Working At a Startup: The Benefits and Drawbacks

Working At a Startup: The Benefits and Drawbacks
StartupStockPhotos / Pixabay

Starting or continuing your career at a startup company can be exciting. You’re on the cutting edge of innovation in many cases. Competition is fierce, and creativity is rewarded. If you want to work at a startup, here’s what you can expect before you go to the interview.

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Working at a Startup: The Benefits

There are many perks of taking a job at a startup. Company culture is still in the early stages of development, and many startups have to take extra steps to attract top employees.

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Modern Perks

Startups often have a unique work environment, so working at such a company may be unlike any other firm you've worked at in your career. One big concern is work/ life balance, and startups may be good or bad in this respect. Here is a list of the benefits of working for a new company.

Flexible Working Hours

One thing that attracts many employees to startups is the flexible working hours. Since many such companies take a nontraditional approach to work, it's no surprise that they may allow you to work your job during whatever hours you like.

Working From Home

Another benefit many startups offer is being able to work from home. A variety of tools is available to enable team members to work together remotely, and startups often excel at using them.

Great Benefits

Companies in their early stages must go above and beyond with benefits, so it is quite common to see some additional perks that you don't find at other companies.

Gym and Other Health Facilities

For example, some startups offer memberships to gyms or health facilities. Some of them may even offer fitness centers in their offices.

Employee Discounts and Free Services

Company culture may also include a lot of free services or employee discounts. Some firms offer free meals or drinks to employees. Others may secure attractive discounts that make working for them worthwhile.

Room to Grow

The growth potential of startups is often much greater than that of a company that has been around for a while. They find an innovative way of doing things, and they make it work for them and their customers. Whether you're looking for a career change or just want to find new opportunities in business, there will be plenty of room for growth at new companies.

Truly Entry-Level

Another one of the pros of jobs at startups is the fact that they are truly entry-level positions because the business itself is entry-level. A job is more than just a job because it represents a launchpad from which to give your career a boost.

Working at a Startup: The Drawbacks

Startup life isn't easy even though there are a lot of pros to working at an early-stage startup. The work/ life balance isn't always the best, and since the company is new, many processes are still being worked out. Additionally, a significant number of startups fail. Here are all the cons of working at a new company. Here is a list of the downsides.

Heavy Workload

While it is possible to have a positive work/ life balance, the reality is that expectations are high at startups. Because everything is new, employees have a sizable number of responsibilities, many of which are outside their job description. The work may be extremely rewarding, but there is also a lot of it.

Growing Pains

The team is entirely new, so there are sure to be some growing pains. Like any team, people have to learn how to work together, and when everyone is new, they've got to settle their differences before they can find success while working together.

Job Security

Unfortunately, while there may be opportunities to be had while working at a new business, the money may not be all that great, and your job may not be secure. Because a large number of startups fail, there's no guarantee that your job will still be around in a year.

Inexperienced Leaders

There is often no middle management at startups, which means employees work directly with the entrepreneurs who founded the company and have the best in the business as their mentors. Something everyone should learn is that the management style of startup founders and CEOs varies just as widely as business models.


Is working at a startup worth it?

You've got to have the right attitude to work at startups. Leadership is one of several required skills, no matter what position you have. Employees must be self-starters, and the money won't be great in the early days. There is a constant pressure of performance, but when you do find success, the reward is worth the time it took to get there. You always have the option to leave if the pressure is too much.

Why working for a startup is bad?

You will find the pros and cons of working for startups. You might not be able to meet your goals at new businesses. There is a great deal of responsibility involved because you will probably have to do more than what your job description states. The salary also isn't great in the early days.

How do you survive working at a startup?

You should always ask questions if you don't understand something. Part of the process of learning is asking questions, and job seekers should be prepared to spend more of their time learning on the job.

What are the main upsides of working at a startup?

Some employees have a chance to become investors by earning equity and stock options, depending on the company's salary structure. You'll get the experience you wouldn't get at an already established place. The work environment will be unique, and the opportunities will be immense.

Final Thoughts

Jobs at startups offer excellent growth potential, both in terms of product development and at the employee level. Employers will do much to make it worthwhile for people to come work for them. They know workers have plenty of options, and the responsibility of joining the firm's workforce will be huge. Job seekers will need leadership skills when they interview at such a place. The experience of working at new firms will be unlike that of working at those that have been around for a while. The word on the street is that getting a position with a new firm can be very rewarding.

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Jacob Wolinsky is the founder of, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at) - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
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