5 Signs of a Company Planning to Flip

Flipping Start-up companies is a growing business in the corporate world. Flipping companies is to the corporate world as flipping houses is to the real estate world. However, the problem with flipping companies is that the underlings that operate the day-to-day business are usually kept in the dark about the company's long- or short-term goal, as the case may be. As such, I've put together the top five signs that your company is planning to flip.

5. Emphasis on Marketing and Branding

When there is more emphasis on marketing the company and/or branding, be careful. Start-up companies that have long-term goals of operating within that market realize that they have time to build their brand.

4. Disconnect or poor communication between executive officers and operations

Start-up companies demand strong communication between the executive officers and the operations team. The executive officers are in charge of guiding the company to its short-term and long-term goals. They should be very involved with the day-to-day operation. The executive officers and operations should be meeting at least weekly if not daily in a start-up company.

3. No budget

Every successful long-term company needs a budget for the company and for each department. If the CFO cannot produce a budget for your department, then it is an indicator that the investors have deep pockets. Investors with deep pockets want to see a quick return on their investment.

2. Flexible business model

If the CEO or president talks a lot about having a flexible business model, it means that they are not ready to peg hole themselves into a particular model. Peg-holing the company could throw you out of the running for being purchased by a larger company that isn't interested in converting a well-entrenched business model.

1. Acquires other companies

Acquiring other companies is an easy way to boost revenue on paper. It also diversifies the company's portfolio. This makes the business look more attractive to the larger companies in the market. This is especially worth noting if it occurs within the first couple of years of the companies operation.

There are advantages and disadvantages to working for a start-up company. The largest disadvantage is of the risk. If the company does not succeed or is planning to flip, then there is not going to be any stability. Start-up companies also come with a lot of stress, as they often require their employees to wear 'multiple-hats' and work long hours. The advantage is that advancement typically comes a lot faster for the hard worker. The experience of which, whether short lived or not, may look very attractive on a resume. If you want to avoid companies that flip, ask the right questions at the interview. These questions can range from, "what are the long-term goals of the company" or "is the company actively seeking to acquire other companies within or outside of the industry." Be careful what you get yourself into, know the signs, and keep yourself available. Don't forget that there's nothing wrong with companies making offers of employment to you even when you are happy with your current job.