Thinking of Working For a Startup?
The term ‘startup’ has become synonymous with innovation and potential. For the right candidate (read - those who like a challenge!), working for these budding companies can offer lots of benefits. Here’s just a quick overview of some of the perks of working for a startup…
Firstly, what is a startup?
Startups are defined as new or growing companies…
Looking to develop a unique product or service, they will have strong growth potential and innovative ideas that bring something new to their respective industry.
Compared to corporations (which focus on tried and tested business methods) startups like to disrupt. They think outside the box to challenge long-standing formulas.
Today some of the best known businesses and brands around began as startups - Netflix, Facebook, AirBnb, Lyft, Octopus Energy, Pod Point and yes, even LinkedIn, and are paragons of how the fresh perspectives within startups can cause big shifts in both culture and commerce.
Of course not every business will skyrocket, and as we have seen recently in the news, redundancies can happen in even the biggest of tech companies
Despite the entrepreneurial vision of deluxe offices and keen investors, in reality the creativity, flexibility and passion of working for a startup is often offset by long hours, job insecurity and financial risk.
But the allure of working for a startup is the potential of many exciting opportunities and vast rewards!
Chasing Unicorns
Credit: Annie Spratt [Unsplash]
Fun fact - after valuing over $1 billion a startup becomes known as a ‘unicorn’, reflecting the fact only a rare 1% of startups reach this milestone.
After $10 billion, the unicorn transforms into a ‘decacorn’ company, and then a ‘hectocorn’ after $100 billion. (After that, who knows!)
Startup health check
Despite having had a rocky few years, the UK startup scene has still been growing exponentially - but how well are new businesses actually doing?
Opportunities abound…
A new company was formed every minute between 2020-2021, reaching a total of 810,316 businesses - the highest number annually in UK history. [UK Companies Register]
12.9% of adults in the UK are involved in a business under 42 months old. [statista.com]
…but success is the exception
In line with the global average, less than 40% of new businesses succeed in the UK. [Startup Genome]
Only 38.4% of UK companies set up in 2016 survived for 5 years. [UK Companies Register].
Passion is key…
Superior team performance doesn’t just require experience - a study of 95 new startup teams in the Netherlands by Harvard Business Review found that shared entrepreneurial passion and strategic vision are just as integral. [Harvard Business Review]
…but numbers count.
Data-platform Beautech ranked clean energy company Britishvolt as the top greentech company in the UK. They have raised £1.78b in equity investment since launching just four years ago. [Beautech]
A few of the perks…
1. Be what you see
When you think about the kind of people who begin startups, they’re often ambitious, creative multi-taskers with passion for their company and cause. They craved the autonomy of entrepreneurism and stepped away from the regular 9-5 to make it happen. They’ve motivated themselves, learnt lessons, and become experts in their field.
The old adage ‘you cannot be what you cannot see’ applies here, so if this sounds like the career you want, you need to go and be around these people.
2. Develop your skills
Most of us have a desire to learn and develop, but different approaches work for different people. A startup may not be for you if you favour the consistency of structured learning such as annual training programmes, but if you enjoy training on the go and the excitement of facing new challenges, this may be your place to thrive.
As they are still establishing themselves, startups are constantly growing and evolving; they will be looking to expand their client base, refine their products, and strengthen their teams, so they are a great place to gain new experience and expand your responsibilities.
3. Innovation and impact
Startups are driven by creativity and problem-solving. Having observed gaps in the market, they are hyper attuned to their industry in the here and now and are looking to make a difference.
This can be a stimulating environment to work in, that provides a sense of purpose and the opportunity to be part of something new and exciting. You may be more likely to be involved in coming up with new ideas and solutions to problems, rather than a cog in a greater machine. It’s not uncommon for startups to offer equity or ownership in the company as part of their employee package.
4. Moving with the times
One of the main reasons long-established businesses fail is their neglect to keep up with a changing world and new workforces. Rather than using processes and systems that work FOR the business, things are done ‘how they’ve always been done’ which causes a stagnant atmosphere where employees have no agency.
Being relatively new, startup companies will be constantly aiming to improve their structures and processes, and so are more likely to offer a more adaptable work environment than larger companies, such as flexible hours and remote working. (As we saw in our last blog which covered recruiting and retaining Gen Z, this is something that employees are increasingly calling for.)
