Why you should consider working for a startup
Are you beginning to explore the job market as a recent graduate, or are you torn between a solid offer from a well known, established company and a riskier but more exciting offer from a plucky startup? To help you understand what working for a startup can do for you and your, we’ve created a handy guide to the pros and cons of working for a startup!
What is a startup?
Startups are new businesses that aim to offer a new product or service, or an existing service in a way that disrupts and innovates the current market. They are typically small and reliant on funding from the founders themselves and later from outside investors and lenders. Working for a startup can be exciting, challenging and hugely rewarding. There are many benefits such as flexibility, variety, autonomy, and the chance to learn about the ins-and-outs of business at the ground level. But there is an element of risk too that you should be aware of.
The pros of working for a startup
We’ve put together a list of pros (and some cons) of working for a startup. Let’s begin with the benefits of working for a startup:
- You can develop your career faster
Startups need to grow fast to succeed. Getting in early and showing off your talent can be a fast-track to internal promotion. You’ll be encouraged to take ownership of your projects, see your ideas implemented and drive progress, all of which will look great on your CV!
Example: Hibob are an international HR tech startup based in London, New York, Sydney, Amsterdam, and Tel Aviv. They place huge emphasis on their employees’ career growth and development prospects. Their website is full of videos and interviews with their current staff explaining how Hibob has supported them to take on new roles and responsibilities.
- You can add to your skills
Opportunities for learning and growth in a startup are huge. Small teams work closely together with founders and employees at all levels pitch in on tasks, so you have plenty of opportunities to learn new skills from the best. Startups also place greater emphasis on learning and development in their benefits packages.
Example: Marshmallow are an insurance startup offering affordable car insurance you can control from your smartphone. Like many current startups they offer a personal learning budget for their employees to spend on their own training and upskilling. They also offer a weekly book club and learning sessions for employees to get involved with in the office as well as offering two paid learning days for employees to use to further their skills. Sweet!
- There are often better benefits
Many startups are founded by people who have been dissatisfied with traditional working practices. To attract the best talent, they know they need to offer something different that their employees actually want. Benefits are also often tailored to the industry.
Example: Impala are a London-based travel startup offering a new way for hotels and room sellers to attract guests and reach new markets. They offer their employees a frankly impressive benefits package that is wholly flexible. It’s clear they’ve asked their employees what benefits work best for them. Not only do they offer monthly wellness, social and lifestyle stipends, they also offer a personal development budget, three different workplace allowances tailored to their employees’ preferred way of working and £750 per annum for their staff and their staff’s families to visit you or for you to take a trip together – pretty fitting for a travel company!
- You can really make a difference
Startups aim to introduce new products or innovate in existing markets to solve specific consumer problems. This means there are plenty of opportunities to work for companies with meaningful missions and making a real difference with your work.
Example: Infogrid are a tech startup with a meaningful mission to make buildings more sustainable through the Internet of Things. They use AI to reduce the carbon footprint of large-scale office and residential buildings.It's this mission that dominates its employees’ reviews on Glassdoor. Meaningful work that solves a genuine problem and, what’s more, they practice what they preach.
- You will have more fun!
Unlike traditional organisations, startups offer a unique atmosphere. Because they are disrupting and innovating in one sphere this often carries over into their working practices. They hire the best and trust you to get your work done. Meaning there is space for fun and autonomy alongside hard work.
Example: Butternut Box are a dog food startup that aims to offer healthy, nutritious, fresh dog food delivered right to customers’ doors – and paws! They are also often cited by their employees as the best company they’ve ever worked for. Not only do they offer plenty of benefits such as flexible working, free counselling, and free dog food for employees’ dogs, but they also pride themselves on a family atmosphere with space for plenty of fun. Dogs in the office, dinosaur dress-up days and regular socials. At the right place, working for a startup can be the most fun you’ve ever had in the office.
Some startup challenges to consider
However, there are some aspects about working at a startup which you might want to consider before you jump in to working for one. These include:
- Heavy workloads and longer hours
Startups are generally made up of smaller teams which means that each employee has more responsibility on their shoulders. For some people this is a benefit but a heavy workload and longer hours with little respite can lead to workplace stress and higher levels of burnout.
- Lack of job security
60% of startups fail within their first three years and tech startups are even more susceptible to failure with 63% failing in the first three years. This means that working for a startup, especially a brand new one, is a big risk to job stability and security.
- Steep learning curve
Smaller teams mean you’ll likely be asked to take on tasks that you have little or no experience in. Only having two developers might mean needing to learn about SEO or web development at short notice or having to pitch in with writing marketing copy. This can be a challenge but can ultimately be rewarding.
Find your next startup role with Energize!
If working for a tech startup sounds like the perfect environment for you then we can help! Energize provides a tailored candidate experience, whether you are looking for a graduate role or a senior position and can support and guide you throughout your job search. Contact one of our expert consultants and find your perfect role, today!