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Home » Research » Pros and Cons of Joining a Startup Company
pros and cons of working in a start up company
Career & Jobs

Pros and Cons of Joining a Startup Company

L K Monu Borkala
Last updated: 2022/07/08 at 9:40 AM
L K Monu Borkala  - Content Writer Published July 8, 2022
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Summary

  • Benefits of joining a startup company
  • Risks of working for a startup company

Today, more often than before, we hear the term ‘startup company.’ More and more young professionals are joining startups to fulfill their dreams.

So, is it the best decision to make? Whether you are a fresh graduate or an experienced professional, joining a startup firm has its own advantages and disadvantages.

Let’s detail out the pros and cons of joining a startup so that you can make a more informed choice while deciding to join a startup or not.

We will first list out the benefits of joining a startup before we list out the risks of working for a startup company.

Advantages or Benefits of Joining a Startup

1. Casual Working Environment

Startup companies usually have a casual working environment with no dress code format or strict rules. This makes it a flexible option for working professionals.

Especially for experienced professionals who were drained from previous work experience where codes and formalities were compulsorily to be followed.

A casual working environment makes it less stringent and allows employees to be more interactive and friendly with colleagues.

2. Greater Responsibility

Responsibility

One of the benefits of joining a startup is that working for a startup gives you more responsibility. Startup companies are smaller in size when compared to established companies.

When the size of the company is smaller, there will be fewer employees. The onus is on these few employees to take the company forward.

3. Sharp Learning Curve

With greater responsibility comes more work and in turn, you learn more with the added responsibility. In a startup, you may be a single person performing various job profiles.

You might be the manager while also performing the role of a sales executive. In other words, you might be the Jack of all trades. While donning these various roles, you learn immensely from all your job profiles.

4. More Like a Family

The employees of a startup company are more like a family. This is because startups are small in size with fewer employees who interact more on a basic level. Unlike large firms, where one team may not be in touch with other teams in the same office.

5. Personal Touch with Customers

Smaller startup firms are usually directly in touch with their customers. As the firm is a startup, the number of customers may be small when compared to larger firms.

It is easier for startup companies to keep in personal touch with all their customers, thereby getting direct feedback from customers.

6. Flexible Hours

The newer startup companies are flexible when it comes to working hours. Their belief is that as long as the work gets done, the number of hours you put in does not matter.

Therefore, working for a startup company can give you flexible working hours, unlike a larger firm where you may have fixed working hours.

7. Minimum Supervision

As the number of employees in a start is small, there might not be much hierarchy in a startup company. Without much hierarchy, there might be minimum or no supervision of the work of employees.

As mentioned above, as long as the work gets done, there might not be a need for supervision or management of employees.

So, one of the benefits of joining a startup is that you might not have too much supervision and will be allowed to work more freely than if you join a larger established company.

8. Individual Recognition

In a startup company, you are recognized more for your work unlike in an established company where team effort is more recognized rather than individual recognition.

9. Larger Network Base

network

Another benefit of joining a startup is that it allows you to freely network with people around you.

In larger established firms it is usually the top management that networks with others, while the fresh graduates and employees only perform their job profile duties.

Risks of Working for A Startup Company

We have learnt of the innumerable startup companies, let’s now look at the risks of working for a startup company.

1. Risk of Failure

Every startup company is at risk of failure. Since it is a startup, you will not know if the company’s goals will be achieved or not. Startups have a high risk of failing.

2. Low Returns

The first few years of every startup may see low returns. Startups may not make profits in the first few years of their establishment, but this does not mean that the startup can be written off. Startups usually make profits after several years of operation.

3. Customer’s Preference

Customers usually prefer products or services they recognise rather than choosing an entirely new product or service in the market. 71% of consumers more likely to buy a product or service from a name they recognise. (globalbankingandfinance.com). This makes it tough for startups to attract customers.

4. No Team Organization

One of the risks of joining a startup company is that there is no organization in the team. Unlike established firms that have a management level, administrative level, and smaller teams in the hierarchy. Startup companies do not have a definite framework when it comes to their team of employees.

5. Stressful

stressed employee

Working for a startup can be very stressful at times because of the urge to achieve success in a shorter period of time.

Many times, startups require employees to work overtime to achieve goals. Startup companies need to achieve goals in a shooter turnover time in order to compete with the bigwigs.

6. No Job Security

As startup companies have a higher chance of allure, it also means that there is less job security in startup companies. If the startup company is wound up, it means that you remain out of a job too.

7. Limited Resources

Another risk of joining a startup is the resources the company may lack. The company may have little capital to invest when compared to bigger companies.

Startups have to work within limited budgets. As an employee, you may not be able to raise your full potential because of the lack of resources in the company.

8. Lack of Professionalism

Mentioned as one of the benefits of joining a startup, the casual nature of startups can also be a disadvantage for many who prefer a more formal working environment.

Startups and India

Startup companies are gaining popularity in India over the past few years. Government initiatives in this regard have led to the establishment of several startup companies in the country.

Startup India, a Government of India initiative is a campaign to promote startup companies in the country. The Government encourages startup companies through various schemes and policies.

Conclusion

Looking at these pros and cons of joining a startup, you can now decide for yourself, what kind of environment will work best for you.

While there is no clear-cut right and wrong in this decision. It depends on the kind of working environment you wish to experience as a fresher or a professional.

Wherever your choice, be prepared to put in hours of hard work because only hard work and perseverance can get you soaring through your career.

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L K Monu Borkala July 8, 2022
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