The Pros & Cons of Working for a Startup
Startup. Does this word send shivers of fear or excitement down your spine? Is working with a shiny and new business concept appealing or repulsive to you?
I had the privilege to work with different startups and companies and deeply understand their business approaches. My first job was at a startup company; there were only a few of us when we started, less than 10 people. We often went out for lunch together, celebrated our birthdays and worked hard together. We knew and interacted with the management closely and they knew us as well.
From flexible schedules to the opportunity to learn the ins and outs of a growing company, employment at a startup offers several benefits. However, it's also important to know the potential disadvantages of this career choice. If you're entering the job market or making a career change, the startup field can be intimidating. In this article, we explore both the good and the bad, the frights and delights.
Pros of Working for a Startup
Evident employee impact: While at a large firm you may be one employee among many in your job function, at a startup, you are usually the only one doing your job, and you may also be filling a few other roles along with it. However, because the company is small, your work will be evident, and it’s nearly impossible for someone else to take credit for your accomplishments.
Flexibility & freedom: While this doesn’t reverse the need to deliver on the job (remember, you may be the only one doing your job), when and how you do the work can be flexible. In reality, you may have to be flexible with how you approach work, especially if you’re working on something that’s never been done before. Trial and error is an essential part of launching a new business, and you may find yourself exercising flexibility as you take on roles you never imagined.
Increased job satisfaction: Knowing that you are actively contributing to the success of a company is a great feeling and can significantly impact overall job satisfaction. Also, because startups have remarkably less employees than other companies, startup founders tend to put more effort into ensuring employees are happy at work.
Minimal supervision: Another great perk of working at a startup is the minimal supervision that employees work under. Given the limited number of employees in startups, supervision is more difficult to spread across each department. This means that employees are often allowed to make their own decisions within their professional roles.
A deeper sense of connection: If you are looking to work at a place that is more about people, connections, and a sense of a team working towards one goal, a startup is your landing place.
Workplace benefits: Startups generally offer their employees several benefits to keep them satisfied and engaged. Workplace benefits include free drinks and food at work, discounts on the startup’s products or services, a casual work environment, a free dress code, flexible hours and work-from-home options, unlimited paid-time-off, pet-friendly workspaces, and shorter work weeks...
More opportunities to learn & innovate: Exploring new territory means no corporate training with an established path for new recruits. Instead, you’ll need to learn as you go, and as the company grows. This setup offers ample opportunity to learn things that you probably wouldn't be exposed to in a more established company. Whereas large corporations tend to have a chain of command in which ideas must flow through, startup employees can take their ideas directly to the top. This is especially beneficial for more creative professionals who regularly come up with exciting innovations.
Cons of Working for a Startup
Unsure job security: Startups can be unstable, and some of them will fail. Working at a startup usually doesn’t guarantee job stability or security. While this doesn’t have to be a non-starter in your decision, it does mean there’s a real possibility your employment status can change at any point. And even if the company doesn’t go under, there may be gaps in funding or resources that can lower or suspend pay.
Less pay & fewer benefits: As startups work to secure funding and launch a product or service, they’re often funneling every spare cent into operating costs. This means you should expect a lower salary at a startup than you would receive at an established firm; instead you may receive some equity in the company depending on your level at the organization. Similarly, startups generally can’t negotiate the same extensive benefits packages a larger organization can.
Unstable work - life balance: Building a business from the ground up requires passion and dedication. While that entails inspiring co-workers, it also means long work hours, sometimes extending into holidays, weekends, or evenings. A need for quick, early wins to achieve growth can accelerate stress and urgency.
Lack of structure: Between fewer employees, uncharted territory, and many first-time leaders, startups commonly have little to no structure, leading to disorganization, missed budgets or timelines, and an ever-changing strategy. Rather than having a clear hierarchy of power and decision making as with larger corporations, it's easy to get confused as to who is overseeing what in a startup. This leaves employees feeling unsure of who they should go to regarding a particular issue, and can result in workplace confusion and uncertainty.
Heavy workload: Working for a growing business usually comes with more responsibility. Burnout and stress are more common in startups that give their employees significant responsibility, one that goes beyond their skill set.
Constant change: Change is a constant and fast in startups. From heading in an entirely different direction on a project, to switching up the roles of employees with little or short notice, the titles, responsibilities and roles of startup employees are regularly changing. This can be a disadvantage should you prefer a more stable and predictable work life.
Too much freedom: While ample freedom is great and even preferred by some professionals, too much freedom can be a downside for others. Startups often provide significant freedom to employees and expect them to thrive under these conditions. If you'd prefer to focus on only one skill or task, the amount of freedom offered by a startup may not be a good fit for you.
Is a startup job right for me?
The answer to that question will be different for everyone. Would you want to work for a startup now that you better understand the pros and cons?
You should consider your working style, whether a lack of structure will inspire or hinder you, and your personal situation, whether your finances can absorb a lower salary. Can your family situation handle a non-traditional schedule, or do you need something more established? Can you manage instability, or do you need consistency?
Startups continue to thrive all over the world, but the odds are stacked against them in countries with closed economies where innovation is groundless. Hopefully, these odds will crumble against the gaining realization that SMEs create jobs and wealth in economies of all sizes.
