For many novice job-seekers straight out of university, it can be hard to get a foothold on the career ladder at an established company. You may not have a long list of skills and experiences to build up a CV and compete with more accomplished candidates: if that’s the case you may be more likely to get your foot in the door by working in a startup.
As well as being a perfect way for graduates to begin their career, a startup also allows more freedom for those who find the idea of a fixed 9 to 5 job with a fixed salary but a dull and repetitive routine unappealing.
Many startups offer vibrant, youthful workplaces where you can fully unleash your creativity and innovative side. And since these companies operate on a minimal workforce you may have ample opportunities to work in different areas of expertise and gain new skills.
However, there are also some downsides to working in a startup you should consider before deciding if this type of company is right for you. Below we break down the biggest pros and cons of working in a startup and whether or not it would help your career.
What is the definition of a startup?
Before you can decide whether or not working at a startup is for you, you should fully understand what the term ‘startup’ actually means.
By definition a startup is a company that is in the early stages of developing and establishing itself in the market. It may still be in the process of sourcing venture capital from banks or investors, or be entirely self-funded by its founders.
Startups also usually:
- Have 1 to 3 founders and less than 50 employees
- Identify an open niche in a market and focus on filling it
- Focus on growth
- Prioritize innovation and forge their own working practices.
Startups also have a reputation for fostering a youthful, creative working environment. The logic is that creativity fuels innovation and growth.
So the founders may seek to create a fun atmosphere that stimulates the imagination and reflects their own personality, at least in the early stages.
The founder of a startup usually has a clear vision of what they want to achieve and is willing to innovate and experiment with different approaches to make the dream a reality.
Startups also encourage much more of a collaborative, non-hierarchical structure than an established company. Therefore, it’s not uncommon to have the CEO or ‘higher-up’ regularly come to their employees for opinions and advice in the search for the best common solution.
Benefits of working in a startup
Depending on what you’re looking to get out of a job, you may see several benefits of working in a startup. One of the biggest positives for many people is the less restrictive working environment, and you may be able to:
- Wear casual clothes and forgo a formal dress code
- Work across different spaces around an office, or even from a café or from home
- Take numerous play breaks, eg. for table football, video game tournaments, or ping pong
- Suggest different working practices to improve company culture
- Take pets to your workplace
Aside from these workplace comforts, there are also several professional benefits you can gain from working in a startup.
An exciting work culture
Most employees of startups (and even many of the founders) are likely to be in the same position as you are – young, optimistic, ambitious, driven and looking to attain the work-life balance sweet spot. There is usually an incredibly supportive and collaborative attitude.
It’s therefore much more common for startup teams to both work and socialize together as a team, participate in fun team-building exercises, and create strong interpersonal relationships in the workplace.
The fact you are among peers also makes it easier to build trust and collaborate closely with less fear of judgment or of approaching ‘superiors’ to solve problems together.
Diverse roles and responsibilities
Many startups do not yet have a fully defined structure and fewer resources than established companies. Therefore, you may find yourself undertaking a diverse range of responsibilities that both fall into and outwith your job description.
This can be of enormous benefit if you are just starting out on your career path, as it will allow you to add a number of skills and experiences to your CV.
It also helps you develop flexibility and initiative, as you may be asked to undertake unexpected tasks at shore notice and need to adapt to the demands of changing business needs.
Allow You to Get a Comprehensive View of a Business
As noted above, you may be exposed to many different areas of a business outside of your niche while working in a startup. This can help you better understand the different parts of a company that you can put to use if you ever decide to start one up yourself.
You can expand your knowledge outside of your specific area of expertise and learn about the steps needed to start up your own future enterprise.
Fosters a strong work ethic and perseverance
Startup workplaces can often be incredibly tight-knit and you can feel a real sense of personal ownership over the company and the product.
This heightened sense of responsibility can help you work even harder to achieve success for you and your workmates.
It also pushes you to innovate, preserve, and cultivate inner drive and self-sustainability which will serve you well in your entire career.
Cons of working in a startup
While there are many benefits of working in a startup, there are also some downsides you should consider before jumping in feet first to a new venture.
Some of the cons of working in a startup can include:
- Demanding workloads
- Long or irregular hours
- Pressure to constantly innovate
- Lack of a established workspace
- You may need to work completely remotely
- Unfined core processes and procedures
There is also the high failure rate of new startups – less than 10% succeed in the long run. This is an important consideration to take into account your future, as having had a role in a failed startup can reflect badly on a CV.
This is especially the case if the venture failed for a lack of funding, of which you were partly responsible. Then again, if a startup succeeds and continues to see good growth, then you can point to your part in it when you eventually decide to move on to a new opportunity.
Do startups pay more or less than traditional companies?
Perhaps one of the biggest cons of working in a startup rather than an established company is that, in general, startups tend to pay much less.
While it’s certainly possible to find fun high paying jobs at a startup, this is usually only the case if the venture already has a few years under its belt and is already on its way to becoming a success.
It’s estimated that startups pay their employees 5% less on average than traditional employers, and that workers earn around 17% less over 10 years than their counterparts in established firms.
As startups are considered risky ventures, there is also a high chance you may find yourself unemployed if it fails to get off the ground.
However, loyalty can ofen reap rewards. Even if you start off with a low salary, you may find yourself being handsomely rewarded if you have a hand in a startup’s growth and success.
Additionally, some employees who have invested in stocks for their company at the beginning have seen unexpectedly large payouts later in the game and ended up with massive wealth.
How to decide if you should work in a startup
When deciding whether you want to commit to working in a startup, perhaps the most important thing to consider are the skills and personality qualities you possess that would allow you to thrive in such an environment.
Personality traits that can serve you well in a startup include:
- Being a team player
- Creativity
- Flexibility
- Personability
- Reliability
Favorable qualities to have to succeed in a startup include:
- High motivation
- Sales abilities
- Technical skills, both specific and general
- Data Analysis
- Marketing and social media know-how
Having multiple skill sets, abilities shared across two or more fields, can also put you ahead of the crowd in the eyes of startup recruiters. Even if you are not an expert in all your areas of knowledge, showing a willingness to expand makes you a valuable asset.
Tips for landing a job at a startup
The most important thing when applying for a job at a startup is to first extensively research the business, the type of culture in the workplace, and the values the founders of the startup hold.
This will help you make an informed decision about whether the company is right for you. If you don’t get a clear picture of the startup from their online presence and make it through to the interview, make sure you do some probing.
You might like to ask:
- What a typical working day would look like
- What kind of deadlines and workloads are set
- What the pace of the work is
- What kind of benefits are offered
If the company has a presence on job sites, make sure to check out employee reviews or comments to get insights into the startup’s culture and values. You might even get some ideas for things to include when tailoring your cover letter or CV to the startup’s job description.
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