A startup company refers to a company in the first stages of operations. It is an entrepreneurial venture which is typically a fast-growing, newly emerged business that aims to meet a marketplace need by offering or developing a process, service, or innovative product. knowing the pros and cons of working for a startup company prepares a person for circumstances that may be beyond their control.
A startup company is usually a partnership, small business, or an organization designed to develop a scalable business model rapidly. Most times, startup companies deploy technologies such as e-commerce, the Internet, robotics, telecommunications, or computers. They are formed with the intention to grow rapidly as a result of offering something that addresses a particular market gap.
There are no fixed parameters on what type of company can be considered a startup. Still, the term most frequently applies to high technology companies that create products leveraging technology to perform an existing task or offer something new. Not all startup companies operate in technology realms.
The word startup became internationally widespread during the 1990s, as the number of internet-related companies and the number of technology increased rapidly. During the 1990s, a great number of internet-based companies were founded. Excitement over their potential led to the dot-com bubble, also known as the tech bubble of the Internet bubble.
Working for a startup company can be different from working in an established organization. We need to know to understand those differences to make an informed decision on whether a startup is the right fit for us or not.
Pros of working for a startup company
1. Learning quickly and picking up new skills
By working in a startup, you’ll often be learning directly from people of similar standing or even the founder of the company Itself. Unlike the larger corporations, opportunities like this are very uncommon among Its workers.
Also, working in a startup is very beneficial because as a worker, you will always be learning. As the business overcomes challenges, makes big changes, and ultimately grows, the workers also develop professionally.
2. Making a visible impact
Working for a startup company can be very encouraging because everything you do will be noticed. You will become motivated when you see your work has a direct impact on the business while at a large organization, you may be one employee among several in your job function.
In a startup company, you will be able to see the direct lines between the effort you put into the company and the success the company has. This is possible because you are a member of a small team. In a startup company, it is more likely that colleagues will be more focused on encouragement and teamwork than competing with each other.
3. You’ll take on more responsibility
In a startup company, you will take on more responsibility because it is typically made up of small teams. The smaller the team, the bigger the responsibilities of the team members. As a worker, you may be the only person with your skillset, and therefore responsible for the whole “division.”
Being the only person with your skillset means that as the business grows, your responsibility will grow with it. You’ll also be involved in decision making that wouldn’t be available to all employees at a larger organization.
4. There is a great company culture
The culture in startup companies is very great because they tend to be hospitable to individual employees and often focuses on making employees feel appreciated and comfortable. Most startup companies live by the mantra “work hard, play hard”, which makes the workers feel more comfortable despite the big responsibilities.
5. There is great teamwork among workers
In a startup company, the small company sizes mean that the workers tend to know everyone who works in the company. Also, cheap office space or lean working conditions early on can lead to strong feelings of camaraderie that are often missing in large organizations.
6. The firm is on a mission
Most startup companies launch to solve, improve, or change a societal issue. Their missions are typically more than just driving revenue. Most of them are purpose-driven.
Cons of working for a startup company
1. The structure will be minimal
Between many first-time leaders, uncharted territory, and fewer employees, startups often have little to no structure, which can lend itself to missed budgets or timelines, disorganization, and dynamic strategy.
2. The workload is heavy
Building a business from scratch takes a significant amount of dedication and passion. It means long work hours for the workers, sometimes even extending into evenings, weekends, or holidays. A need for early, quick wins can accelerate urgency and stress.
Startup companies pay a lot of prices to accelerate their growth. Most startup companies start building the company with small teams that are given more responsibilities. There is always a lot of jobs to be done, for example, launching products, building a good customer base. Accomplishing all these tasks can play a negative role in the workers’ life balance.
3. Expect a lower salary and fewer benefits
Working in a startup company means you should expect a lower salary than you would in an established organization, and instead may receive some equity in the company depending on your level at the organization. Startup organizations pump funds into costs, operating, product development, and growing a customer base.
Also, with the smaller employee sizes, startup companies cannot negotiate the same extensive benefits packages a larger organization can.
4. There is no chance of keeping your job for a long-term
If you are thinking about working in a startup company, you have to consider the fact that there is 70% that it will fail. It means that your long term job opportunity at a startup company is often only as good as 30%.
You can consistently out-perform your peers and hit all your metrics and still be out of a startup company a year after joining. If there isn’t money for payroll there likely isn’t a job for you. If feelings of uncertainty cause you anxiety, then the startup company job might not be for you. While it can be an incredible ride, the startup rollercoaster has some unexpected drops that can be stomach-turning.
5. You’re taking a risk
Startup companies can be unstable. In fact, the survival rate of any startup company is very low. This doesn’t have to be a non-starter in your decision, but It does mean there is a real possibility that as a worker in a startup company, your employment status can change at any point in time. And even if the company doesn’t go under, there may be gaps in resources or funding that can suspend or lower pay.
Is working in a startup company, a good option for me?
It would be best if you considered whether a lack of structure would inspire or hinder you, and also consider your working style. Before working in a startup company, you need to understand all these things. Also, you need to consider whether your finances can absorb a lower salary or if commitments or debt require more money.
Are you able to weather a season of Instability? Do you need something more established, or can your family situation accommodate a non-traditional schedule? It would help if you considered these questions before you work in a startup company.
what is a startup company- techtarget
the pros and cons of working in a startup- floridatech