Shall I work in a Start-up?

Recently, I've received a few queries from students, both graduate and master's, facing the classic dilemma of choosing between a startup or an established organisation. Even experienced individuals who are thinking of switching their career paths, may find themselves grappling with this question.

Almost two and half years back, when I was fresh from college, I also had this question and two factors played a pivotal role in making my decision:

1. Asking myself what I truly wanted. and,

2. Seeking guidance from seniors and mentors.

However, answering the first question and making an informed decision requires having relevant information at your disposal. Here, I attempt to outline key points that may aid in your decision-making process.

Working in start-ups will have the following:

1. Ambiguity, Chaos, Uncertainty: Working in a startup entails navigating through ambiguity and chaos with less predictability. It's akin to walking in a fog where visibility is limited. You take a few steps forward, and the next few more steps will be visible. If you thrive in uncertainty and chaos, the startup environment might be suitable for you.
2. Less Structure, Processes, and Policies: Life on Earth began with a single cell, devoid of complexity, in its most rudimentary form. Similarly, in a startup, the structure is often very simple. It may be flat, follow holacracy principles, or be predominantly functional, without any traces of a Matrix or Divisional form. (These are common Org Structures). Processes and policies are also initially absent, often prepared on an ad hoc basis in the early stages.
3. Culture: Start-up culture is different from established one. A startup gives you the flexibility and autonomy to perform your work. But, as Uncle Ben (originally Voltaire) said, with great power comes greater responsibility. You are also held liable for the work you do. You will get the credit for the work you do, but also be responsible for something that goes wrong. You will experience less hierarchy, and sometimes, or rather most of the time, you have to stretch overboard.
4. Wearing Multiple Hats: Working in a startup often requires wearing multiple hats. For instance, in HR, you might be responsible for hiring, payroll, performance management, and more. If you can handle such versatility, a startup might be the right fit.
5. Risk: Startups inherently carry more risk, with an average failure rate of 90%. Job security is less guaranteed, and layoffs may be a resort if the business can't survive. However, recent years have shown that even established companies are not immune to such challenges.
6. Immense Learning Opportunity and Exposure: One thing a startup can surely provide you is that it will force you to think from first principles. Also, the amount of learning is immense, but it is a function of your ability and willingness. For example, when I joined my current company, I did not know anything about UAE and US employment laws, health insurance, work permits, visa requirements, and many other things. But now, with the exposure and experience, everything seems fun.
7. Visible Impact of Your Work: Due to their lean size, startups offer the advantage of a visible impact from your contributions. Your work can directly influence the company's trajectory.
8. ESOPs and Windfall Gain: Joining a startup provides the potential for significant financial rewards through Employee Stock Ownership Plans (ESOPs) if the company succeeds.

In conclusion, the choice between a startup and an established company is deeply personal. Assessing your preferences, risk tolerance, and career goals is crucial. Remember that both options offer unique experiences and opportunities for growth.