I have worked for a few startup companies, including SQL Server Central. Each has been a different experience, and I learned a lot at each stop. However, I’m not sure I’d want to go through that process again at my age. I was thinking about the challenges and the excitement of being at a startup while reading about the founding of Reddit. The post doesn’t go a lot into the technical details or the working life, but it is an interesting read from a VC investor.
I also found this post on Choosing Startup Life, which talks about what the author thinks about before trying to start a company. He compares this with life in a Big Tech company, which relates to lots of companies, in technology or not. The main differences are lower salaries, less infrastructure, lots of work, and upside in a startup. Big companies have higher salaries and more perks, less stress and responsibility, and not a lot of context-switching. In general, that’s been true in my experience, though in bigger companies that didn’t think they were software companies, I sometimes could end up with a lot of context-switching.
When you work in a startup, I hope you have some passion or belief in what the company is building. I think that’s what drives a lot of Kickstarter/Indiegogo projects. Someone wants to start a business to do x and they believe in x. It’s important to do that since you are likely to need to work extra hours. Startups often are cash-strapped, so they don’t have a lot of services and infrastructure and depend on employees to work above and beyond their main job. They also are in a hurry to get cash, so they want to complete their work sooner, which means more hours per week. Not all are like this, and once there is some investment capital, hours can ease a bit, but investors want their return, so this isn’t a slow-paced, relaxed atmosphere.
There isn’t a lot of security. I’ve had startups fail under me where we didn’t have enough money to make payroll. I’ve had them sold in an instant with the new owner deciding to drastically change the employment status for many people. At the same time, I’ve had some jobs that result in unexpected windfalls of money. I haven’t had a company go public yet, but perhaps that will happen at some point.
I think about being in a startup like being in my first apartment in college. Nothing is provided, I don’t even know what I’m missing until I look for it, I keep long hours there, and everyone is responsible for everything. There are also a lot of arguments over who should/needs to/ought to do what.
Is it worth it? I think that the chances of a startup becoming a success can vary. It is important to understand valuations if you are trading away hours of your life on a gamble you’ll make money. Keep an eye on the number of shares offered and the potential value they would have to reach to make a difference in your life. For that matter, make sure you know what a pile of money means for your life. USD$100,000 sounds like a lot if you got a check tomorrow, but how much would that change your life?
If you decide to create a company and take outside investment, make sure you really understand finances.
Startups are exciting, but make sure you like the people working around you. You’ll spend a lot of time with them, and if you don’t enjoy their company, you won’t enjoy your job. Startup life isn’t for everyone, but it can be an exciting chapter in your life.
Steve Jones
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