Is working at a startup risky? No.

http://blog.thinkful.com/post/41945187257/is-working-at-a-startup-risky

by darrellsilver • 13 years ago

8 3 13 years ago

blog.thinkful.com

cheald2• 13 years ago

What a silly article. Citing length-of-employment numbers doesn't prove anything. There is a world of difference between upgrading your job from one company to another or pursuing a different line of work of your own volition, and losing your source of sustenance because your company has no money. Even if 100% of employment changes in large companies were due to involuntary loss of the job, it would still be less risky than startups, because 3.4 years is a hell of a long time to be able to survive in a cash-poor startup.

A startup means removing yourself from an established cashflow, reliable funding, and steady paychecks. This is risky, especially if you have dependents.

If startups weren't risky, everyone would do them. The potential reward is massively larger than an 8-to-5 at Megacorp. If the risk of a startup was the same as being in an established company, then literally nobody of any intelligence whatsoever would work at a large company, because the potential payoff for a startup is orders of magnitude higher.

The idea that startups aren't risky (or that corporate jobs are just as risky) is flat-out wrong, and is a dangerous thing to be telling to people who don't otherwise know better.

Startups are wonderful. They cause massive, explosive personal growth and have the potential for tremendous financial upside. They're also exceptionally risky, which is a large part of the reason that the unfunded startup is primarily the young person's game - once you have real-life responsibilities like a spouse, children, a house payment, etc, it may not be an acceptable one, unless you're prepared to sacrifice your house and your family's quality of life in a worst-case scenario.

darrellsilver• 13 years ago

Definitely agree with some of that. Telling people who "don't know otherwise better" to do most anything is dangerous, let alone something as extraordinary as changing their career.

My point is: For many, the most dangerous attitude to have about a so-called "steady" pay check is that it will remain steady, and that they'll remain engaged in their work for years.

For many people, especially those early in their career, the biggest risk of all is to not try new jobs, roles and challenges. Basically, becoming prematurely specialized.

Startups, especially, are great at solving that risk, and thus lowering career risk overall.

cheald2• 13 years ago

There's a large difference between "startups are not risky" and "corporate jobs are not risk-free". I don't know that I'd call being "prematurely specialized" a risk; it might reduce your total career potential, but if it keeps food on the table and a roof over your head, that might be fine for some people.

No job is risk-free, but startups are inherently risky, and moreso than most other forms of employment.

Is working at a startup risky? No.

Related Stories