Advantages and Disadvantages of working in Start-up

Hemlata Khandelwal / 2021-06-26 12:06:43

Start-up Company in India

In our previous blog, we had read about the Start-up company introduction or internal start-up company and how start-up funded. Now in this blog, we read about the advantages and disadvantages of start-up companies.

If we talk about the Growth

• Whenever we talk about traditional business, then there is less scalability for growth, but the thing about a start-up is different because these companies grow very soon and in a very short time capture a huge market in the whole country.
• Most start-ups in India are technology-based, which have high scalability at a low cost. For example, you can take Paytm, which is a start-up company fintech itself.
• Now which is showing great growth in Mobile Wallet Business and in a very short time has captured a very large % of the market of Online Mobile Payment.
• If you are selling software in a small market, then you will not be called a start-up company. There is always a need for innovation in start-ups and which have high scalability.

Funding for Business

Funding is required in both Traditional Businesses and Startups to run your business. Traditional Business has only one option for money which is Bank Loan. which they get after giving securities. At the same time, there are many ways in Startups for funding such as Angel Investor or Venture Capitalist, etc. Those who give you money in exchange for shares or equity, here do not ask you for any security.

Here the investors are looking for high scalability and growth companies that provide them high returns. Therefore, the Startups in which these investors invest their money, also provide them mentorship to run the business.

Exit Strategy in the Beginning

• If you lose business in Traditional Business, then you can close it and choose another business because the owner is under you here.
• Whereas in Start-up, since the funding is done by Angel Investor or Venture Capitalist, so at the beginning itself you have Exit Strategies like the merge with another company, acquisition by another big company, or IPO.
• Therefore, here the investor can easily sell his shares to other companies or people and exit in exchange for good returns.

Working Culture:      

Traditional business has a traditional working culture in India, but there is something else about start-ups, where employees are taken special care of.

Here their offices are made attractive with which good perks are also available. Some start-up companies also provide shares along with salaries to their employees at low prices so that the motivation of the employees is always maintained.

USP:

Traditional business has always had similar nature, strategy, and process to do business but start-up companies in India were already quite innovative which simplifies their business and thereby remains a better USP for the customer and within the market.

These were some important 5 points that define Start-up Companies in India.

Advantages and Disadvantages of Working in Start-up

Well, doing any work has some advantages and disadvantages. Similarly, working in a start-up has both advantages and disadvantages. So let us know what are the advantages and disadvantages of working in it.

Advantages of Start-up:        

1.  Having Unique Experience -

You will get a unique experience of working here. Here there are not only gaming rooms and skateboarding in the hallways, apart from them there are many resources to work here.

Start-ups know very well how to create a favorable environment to work. Creativity and innovation are needed to pursue any business, for which it is very important to have a stimulating workforce.

2.  There is a lot to learn -

• In start-ups, there is a lot of responsibility on the employees, due to which they get to learn a lot. They choose you because your skills are that good, but founders expect more from you.
• You help the start-up to move forward all the way. Often you work more than your job description, which gives you a good opportunity to learn something new.
• Founders and employees work together, so there is no middle management here, due to which you get to learn from the best people.

3. Here Employees work without any supervision. They take smart decisions in this and are ready for the consequences. Due to which they always get the motivation to move forward.
4.  You Can Innovate - 

Start-ups need to grow quickly. If they do not move ahead in time, then they can be crushed. Employees get full opportunities to show their talent.

If their ideas are liked by higher officials, they are also provided the incentive to do such good work.

1. There is always pressure to move forward, but dynamic energy always drives the start-up to move forward. It is a strange comfort to see your company growing and decreasing and sharing the same thing with your team gives even more happiness.
2. Perks here – Not only money, but you also get other perks which encourage you to work here such as:
3. You can work from home or from home
4. Having short work weeks
5. Very casual atmosphere
6. Gym and other health facilities
7. Discounts and free services for employees
8. Free food (and sometimes drinks!)

Even if we talk about long-term benefits, we can still get many things from the company, such as a good position (senior position, VC, chairman), along with this, employees also get good stock options in it.

Job Satisfaction - Employees share the birth, growth, and success of the company here. That is why it is a very good career path for the present generation. When the company performs well then they can be proud of how much they contributed to it.

Disadvantages of Start-up

1.  High Workload -

Ensure that you have to work here for a long time, get very little leave, and get less vacation.

Start-ups always work with the trend and hence they have to change with the trend to always participate in the competition. That's why Employees have to give more effort. Due to which it is common for them to be stressed.

2.  Job's Stability/Security -

You may like your work very much but you cannot maintain it for long.

Research has revealed that 90% of start-ups die within their first 3 years. Mainly this happens more with tech start-ups because new inventions cause a lot of damage to their business. That’s why we suggest taking Company Registration in India according to your work/start-up business.

3. Start-up founders have a very brilliant idea from which they take out a lot of seed money for their venture, but this does not make them an experienced leader. The lack of strong mentors greatly affects their job stability.
4.  You cannot earn much here in the initial days -

Investors never give much salary to aspiring entrepreneurs. They mainly invest more money in operating costs, product development, and increasing the customer base. In most cases, the salaries in a start-up are less as compared to traditional companies.

5.  Lack of Social Life -

• Even though you are having a lot of fun in your office, but you also have to work very hard. Here Employees have to work under extreme pressure so that the loss can be reduced.
• Due to which social life is automatic gets reduced. Work-life balance is a bit difficult and working too much can also cause problems in your health.
• Start-ups fight even when they achieve great heights because technology is changing, and competition is becoming increasingly difficult.
• One wrong move here can throw you out of the race. That's why they fight for Start-up has always been on and will remain so.