with startups can really come in handy. If you need to work from home some days because you have kids, or maybe you’ve got a standing appointment that requires you to take a long lunch once a week, these are the sort of things that startups are often equipped to offer.

How to Negotiate Equity and Stock Options

Now that you’ve nailed down your desired salary and have a well-curated list of personal requests, like a gym membership or subsidized ferret food, it’s time to talk about equity. More specifically, how to negotiate equity at a startup.

In addition to flexible work hours and dog-friendly offices, startups are also known for offering their employees equity in the company. These offers can be very lucrative, but make sure you know what’s really on the table before automatically saying yes.

• Research the company ahead of time, focusing particularly on valuation and projected financial potential.
• Look into the financial success of similar companies as well as the stock options being offered at competing startups.
• Lastly, come up with stock options that fit your life and financial goals, because the perfect equity package won’t look the same for everyone.

If you don’t feel confident in your understanding of the equity offer or your ability to negotiate stock options at a startup, you may want to consider seeking the help of an employment attorney or financial advisor.

If They Still Aren’t Playing Ball…

Let’s say they don’t accept your counteroffer — What now?

If you think there’s a chance they’ll budge on your non-negotiables and if you’re positive that this is the company you want to give your time and energy to, then counter again.

That said, if you don’t get the sense that they are willing to work with you, or if their initial offer was insultingly weak, then you should look for something else. Know your worth and only compromise in areas of your life which you feel comfortable doing so. If you’re afraid to walk away because you’re worried you may never receive another startup offer, we can help with that too. Check out CyberCoders’ recruitment services and start a new search for your professional true match today!