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In this video, I covered the cruel startup reality that many people don’t realize until they enter the startup world. Startup jobs are increasing in India but this dark reality of startups is not exposed to many young employees at the moment. The reality of startups in India is not very different from the reality of startups elsewhere in the world. This video will help you decide if you should join a startup or not. The salaries offered by startups may sometimes be greater than the salaries offered by stable corporates. However, what you have to face as a consequence of choosing to join a startup versus staying back in a stable corporation is something that needs to be debated.
If there is someone who has got an offer from a startup that is willing to pay them more than their current job they should consider the following realities of working in a startup before choosing to do that job. The first such reality is that there is hardly any peace of mind for those working in a startup. This is because startups do not prioritize processes. Since the startups do not have the money or the time to do process building, they often end up ignoring it. Because of this, the people in the company end up becoming more powerful than the processes.
So, you will often notice that founders determine the culture of the company. If the founders are good then the company culture is going to be good. Since the processes are already bad it becomes really difficult for a newcomer to survive in such a setup. Because of this, as long as you can please your bosses or managers, you will be in safe hands. But once that is done, you won’t be able to get recognition for great work but rather just people-pleasing.
Another reality is that you do get to learn a lot but just to get in you will need some expertise. You will need some domain expertise and skillset otherwise there will always be someone else who is ready to take your job and replace you at the startup. If you join a company but the needs of the company change, there is no scope for upskilling. This is because startups cannot spend that much money on training and upskilling sessions. So, because of this they just go and hire new people.
Moving to the financials of the startup world we first need to know what ESOPs are. They are simply Employee Stock Option Plans. This means that companies are valued at a certain amount and employees get a share in the company. So, depending on the value of the company the value of your ESOPs also changes. So, if the valuation of a company like Byju’s drops by 90% then the value of employee ESOPs also drops by 90%.
The next issue is that the startup jobs as well as the startup companies are unstable. Convoy, a US-based startup valued at $3.8 Bn recently filed for Bankruptcy. This means that the total valuation of Convoy today is close to 0. So, who should join a startup? Well, the simple answer is that if you are somebody who doesn’t worry too much about money then joining a startup does make a lot of sense. Another reason why you can join a startup is that you want to apply for an Abroad MBA.
Folks in MBA admissions and post-MBA recruitment will value people who have worked in several startups and learned a lot in comparison to folks who have had only stable jobs. So, if you don’t have any financial commitments which you can’t avoid you can definitely choose to go for startups. The last problem is that when you get laid off because a startup product didn’t work out, it doesn’t look really good on your resume.
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About Me
I publish meaningful and valuable content on this channel. My aim is to make business news more accessible and easy to grasp. If you find my videos informative and insightful then make sure to subscribe and leave a comment. I’ll see you in the next video
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Chapters
0:00 - Intro
0:48 - #1 Reality of Startups
2:25 - #2 Reality of Startups
3:28 - #3 Reality of Startups
5:20 - #4 Reality of Startups
6:00 - Who Should Join a Startup?
7:33 - Outro