The idea of a new venture at a start-up can be exciting and attractive. From flexible hours to travelling to exotic locations, career advancement to sheer excitement, there are certainly many potential up-sides.
In this blog, I want to chat about some of the things I've learned working for start-ups. I'll share some insight into some of the pros and cons of working in this environment. While I've worked in recruitment, education and careers, I'm not a careers advisor. Always do your own research about any career opportunity.
1. Beware toxicity
Start-ups are often filled with passionate, bright people, which is amazing and something to be embraced. I'm a big believer that start-ups are more likely to succeed when their team lead balanced lives where non-work activities, rest and holiday are valued, encouraged and celebrated.
Watch out for environments where people are simply expected to work extra hours or avoid holidays. Unbridled enthusiasm can turn sour without the right leadership, leaving its people drained, demotivated and pressured to overwork.
A balanced environment ensures that people can remain motivated and healthy, and will ultimately lead to a better workplace experience and success for everyone.
Another thing to bear in mind is that when dealing with the stress of cash flow, issues around equality and inclusion are rarely front of mind at start-ups. This presents both a problem and an opportunity – if this is something you know about, it's the ideal moment to get everyone started on the right foot, as inclusion is hard to retro-fit. On the other hand, it can be difficult to get resource allocated for equity-related activities.
What to look for: Employees are trusted to manage their own time and encouraged to take both breaks and holidays.
2. Risky business
The reality is that 90% of start-ups fail. Uncertainty and insecurity are just part of the game.
As far as possible, you want transparency about how much money is in the bank, how long it's going to last and where money is meant to be coming from in the future.
I've been in a start-up that was forced by investors to lay off half of its team, just like that. It was unbelievably tough for those who had to find new work. And it was tough for those left behind. That's a very ordinary experience for people who work in start-ups, simply because so many struggle or fail.
Start-ups also tend to have limited resources and often can't offer the same benefits as larger companies. Depending on the industry, opportunities to progress financially might be limited. Start-ups will also tend to have little to nothing in place to ensure fair and equal pay, and are likely to have non-existent, poor or statutory minimum policies for things like parental leave. Start-ups often offer equity – a partial stake in the company – sometimes in lieu of some or all pay. Always understand the structure and terms of the equity.
What to look for: Find out as much as you can about how the company is funded and where it plans to get money from. Know your risk tolerance and ensure your move makes sense (emotionally and financially).
3. Pipe dream?
The marketing and messaging around a product or service can sometimes be a world away from the reality. On the other hand, a team might have a richly-featured product, but no marketing or sales plan. It isn't necessarily a bad thing if the product isn't where it needs to be! What matters is that you're confident in the plan to get to the target.
Do research and ask questions to establish both the state of product and an understanding of their sales and marketing operations – or plans to get there and expand them.
Start-up teams have a tendency to be somewhat optimistic about things like the planned capabilities of their product and timelines for delivery. You need to know the actual state of the business and the plan for developing it before making any commitments.
What to look for: The company has a clear vision for their product and business, and a realistic plan to get there.
4. Embrace the chaos
Being resilient to rapid-change is a must-have trait for start-up life.
The unpredictability requires you to be agile and ready to pivot at a moment's notice. Pivots are real things at start-ups, and you can come back one day to the decision to scrap the product. (This has happened to me.)
You must prioritize ruthlessly, as it's easy to put in high-quality work that isn't focussed in the right places. Perfection is not the end goal here - shipping quickly is key.
What to look for: The company has a plan, but there's evidence they are reactive to change and willing to adapt or pivot if they have to.
5. Dirty hands, many hats
Life in a start-up is a unique experience that can be vastly different from the traditional corporate environment. Don't expect a formal HR department, onboarding procedures and employee handbook.
You'll likely find yourself taking on roles beyond your job description as the team strive to move projects forward.
I spent five years working in one start-up. My job title said "marketing". In reality, that was everything from writing code, HR policies and award applications to sitting on the floor boxing up branded ciders for three days straight.
The bottom line is that working at start-ups can be an extraordinary opportunity to learn fast, and if you get it right, catapult your career.
What to look for: Hat juggling starts to hurt start-ups when people become unfocussed on their primary role. Try to understand how much hat juggling is happening already and decide whether it might point to a potential problem.
6. The mission
Not everybody has the privilege of being able to choose where they work. If you do have that privilege, being aligned with the mission, vision, and values of any business you work at makes a difference.
But at a start-up, alignment is essential. If the relationship is going to work, you need to invested in the success of the business, and that usually means that you need to believe in and be passionate about what it's trying to do.
I'll also say that start-ups aren't known for inclusive or particularly thoughtful hiring practices. As a result of the pressure to turn results fast, start-ups often hire people that they view as "passionate". In the worse cases, this can discriminate against certain groups of people, for example autistic people / people with autism. Hopefully this will improve with time as good practice trickles into the general awareness, though I'm not overly optimistic about that.
What to look for: Firstly, the team can clearly articulate their mission and vision – it's a sign they know their direction and have something to plan towards. Secondly, you need to find it compelling if you're to work there. Finally, their actions should match the values they preach.
Wrapping up
At their best, start-ups can feel like thrilling journeys of discovery where everyone revels in shared success. At their worst, working at a start-up can be chaotic and leave you frazzled and – the hard truth is – unemployed.
If and when you decide to join a start-up, be aware of the risks and to do your research before you decide to work for one. Be prepared for the best and worst of times, and be ready for whatever lies ahead.