Working for a startup isn’t for everyone. The challenges include long hours, uncertain job security, and the risk of failure. However, for the right person – those who thrive in dynamic environments – the opportunity to help build something from the ground up can be incredibly rewarding, both personally and, potentially, financially.
So, what are the rewards of choosing a young, ambitious company over a large, established corporation? We’ve gathered insights from business experts and successful entrepreneurs to explore the unique benefits of startup life.
- Increased responsibility and opportunity
No matter how ambitious, startups typically begin with small, passionate teams who wear multiple hats. While this can be demanding, it also presents lots of opportunities to take on leadership roles and develop new skills.
These experiences can provide a major boost to your CV, offering the chance to develop your career in various directions. As Kerrin Sheldon writes for Fast Company about his startup experience: “Working at a startup will allow you to try on a lot of different hats, even that weird one that you didn’t think you would ever like, but find out that you did.”
- A stronger sense of purpose
In large corporations, it can be easy to feel disconnected from the overall mission. In contrast, startups generally offer a more integrated environment where CEOs and employees collaborate closely, giving everyone a voice and the chance to have a measurable impact on the company’s performance.
As Elena Bajic, founder of IvyExec.com, highlights in Forbes: “There’s a big emphasis on team dynamics and work culture—which can facilitate lifelong and meaningful relationships with colleagues and mentors.”
- Building a stronger network
Startups are often part of vibrant, collaborative communities. Unlike in bigger companies, where departments are often separated, startups encourage interaction across different areas. This means you’ll likely have more opportunities to build your professional network, potentially connecting with investors, mentors, and industry experts.
These connections can open doors to new ventures or leadership roles further down the line, making your time at a startup a valuable stepping stone in your career.
- Freedom to innovate
While big corporations focus on executing tried-and-tested strategies with maximum efficiency, startups are about innovation. They’re usually trying to do something that’s never been done before (or at least do things in a different way). That’s a major challenge, but also a chance to think differently and get creative.
“You’ll have lots of opportunity to dream, shift directions, and try new things,” says Ralph Specht, author of Beyond The Startup and Building Corporate Soul. “If you come up with a new solution to a problem, for example, often startups are much more open to experimenting than the average company. Employees are expected to bring innovative ideas to the table.”
- Potential for a financial stake in the company
“Higher risk, higher return” is how web developer Bahadir Mezgil describes the choice between working for a startup and an established company. While many startups don’t survive, and initial salaries may not compete with those of major corporations, the potential rewards can be significant.
However, many startups offer early employees shares or stock options (the right to buy a specific number of shares at a pre-set price) as part of their compensation package. If the company experiences rapid growth, these options could become worth “life-changing” sums of money, as Mezgil notes. Startups can also provide a more meritocratic environment with fewer office politics, making them ideal for career progression.
- A crash course in entrepreneurship
There’s no better way to learn how to build a company than by joining one in its early stages. Working alongside the founders offers “an unprecedented look into the realities of entrepreneurship,” says Matt Gavin, from Harvard Business School Online.
You’ll witness firsthand what it takes to scale up a business, build a brand and hire the right team to take the company to the next level. As a result, Gavin says, “you’re able to think more like a business owner and come up with ideas that don’t just benefit you and your team, but the company as a whole”.