Should you leave the stability of a corporate job to join a start up?

Making the decision to join a startup can be challenging. Although there is something very attractive about being part of a young and ever changing business, there are considerable risks involved. To help you decide if it's the right step for you, here are some pros and cons to consider.

Are you a builder?

I've been asked this question many times. It's not an easy decision, especially if you're used to a stable job with regular paychecks. The first thing to think about is why you want to join a startup. If it's just because it's cool and you want to be part of something new, that's not really a good reason.

Startups are very hard work and they don't always succeed. You will be expected to work long hours, sometimes under pressure and with little reward for your efforts. Many start ups fail because they run out of cash before they have time to build a product that people will buy.

But if you're motivated by the prospect of working on something new and exciting, where your contribution could make all the difference between success or failure then joining a startup could be great fun - but there are also many risks involved.

What are the downsides?

You should consider the downsides of joining an early stage startup: You may not get much money. The salary for early stage startups is usually low, or even non-existent. In return, you get a share in the company. That's how you get rich later on. If you're interested in making money now and later as well, this could be a good option for you.

The company might not survive. In most cases, there will be no guarantee that the startup will be successful. The risk that your investment will be lost is high. This means that if you join an early stage startup, you need to be sure that it has enough potential to succeed.

You'll have less experience than everyone else. If your job requires a lot of skills or knowledge, then it might be difficult for you to find another position with similar requirements after leaving your current job (unless it's a very large company). It's important to think about this before deciding whether or not to leave your current job for an early stage startup!

Can you handle the risk?

The answer to this question depends on your situation. If you’re a young professional who needs to earn money but doesn’t have any family obligations, then it makes sense to join an early stage startup. Otherwise, you should carefully evaluate the risks involved in joining a start up and make an informed decision.

The first thing you need to know is that there are no guarantees when it comes to startups. You may be tempted by the idea of making millions in just a few years, but that’s not going to happen. The reality is that most people who join startups leave within five years because they don't get rich quick enough or because they don't like the hours (or both).

Can you live with uncertainty?

Here’s the thing. Working at a start up is risky and uncertain. Not just for the company, but for you as well. You might be working on something that’s going nowhere. You might be stuck in an office with no windows and a boss who wants to micro-manage you to death.

You might be working insane hours with little or no overtime pay. Or maybe you'll join a company that's growing quickly and has ambitious plans to change the world - only to see it fail miserably because it ran out of cash before it could fulfill its potential. If you can live with that uncertainty, then yes, it’s worth considering joining an early stage startup.

The benefits can be significant: You’ll learn more than you ever would in a corporate job - on everything from how to build products and run companies to how to manage people and handle difficult situations. You’ll learn what it takes to create value - which is something that most people never figure out until they retire!

You may get rich (or at least make enough money) so that your kids will never need help paying off their student loans!

In a nutshell

The answer, though, is clearly yes – but it depends on what kind of early stage startup you join. Plenty of startups fail or plateau at a point where it's better to leave for greener pastures than to stick around and lose more time; in those cases, the value of a strong corporate job isn't the stability or the paycheck but the fact that you have a place to go back to when things go south.

The flip side is that if you can join a company at a time when it rapidly expanding or, better still, about to be acquired by another company; if you're able to play an instrumental part in launching a truly innovative product or services; and if your new role provides greater opportunities for advancement than your current position both because of your new responsibilities and because you'll be able to ask for what you want (and get more easily), then it makes sense to take the plunge.