If you knew there was a 10% success rate for the company you were interested in working for, what decision making criteria would you utilize? According to Failory, 90% of startups fail while “137,000 businesses give birth every day or 50 million per year.” Of course, there’s more to that statistic regarding the industry, geographic location, and customer solutions. There are distinct camps of people choosing to work within or outside a startup. Are you considering joining one?
During my initial consultation with clients, we discuss what pathway they’re considering. Since a majority of my practice includes technology executives, three tracks appear, including transitions from a Fortune 500 to a startup, traversing the other direction from startup to Fortune 500 or moving into a consulting role.
Considerations for Joining
The startup path requires several considerations for my tech executive clients. If you are pondering the startup route, here are six pros and cons I’ve uncovered.
Pros
- Making an Impact: Do you sometimes feel as though you’re trying to boil the ocean vs. making a great cup of coffee when it comes to your job? In a startup environment, typically, you have a significant opportunity to make an impact in strategic direction, vision, and mission if you are on the ground floor of the company’s inception.
- Adrenaline Rush: Do you recall the first time you started something new and experienced those butterflies of excitement? Here’s an outlet for recreating that experience with chartering an unknown course with the next new service or product addressing customer’s needs.
- Upside Potential: Unlike companies who have structured criteria for compensation and promotions, there’s an opportunity, if things are going well, for a quicker ascent to the top in terms of moving into a CXO position with additional pay and responsibility. I’ve yet to meet a client that wanted to downsize their title and role unless they were retiring!
Cons
- Smoke & Mirrors: After 20 years at Global Fortune companies, my husband was excited to accept an offer as a sales executive at an optical technology company whereby he firmly believed in the product potential. Several months into the role, he found an overexuberance in every category from speed to market, cost of manufacturing, cash flow requirements, and funding activities. It takes significant effort to build a company from ground zero, and you won’t necessarily be privy before joining. So, make sure to ask critical questions regarding financials, targets, and milestones before accepting a role.
- Executive Management: In the past year, I’ve had several clients working at startups that imploded. Yes, they became unemployed. One recurring theme was the original inventor had great ideas but was a less than stellar CEO. Why? In these situations, the owner had zero management leadership experience and, unfortunately, didn’t hire an executive team to bring balance to optimize financial, operations, and sales functions.
- Work-Life Unbalance: In a smaller organization, there’s a tendency to wear many hats, which might be your bailiwick. On the flip side, initiating new processes and building sales funnels can make for long hours into the nights and weekends. I’ve been at three startups and felt I was always thinking about optimization. For some, that might be exciting, but it may not be your cup of tea.
Startup Resources
If you’re curious about what’s available globally or locally in Seattle, there are many resources to begin your quest. If you’re intrigued, my recommendation is to conduct your due diligence and reach out to a founder to have an informational discussion.
- AngelList: For tech and startup jobs
- Built in Seattle: Hub for Seattle startups and tech jobs
- Startup Ranking: Discover, rank and prospect startups worldwide
Would love to hear your thoughts about your startup experience. The good, the bad, and the ugly.
Land your dream job. You deserve it!
