Ask questions that test the validity of a company's claims about partners and customers. The same goes for customer lists, says Smith. In the end, the most useful information may be the one tidbit that tells you a company is not long for this world, and thus worth not another second of your precious job-hunting time. Another warning sign, especially in today's capital-constrained climate, is a plan that requires an unusually large amount of future financing to reach breakeven. He notes, however, that the number depends on how capital-intensive a company's industry is.
Larger outlays are appropriate in high-speed networking, for example.
Smith agrees that big-burn companies are tough to get funded. And watch out for a company with huge office space and only minimal plans for filling it. Tenety says generally, no, though the practice is more common and accepted among executives, who have more to lose from a bad move and soon may be privy to the information anyway. Still, in today's difficult climate, almost anything goes. On the other hand, people who ask such pointed questions can create the impression that they understand a company's business.