Of late, we are observing a new trend in India; people are turning down offers from MNCs to join a startup. Just a few years back the trend was different. Everyone wanted to associate themselves with big names. This gave them financial stability, security and a social status. But recently we are observing a paradigm shift- people are preferring the roller coaster ride of a startup over a fat corporate check. Why are they doing so? This question becomes essentially important when we hear news of lay offs from startups like Tinyowl, Zomato etc. So if you are a recent graduate or doing a conventional job and mulling whether you should join a startup or not, do analyse the pros and cons of it. Surely there are strong enough reasons to join; but there is another side of the coin as well and it’s not very pretty!
Why you should join a startup
Professional Growth
When you work in a startup you have tonnes of responsibilities and ownership. You are forced to wear multiple hats and you end up doing things that cross the boundaries of your functional domain. You learn new skills and hone the existing ones. As the company grows, you are exposed to bigger opportunities and your professional growth is quick. You can even set out to start your own venture or work in a new startup to help it succeed.
Working with Innovative Minds
Entrepreneurs are a rare breed. They are the most innovative people around. In a startup you get to work alongside these people. When you interact with them and get exposed to their thought process, it instils a feeling of reincarnation in you and you start seeing things differently. This helps you become a better problem solver, leader and innovator.
Lively Work Environment
A startup is a team of rockstars! You will see different people sitting under the same roof working towards a common goal. Here you can experience “tough love”. You can expect your colleagues to appreciate your effort with loud cheers and be ready to handle some constructive criticism when you do something wrong. Also you can let go of all the formalities of a corporate culture. The people in the startups work hard and party harder!
Learn How to Start up!
If you plan to start your own venture in the future, what can be a better a more practical “course” than to join a startup when it is building itself from the scratch! Your mentors will be real entrepreneurs and your everyday work as a team member will be making you smarter and better which will essentially take you closer to your entrepreneurial goal! You will learn how to hire people and to manage and motivate them. You will also learn how to go about managing financials and make short term and long term strategies. Also you will be networking with techies, investors etc whom you will need in your venture.
The Finacial Aspect
Your startup can be a money making machine for you! If the company is successful, your salary, bonuses, other financial incentives can be enormous. If you have stocks of the company and it has a successful IPO or is acquired by another company you will retire with enviable wealth!
The other side of the coin
The Dark Side of the Financial Aspect
Working in a startup might mean not getting paid at all or working for a salary lesser than what you were making in your previous job. You might have stock options and this might give high yield if the startup is successful. What if it fails? And don’t take this possibility lightly. Around 90% startups close down for different reasons. For your startup to succeed, every critical factor has to be well managed and everything must work in your favour. While disruption in just one of the areas might make the curtains fall before the show even begins!
Hard work with Long Hours
The sheer work load of startups is something that cannot be handled by everyone. There will be no work life balance. You might have to work like a maniac for extra hours every day because the startup is racing against time and trying to make the best out of the available resources. The competition is tough and anyone who falls behind in the race will not survive. If you can handle such treacherous pressure, go for the ride. But remember that you are giving it a significant portion of your day and there is little or no pay! Does it look lucrative now?
Lack of Structure
Startups lack structure. Everything’s in a “testing” phase. You may have to fill in the gaps left by others and perform duties that are not mentioned in your job description. As already mentioned, you will have to wear many hats. This can be a great learning experience but this can also be very frustrating and irritating. The team structure, responsibilities or hierarchy-everything is unclear. All these in a high tension, high pressure scenario can take a toll on you.
Ever Changing and no Certainty or Security!
It’s an uncertain world and when it comes to startups the uncertainty is even more magnified. Many things can happen to disrupt a startup’s flow. The VCs can pull out their funding or the competitor can take a major leap forward. Some big name can enter the space or conflict can arise inside the team. As the circumstances change, your identity inside the company changes. You might start working on a project and the next week you might have to dump it because it is not relevant anymore! This can be very demotivating and frustrating. One day you are working for a promising startup and the next day you have an epiphany that you are going nowhere! Even a slight economic downturn can take your startup down to the grave. Large corporations can deal with this problem more easily. Startups are always short of money and when business is lost, they have to let go of their employees and rounds of lay offs ensue.
Working in a startup definitely has its perks but one must consider the bad sides as well. If learning is your main motivation and you have the capability of handling immense pressure then join a startup. If you want security and a relatively chilled out life then startups are definitely not your thing! Do analyse all the pros and cons of all the options in hand and make an informed decision.
