No matter what stage in your career you are in, whether you’re looking for your first job or have accumulated years of experience, you might face the decision of whether or not you want to go for the job at a startup company or a position at a larger company. Some people ask the question: what does it look like for me if I choose a startup or a later-stage company? Here’s some background information and a few answers to guide your thought process, including current market conditions.
Startups VS LATER-STAGE Company
Startups, as their name suggests, are in their initial stages of operations. Startups are founded by a few entrepreneurs and tend to market one type of product or service. They are also likely to receive funding from private individuals (angel investors) or venture capital firms.
Later Stage companies are more established businesses with sizable employee counts. With multiple departments and products and/or services, their capital structure is more extensive and normally consists of both traditional debt from borrowed money, as well as equity holders who buy shares of stock in public companies. .
Working at a Startup Company
Though there are more risks in choosing a startup, these are a few things to consider if you’re thinking about choosing a position at this type of company. One of the main opportunities that a startup offers is the likelihood of establishing close relationships with everyone you work with, including senior leaders. This promotes a learning environment and gives you access to advice, shadowing, and mentorship that may not be possible in a larger environment.
One of the things that makes startups so attractive is the opportunities to learn and grow in your career quickly. You will have the opportunity to explore your interests, and the chances of uncovering opportunities and moving up in the ranks faster is much higher than in an established company. If your short or long-term career goals are to achieve senior leadership status, startups tend to get you there faster.
Working at a Later-Stage Company
If you’re early in your career or are considering choosing a position at a later-stage company, be prepared for a few things. One common frustration for people who work at large later-stage companies is feeling stuck in their position. It can be hard to receive promotions or move up in the hierarchy as quickly as most would like as there are typically many people in line in front of you vying for the same promotion. Also, given that there are more specialized functions within a larger Company, it can be harder to have direct exposure to other departments or functions should you see yourself wanting a different focus in the future.
However, working at a later-stage company can often offer more security in position, retention, and finances. In addition, having at least one experience at a later stage company can increase the attractiveness of your resume long term.
Layoffs & Market conditions
Since the end of Q1 of the 2022 fiscal year, many companies have laid off employees, the total tallying to over 200,000 layoffs. That being said, it’s important to take a look at what companies are laying off and what companies are hiring.
Many of the later-stage and public companies have gone through layoffs totaling in the thousands. Roles are being deemed unnecessary and eliminated as a result of the market conditions and post-COVID overhiring. However, startups and smaller companies aren’t facing the same issues as many of the later-stage companies. In fact, many of the startups that received funding in 2022 are actively hiring.
Taking market conditions into account, startups are the safer option for the time being if you’re searching for a new job or have experienced a layoff. Recruiting agencies (like RJR Partners) are helping smaller companies and startups scale their teams while they’re actively hiring.
Here are some lists of companies hiring:
Before You Decide
There’s nothing set in stone that says “this is better than that”; your decision should be based on where you think you will thrive. Take market conditions into account while you’re considering your options. If the culture of a startup is appealing to you and you are willing to take on the challenges that a startup can pose, that could be the right choice for you. Though the stability at a later-stage company might be uncertain at the moment, if the structure is appealing to you and you’re not too focused on an in-house promotion, a later-stage company could be the right choice for you.