When you’re planning your dream career, there are multiple factors to consider, such as industry (e.g., banking, retail, healthcare) or role (e.g., marketing, sales, operations). You might prefer companies of a particular size, such as big companies for their resources or smaller companies so you get to know all your colleagues. Unless you’re working remotely, geography is a necessary factor to consider, and how far you’re willing to commute dictates which local companies to target.
You might not think about how old a company is before deciding whether to apply for a job there. But working for a startup versus an established company can make a meaningful difference in your day-to-day job and how your career path unfolds. There are pros and cons to working for a startup, so it’s not for everybody.
What Are The Benefits Of Working For A Startup?
Not all startups are alike, so you still need to research each prospective employer and its individual pluses and minuses. That caveat aside, here are 5 benefits that generally come with startup jobs:
- Impact. Each and every day, a startup survives is an achievement. Your work means that much more because there are fewer workers to dilute your impact.
- Pace. Startups are generally smaller with less bureaucracy to cut through, so the pace of work is faster.
- Variety. Startups typically have fewer resources than bigger, older companies so jobs are typically broader, as the limit in resources means everyone needs to pick up more tasks.
- Camaraderie. A smaller size gives you more opportunity to actually know your colleagues and potentially work more closely with them.
- Upside. If you get in early and grow as the startup grows, you might profit if your employer offers bonuses tied to growth or options grants.
Are There Any Risks Of Working With A Startup?
The small size and potentially fast-moving nature of startups also has its downsides. With fewer workers, you may have a larger impact, or you may have way too much work. A fast pace isn’t for everybody. Bureaucracy gets a bad rap, but at least it means there’s a structure in place. If you’re not comfortable with improvisation, having no established procedures to follow may be too stressful. Having too much variety or variability in your work can also be stressful. Knowing each of your colleagues may be too much camaraderie – like a Thanksgiving dinner with extended family that goes on too long! Finally, those options might be worthless if the startup doesn’t survive, and you may earn less guaranteed cash in exchange for that potential (now worthless) upside.
Who Should Consider Working For A Startup?
Because working with a startup entails risk, you need to be at a point in your life when you can afford that risk. Your life might not be suited to startup work, if you’re the primary breadwinner, facing large expenses (e.g., kid going off to college, soon to be buying a home) or prioritizing personal commitments (e.g., caring for family, training for a bucket list marathon). You might have savings to mitigate the financial issues or you might decide that working at a startup (or the particular role in this startup) is enough to make you rebalance your work/life. Just go in with an honest assessment about your priorities and expectations.
When Is The Best Time To Get Into A Startup?
There are numerous times along a career path when it could make sense to get into a startup. As you start your career, you may want the structure and brand name of a bigger established company. However, the impact, pace and variety of startup work provides a compelling case for someone just starting out to learn a lot in a short amount of time. As you get more experience, the startup environment might allow you to manage bigger teams or span broader responsibilities than you might at a larger, older firm where roles are defined more tightly. If you’re looking to advance into a C-suite role, you might be able to come into a startup at a higher title and with a bigger (or first-time) P&L time if you’re coming from a bigger company to a startup. Since there are advantages to startup all along a career path, the best time to get into a startup depends on your own history and future career aspirations and how the startup might round out your background and advance (or not) your priorities.
What Is The Typical Startup Culture?
Due to its smaller size and shorter history, startup culture is typically described as nimble, unstructured and expansive, which might help you think more expansively about your potential than at a bigger, established company. However, you’ll want to uncover company culture at each startup you’re targeting. Work culture varies company-by-company – and sometimes even department-by-department. A startup that revolves tightly around a founder who hoards ideas and expects to make all the decisions may be far more restrictive than a much bigger company with new leadership that is deliberately trying to shake things up.
There Are Good Reasons To Work For A Startup, As Well As Reasons To Stay Away
Working at a startup can be very satisfying in terms of impact, pace, variety, camaraderie and potential upside. However, there are risks, and depending on your life situation and where you are in your career, you may be better off at a larger, older firm. There is no single startup culture or experience, so do your due diligence on the specific company and role within that company, rather than make assumptions simply based on size and age.