Main Advantages and Challenges on Why work for a startup

I love the startup scene, its energy and passion with a desire to create an impact in the world are unquestionable. Although it sounds very sexy, the answer to the question – of why work for a startup need not be simple. You’ll be investing the most important resource – your time and emotions at the prime of your career. It sounds amazing and cool to work for a startup, but it has its challenges too.

The following article talks about the benefits and challenges of working for a startup. Choose carefully because this decision will impact not only your career but also your personal life.

Why work for a startup

A startup obviously is a very exciting place to be. With most of my experiences in the startup world, I have a soft corner towards startup jobs. The one tip however I’d give a job aspirant is to understand which stage the startup is at so that they can assess the risk. You’re better off working for a heavily funded startup in the expansion stage compared to the early stages. In the early stages, risks are higher because the startup is trying to achieve a market fit. (Related: why startups fail)

Why work for a startup? The obvious answer is – it gives you access to all stages and aspects of a company. In a large organisation, you can be an expert in a specific area. However, in a startup – you’ll need to go beyond your role to identify the business as a whole. With a startup, you can define your own role. However, in a corporate job, the roles are already defined and you have little flexibility in changing its expectations.

Pros and cons of joining a startup

Here are a few pros and cons of joining a startup in your career. It is not always a smooth ride but can be an exciting and fun-filled one if you dare.

Advantages of working for a startup

Learning Opportunities: You can learn beyond your area of work which allows you to understand the entire business model. In a corporate job, you can be an expert in a specific area. But a startup gives you the opportunity to learn beyond your specific area of work.

Innovation: At a startup, you’re at the brink of innovation. Working for a startup also means that you’re creating something new – an unmet need or trying to solve a problem that hasn’t been done very well before. Ultimately joining a startup means that you can be a part of creating something new and exciting.

Every day is different: If you’re someone who enjoys change at a high speed – a startup is a perfect place for you. In fact, you might not even have to ask why work for a startup because you’ll have all the opportunities to explore.

Large gains: If a startup is successful – as early employees, your shareholding can be of immense value. It is almost akin to taking risks by joining a startup and being rewarded for its success when it goes through a sale or IPO. (Related: the value of Stock options in startup)

Disadvantages of working for a startup:

Undefined HR policies: Since a startup is new – the HR policies are not always well established. In fact, you’ll end up working more in a startup environment as opposed to a corporate job where the rules of engagement are clearly defined. Most of my startup experiences have been beyond the standard working engagements.

Uncertainty and risk: As exciting as it sounds startups are also uncertain – you’re not as protected as you’d be in a corporate job. The hiring and firing policies can be rather strict and fast-paced. If the funding runs out, your role can be in danger quickly.

Ultimately, if you want to work for a startup – it will demand a different persona from you. A corporate job might have more perks than a startup. In the startup world, we used the terminology delayed gratification rather regularly. It just meant that we will wait and make smaller sacrifices for the ultimate goal of making the startup a success.

Benefits of working in a startup company

We’ve captured the benefits of working in a startup company in the pros and cons of working in a startup. However, I will list them as below:

• Being a huge part of the company’s outcome vs cog of a machine feeling
• Ability to influence the direction and strategy of an entire business
• Innovation – working on cutting edge solutions
• Wider and deeper responsibilities, in some cases you’ll know everything about the startup
• Learning opportunities are immense – a steeper learning curve as opposed to corporate job
• Huge earnings if a company is successful
• Things move fast – less bureaucracy
• Creating something new from scratch

Challenges of working in a startup

Along with benefits, you also have the following challenges of working in a startup

• Not great for work life balance
• Its HR policies are absent or ill established
• Poorer pay compared to corporate jobs and you’ll not have all perks
• Uncertainty and high risk if company goes bust
• Lack of structure and changes can be too frequent
• Your career path will be more generalisitc than specialisation making it more challenging to come back to traditional jobs
• Limited resources to achieve your results and provide you support

Summary – Why work for a startup?

Ultimately, it is your choice about working in a startup. It has got both benefits and challenges. But the most important thing to consider is what works best for you. If you’re convinced of an idea and its efficiency, nothing can stop you. If your motivation however is financial – it’s not a good place to be. You can achieve better success in a corporate role.

The answer to why work for a startup is deeply personal. You will make a few sacrifices and sometimes, these sacrifices are not worth it. Choose carefully because the most important investment will be your time and you need to make that choice wisely.