What to consider before joining a startup

Popular culture loves to romanticise the idea of working in a startup, but not many of us really understand what it’s like to work day in day out in that environment. If you've been wondering - am I the kind of person that would flourish at a startup? This article is for you.

We take a look at different working styles and the environment in which they flourish. We’d like to thank David Carbines, a multinational corporate employee turned successful startup co-founder (twice), for sharing his valuable insights on the topic. From specialised corporate roles with strict processes to fast-paced, fast-learning, high-energy startups, we explore the pros and cons of working for a startup with David so you can take your next step with confidence.

Benefits of working for startups

Joining a startup can be an exciting opportunity to be a part of something new and innovative. While there are certainly risks associated with working for a startup, there are also a number of benefits to consider, such as:

Opportunity for growth

Startups are in the early stages of developing a product and building their core team, which may allow you to take on more responsibilities and play a key role in the company's success.

Flexibility

Startups have a more flexible and entrepreneurial culture compared to larger, more established corporations. They enjoy a lack of rigid processes that can hinder or detract from important work, and this provides a haven for those who thrive in a fast-paced and dynamic environment.

The chance to make an impact

Joining a startup also gives you the chance to make a real impact, whether it be on the company's success or on a larger social or environmental scale. Your ideas and contributions can have a direct and significant impact on the direction of the company.

Equity

Many startups offer equity in the company as part of the compensation package. This can be a great way to benefit financially from the success of the company when it comes time for the big payout, i.e. when the company exits. It’s worth noting, however, that it may also come with the risk of low pay for a long period of time.

Personal development

Finally, joining a startup can be a great learning opportunity. You will have the chance to work closely with experienced professionals and be exposed to thought leaders and experts as startup founders often have extensive experience in their fields. Imagine working with a former astronaut in space tech.

The type of interaction you experience within a startup is unique and can be a great way to develop your skills and advance your career.

Challenges of working for startups

Having spoken to the benefits of joining a startup, it’s important to highlight the challenges that come with it. Here are some of the main factors to consider:

Limited resources

One of the biggest challenges of joining a startup is the lack of resources. Startups typically operate on a tight budget and may not have the same amount of resources as larger, more established companies. This means you may have to be more resourceful and adaptable in your work.

Long hours

Startups often require a significant amount of commitment, and as an employee, you will be exposed to passionate entrepreneurs who sacrifice a great deal to build the business. While you may not be contractually obligated to do the same, you may find yourself occasionally working long hours to meet deadlines and achieve goals.

Risk

Startups are inherently risky, as many as 90% of startups fail and only 40% of the remainder ever turn a profit. It’s important to understand that they are often in the early stages of development and may not yet have a proven track record. This means there is no guarantee of success, and you may face financial and career uncertainties.

Mental challenge

To work for a startup, you've got to be okay with the very real chance of not always succeeding. People who thrive in startups are willing to accept failure and be transparent about it. According to David, failures are treated differently in the startup world. They're embraced and seen as a lesson. If you fail and are able to learn from the experience, you’re halfway to success.

Steep learning curve

As David Carbines points out, there is an incredible learning curve. Each new project crosses new disciplines, from finance into product design, through digital marketing and across human resources. Additionally, you are faced with two distinct challenges:

• you are learning about an entirely new industry, service or product that has never been built or marketed before;
• a lot of founders have never led a team or a company before, and this can have a direct impact on employees. However, as an employee, recognising this as a facet of the startup environment may help you cope better.

How to develop your personal brand as a potential startup employee

David tells us that you can't just wait for someone to give you work in a startup. You need to be curious and act on that curiosity. Be proactive; not only with work that falls directly under your title but any work. People who thrive in less structured environments seek out opportunities, take responsibilities and work through them, even when the tasks take them beyond their discipline. David alludes to the fact that you've got to love the problem-solving process. If you do, startups will give you a real rush.

As well as being proactive, David thinks that potential startup employees have to develop a personal brand that reflects their skills, values and personality. A strong personal brand can help you stand out in the competitive startup job market and increase your chances of success.

Here are a few tips for developing your personal brand as a potential startup employee:

Define your unique value propositions

What makes you unique as a potential employee? What skills and experiences do you bring to the table? Answering these questions will help you identify your strengths and communicate them effectively to potential employers.

Build your online presence

In today's digital age, it’s important to have a strong online presence. This includes creating a professional LinkedIn profile, maintaining a personal website or blog, and being active on social media. These platforms can be great ways to showcase your skills and personality to potential employers.

Network with industry professionals

Networking is an important part of building your personal brand. Attend industry events, join business forums, and reach out to professionals in your field to build relationships and make connections.

Participate in relevant projects and activities

This can be a great way to build your skills and demonstrate your value to potential employers. Consider joining a team or volunteering for a project that aligns with your career goals.

Seek out mentorship

A mentor can be a valuable resource as you develop your personal brand. Consider seeking out a mentor who can offer guidance and support as you build your career.

Overall, there are many factors to consider before joining a startup. Take your time to carefully research the company and its team, understand the business model and culture, and consider the level of risk you’re willing to take.