We’ve all been there - the long hours refining cashflow forecasts, perfecting the business plan,...
Are you considering a leap into the start-up world? Eager to break free from the constraints of big corporate environments? You may have heard enthusiastic encouragement from some and cautious warnings from others. But if you haven’t found yourself awake at night, pondering the risks and challenges of leaving behind a well-established, cushy corporate setup, you may not be fully prepared.
It's important to approach this decision with your eyes wide open. Think about your current routine - perhaps you start your day with a gym session funded by your employer, followed by coffee from your in-house barista. Working for a start-up may mean those perks become a distant memory. So, here’s some insight from someone who has been through this transition more than once.
What qualifies me to speak on this?
For over 25 years, I’ve worked with start-ups across sectors including technology, professional services, and retail, from Chicago to Venice. I absolutely thrive on partnering with start-ups during their hiring phases. The process is exhilarating - there’s nothing quite like sitting down to map out the ethos of a new business, defining its culture, brand, and onboarding strategy. It’s immensely rewarding work for a recruiter. But this blog isn’t about me - it’s about you.
Start-Ups: Not for Everyone
The truth is, working in a start-up isn’t for everyone. Research by CB Insights in 2018 found that one of the top three reasons start-ups fail is poor hiring strategies. I’ve explored that issue in detail in a separate article, The Critical Role of Recruitment in Building a Successful Start-Up Team. But for now, let’s focus on whether joining a start-up is the right move for you.
I have personal experience to draw from, having launched three start-ups myself with varying degrees of success and failure. I’ve also worked for three start-ups, gaining a perspective that’s a little less frantic. But here’s one thing I know for sure: neither option is for everyone, and both come with considerable risk. No matter the source, statistics show that around 90% of start-ups will eventually fail. It’s a tough world, and even well-funded start-ups aren’t immune. I know firsthand - my start-up in Bahrain collapsed during the 2008 financial crisis when major banks in the Middle East unexpectedly failed, cancelling contracts and leaving invoices unpaid.
If something can go wrong, it probably will - usually at the worst possible moment. Start-ups are like children: they require constant attention, care, and nurturing, with inevitable teething problems and tantrums along the way.
Here are some of the good, the bad, and the ugly aspects of working for start-ups, based on my own experiences.
1. Job Titles Often Mean Very Little
In the start-up world, impressive job titles can be misleading. You might come across profiles on LinkedIn showcasing impressive titles, but a deeper dive reveals these "Global Heads of International Partnerships" have less than two years of B2B sales experience. In reality, titles hold little weight in start-ups. It’s an all-hands-on-deck environment, and you might find yourself running to grab coffee for visitors as often as you’re closing high-value deals. When the printer runs out of ink or the internet bill needs paying, you’ll be the one sorting it out - possibly out of your own pocket.
2. Stay Humble, At Least for a While
It’s tempting to bask in the glory of your new, high-powered title, but it’s wise to stay grounded. In the early days, there will be challenges - highs and lows, moments of doubt, and even thoughts of resignation. If you maintain a level head, your friends and family will be there to support you through the rough patches. You’re likely to need that support, along with the occasional evening spent unwinding with a bottle of wine or a good whisky.
3. Forget the 9-to-5
Start-ups are rarely predictable, especially once you’ve moved beyond the initial stop-and-start phase. At times, you’ll find yourself working through weekends, handling urgent crises or securing clients late into the night. In a start-up, you wear many hats - skills you haven’t used in years will need to be dusted off, and new ones developed on the fly. While this can be exhausting, it will ultimately make you a more well-rounded professional.
4. Dig Deep and Get Resourceful
Working in a start-up is a crash course in business. You’ll learn about legal compliance, marketing, HR, and much more - often on the go. Every day will bring new knowledge, and while it can be overwhelming, it’s also highly rewarding. However, it’s important not to get bogged down in the minutiae. Stick to the tasks that drive revenue and delegate less critical work where possible. Avoid the trap of wasting weeks on branding or website design when your focus should be on activities that generate income.
5. Manage Your Expectations About Rewards
Start-ups change fast. What begins as a founder-led venture may transform into a VC-backed operation in a matter of months. Don’t be surprised if initial promises about equity or buy-ins evolve as the business seeks additional funding. It’s not that anyone sets out to mislead you, but circumstances shift quickly. If you’re joining a start-up purely for the financial rewards, you may need to rethink. The odds of hitting the jackpot are slim. Instead, view your time in a start-up as an opportunity to grow professionally, acquire new skills, and become more resilient.
While the financial payoff might not be immediate, the experience will make you a stronger, more capable employee. And who knows? You might just emerge from the start-up world with a wealth of knowledge - and maybe a few battle scars - but better prepared for whatever comes next.
