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You might have a preconceived notion of a startup; kids working in a garage, staying up all night coding, and constantly struggling with derailed plans and egotistical characters. I blame the show Silicon Valley.
The truth is that startups are all different, depending on whether they’re B2B or B2C, whether they have product-led sales versus lengthy high-touch sales cycles, and whether the target audience is conservative or innovative. Additionally, culture depends on the founders and funding stage.
Yes, there’s likely to be more ambiguity, a faster pace, and far fewer processes. But there are also more opportunities to learn, closer collaboration with your teammates and a chance to help build something.
Let’s look at how startups differ from corporations and what traits you’ll need to succeed and even enjoy working in one.
What is a startup?
First off, what exactly is a startup? You might be wondering:
- Is it just a small business?
- Does the way it's financed matter?
- Are they only software companies, or can other business types be startups?
- When does a startup stop being a startup?
Startups often begin with bootstrapping, where founders use personal savings or support from friends and family to create a minimum viable product. To scale, they seek venture capital (VC) funding, which happens in stages:
- Seed Funding – The first official investment for developing the product, used to hire early employees, create a valuable product and determine product market fit.
- Series A, B, and C – Each round helps the company grow, create repeatable go-to-market strategies, refine operations, and expand into new markets.
- Exit Strategy – After Series C, the company may aim for profitability, seek more funding, or pursue an exit, such as an IPO (going public) or an acquisition by a larger company.
A small business prioritizes stability and profitability, typically serving a local or niche market without aggressive expansion plans. Think franchises, Etsy stores, private coaching or consulting businesses. Whereas startups focus on rapid growth and disrupting existing industries or processes.
Finally, startups can exist in any industry, from healthcare to taxis, insurance or the food industry. You may be familiar with Liquid Death. The company released its canned water in 2019 when it received Seed funding. It has gone on to raise hundreds of millions and, in 2024, was valued at over $1 billion.
How startups differ from the corporate world
Startups differ from larger corporations and public companies because they have less established processes, fewer resources and are maniacally focused on growth. Here are some key differences and their potential benefits and drawbacks.
Things move quickly
You won’t always have enough time to perfect your work. Product development might be faster, and with rapid feature releases, marketing plans will shift. You’ll constantly be evaluating whether you’re selling to the right audience or working on the right thing. At the same time, competitors are hot on your heels and can derail sales plans. As a result, you’ll need to regularly communicate new features to customers and prospects, update your messaging and potentially move on to a new project before fully wrapping up the last one.
Pros: You’ll get a lot done and feel really accomplished.
Cons: It can sometimes feel overwhelming as you’re juggling many different things.
Less process
When a company direction is still being established, there typically won’t be set processes or systems. Because of the fast pace, you might have to get used to doing things on the fly, experimenting and figuring things out as you go along. However, this doesn’t mean you can’t set up processes yourself. At an early stage, when you’re in the weeds with everything, it’s worthwhile to organize materials and document the work you’re doing to set up the company to become more process-driven and strategic in the future.
Pros: You can do things faster and don’t have to go through layers of bureaucracy.
Cons: You might have to figure out how to do things as you go along.
Limited resources
You'll have limited resources at a smaller company. That means fewer people, fewer tools and lower budgets. When it comes to marketing, it means being scrappy and experimental. Finding new cost-effective tools can be fun as you can test and research emerging AI tools. When you do get a budget, you can implement the latest tools rather than be stuck with legacy software. There's also a focus on finding efficiencies as you figure out ways to do things with fewer people, whether using AI or working cross-functionally.
Pros: You’ll get to decide which tools to use and often use more modern systems. Additionally, you’ll learn quickly as you potentially take on projects outside your core role.
Cons: You won’t get to run flashy marketing campaigns, attend large industry events or rely on software. HR and training might also be limited.
Changing direction
Startups frequently change direction and adjust their goals. The company may decide to target large enterprises instead of small businesses before realizing its product needs reconfiguring. Or else a product you were preparing marketing materials for a launch suddenly gets scrapped because the testing didn’t go as planned.
Another big change agent is growth. As the organization gets to the next funding stage, it'll invest in adding people, changing the culture and team structure. Similarly, there may also be a workforce reduction, creating more pressure on those left. All these things could impact your role and workload.
Pros: You're less likely to get bored as there'll always be something new to learn.
Cons: Constant change can be disorienting or frustrating, especially when your hard work gets scrapped.
Roles and responsibilities aren’t crystal clear
Most likely, you’ll end up doing a lot more than your job title. At a startup, one person might be responsible for messaging, content creation, sales enablement and sharing product updates with customers. Whereas at a much larger company, one person will be focused on each of those things individually.
Building closer connections with your teammates and getting involved in projects outside your primary role will put you in a great position to switch teams if a chance arises. I've seen people move from sales to demand generation or from business development to the customer success team.
Pros: It might be easier to switch teams, allowing you to explore different career paths. Promotion can happen quickly if the company is growing.
Cons: You might not have a clear career trajectory or understanding of how you could reach the next level.
Five traits for success working at a startup
People best suited to working at a startup typically have several unique characteristics. They're adaptive, curious, action-oriented, collaborative, and not afraid to take risks.
Adaptive
In an early-stage company, the business and the team are constantly evolving. The product team may need to pivot to focus on a vital feature requested by a new client. Otherwise, the sales team might refocus efforts on a new persona or industry after hearing compelling feedback at an event. While things change in larger organizations, there’s typically a lot more rigidity around the product roadmap, and shifts in sales strategy or team size will be more measured.
These changes are much more visible in a small organization, and your role can change, too. Therefore, it's essential to be adaptable and flexible while learning to prioritize the most impactful tasks.
Curious
When you work in a startup, you'll constantly learn new things. Your job may include things far outside the initial job description. This can be fun and an excellent opportunity to determine your strengths and weaknesses. However, you might need to work on things out of your comfort zone. Naturally curious people will be happy to research new ways to do things or reach out to their network to figure things out.
Bold
In a larger organization, roles are more structured and hierarchical, whereas in a startup, roles and responsibilities are less well-defined. There’s not always a clear owner for a project; taking the initiative by volunteering to take on something new will give you visibility among leadership. People who thrive in a startup environment are not afraid to problem solve, present solutions and take responsibility for new tasks. This could mean implementing a new tool, setting up a process for customer communications, or using AI to simplify an annoying sales process.
Collaborative
External market shifts have a considerable influence on whether a startup succeeds. However, the other significant factor is ensuring cohesion, with everybody working towards the same goal. Of course, you’ll get to know your colleagues well. Working together on projects, assisting others and having empathy will be critical in moving the organization forward. Plus, when people are strapped for time, they might be more stressed. So, having the ability to sense challenges and help people out when they're struggling will go a long way.
Action-oriented
At a startup, waiting for instructions isn’t an option. Things move fast, and progress happens when people take action. Instead of hesitating, you jump in, figure out what needs to be done, and make it happen. The work won’t always be perfect, but getting something in front of clients is better than delaying for perfection.
Considerations before you join a startup
The fast-paced, changing nature of startups may not suit everyone. Still, it can provide opportunities to learn new skills and contribute significantly to the company's growth. Plus, not all startups are equal. They have different structures, cultures, growth trajectories and challenges. Here are a few things to consider before joining:
- Career stage: Are you just getting started and looking to learn fast and try new things, or are you several years in and interested in a more stable, process-led environment? Startups can be great for people still figuring out their strengths and weaknesses. Alternatively, those more experienced in a particular field might thrive in a completely different environment when they can use their knowledge to establish structure and leadership foundations.
- Company culture: At a smaller company, the founders make the decisions with help from the board. They're influential in everything from marketing to the product roadmap. As a result, the founders greatly influence the work environment and culture.
- The product and industry: Are you enthusiastic to learn more about the industry and who you’re building for? You’ll be immersing yourself in a particular company, so it helps if it's interesting rather than working at a big-name brand for prestige. You also want to ensure good growth potential, so evaluate the market size and competition.
- Sales strategy: The company's structure and environment will vary based on whether it operates in a B2B (business-to-business) or B2C (business-to-consumer) model, whether they focus on product-led sales or high-touch, big-ticket sales, and whether their target audience is conservative or innovative. This will have a more significant impact on roles within sales and marketing. Product development cycles for consumer goods or mobile apps will likely be even faster.
Is Startup Life Right for You?
Working at a startup can be exciting, fast-paced, and full of opportunities, but it’s not for everyone. If you enjoy taking initiative and love learning, a startup could be the ideal place to develop your career. However, the constant change, limited resources, and lack of structure can be challenging. Plus, there’s always a risk of failure.
Before joining, ask yourself:
- Do I enjoy getting involved in different projects rather than becoming specialized?
- Do I want to help build something new?
- Am I ok moving fast and solving problems on the fly rather than following a set structure?
- Is having equity in the company I work at appealing? Stock options typically take four years to vest, and you’ll still have to purchase them. However, they’ll be highly valuable if the company sells or goes public.
If the answer is yes, then startup life might be your ideal path. Witnessing a company double or triple in size and knowing that you contributed is rewarding.
