Startup: the Perfect Place to Begin Your Top Manager Career

For many people who consider themselves great leaders and aspire to build a strong, successful career, management is the best choice. It requires good leadership and communication skills, knowledge of the company's field, responsibility, and dedication. What better place to prove your worth? Moreover, it pays well.

According to the Bureau of Labor Statistics report, the median salary in the industry in March 2023 was $137,750. This is more than twice as high as the median for all occupations, which is $65,470.

Those who are ready to take the step into management or have already taken it often don’t really consider one type of company when looking for a great job opportunity: startups. What makes startups so special?

Startups are essentially new businesses that are just starting out and are often founded by entrepreneurs who want to bring a new product or service to market. These companies are typically characterized by their innovative ideas, agility, and potential for rapid growth. Unlike more established businesses, startups are usually working with limited resources and face high levels of uncertainty. They often rely on funding from investors to help them grow and expand their operations.

Overall, startups play a crucial role in driving innovation and pushing industries forward with their fresh ideas and approaches. For a manager this means both great career and skills growth opportunities. Let’s dive deeper and figure out what startups may offer and how suitable they are for you.

• The median manager salary is significantly higher than the average across all occupations
• Startups attract innovators and passionate individuals who drive development
• At the same time, working at a startup is a risky adventure

It’s about growth

No businesses grow as rapidly as startups. This growth can be compared to skill development, such as learning a language. The initial progress is the most noticeable and provides the most motivation to continue thriving. The same applies to companies. The first investment, the first deal, the establishment of the first department, and so on. The growth you can experience from a startup can be divided into three categories.

Professional growth

It doesn’t matter what job title you have; in a startup, everyone does everything. It’s really hard to think of a better place to learn so much so quickly. You cannot not learn; you have to do things, you have to help the business grow.

A startup is a place where a software engineer manages a project, conducts interviews for newcomers, creates designs, and leads a team of developers. If someone can’t do their job at the moment, that means you will. Every person in a startup has a purpose and a mission, and they grow together to reach their goal.

Personal growth

In a company with 5 to 20 people, you’ll have to talk to everyone every day. You make decisions together, have lunch together, and celebrate every step together. So, whether you want it or not, your soft skills will skyrocket. Communication, responsibility, time management, leadership abilities, and many more.

Along with soft skills, your personality will also develop. People become more mature because they have some great experiences. And by great, I mean difficult but priceless.

Career growth

It’s easy to be overlooked in a big company, where every promotion takes months or even years. Startups, as fast-growing businesses, have to make quick decisions. Internal promotion is much quicker than hiring a completely new employee. Thus, someone who was a rookie yesterday could be leading a department within a year.

If you stick with a startup long enough for the company to hire a lot of new employees, you have the best opportunity for promotion. What’s even more interesting is that it doesn’t matter how experienced you are - startups have a place for everyone.

• Startup is a great place for personal, professional, and career growth
• Professionally, you may acquire valuable knowledge and useful skills
• Personally, it offers a great opportunity to develop soft skills such as communication and leadership
• In terms of career advancement, growth in a startup environment is much faster

Any step of the ladder

Startups are a great fit for any type of employee: rookies, those with 2 years of experience, and even executive-level managers. This is linked to the life cycle of the business itself. At the beginning, every business goes through several stages, each with its own traits and requiring different skill sets from managers of the company.

Rookie

Even with little to no experience, people are welcomed in startups because of their passion and desire to learn and grow. Rookies are one of the best choices for startups, especially in the early stages where development is ongoing. The early stages of startup development may be the best choice for a rookie as well.

At the beginning of its journey, a startup requires energetic youngsters full of ideas and potential to bring life to the project. This is the best opportunity to gain hands-on experience, helping with different parts of the project, interacting with a diverse range of people, and providing value to the team. This is an experience you’ll never get as a rookie in a big company with strict boundaries of responsibilities and a clear hierarchy.

If you perform well, when a startup begins to grow, you have a good chance of being promoted, depending on the role you started from. Even if you do not become the leader of a team, you are now a senior for new employees. They will look to you as an experienced and knowledgeable colleague. Being in such a situation, 'between the roles' of a colleague and a manager, is also valuable for future growth.

Little experience manager

For a startup, a manager with little experience is a one-size-fits-all employee. Generally, such managers already have enough skills to manage a small team of 3 to 5 people, but they ask for lower salaries than more experienced and successful managers.

For such managers, a startup can also be the perfect place to boost their career. They’ll be valuable at any stage of the startup's development and growth. In the early stages, they will have the opportunity to learn new skills rapidly, managing projects more than other employees. As the business starts to grow, a manager will become a true leader and begin to manage teams or even a whole department, depending on the initial size of the startup.

At a more advanced stage of business growth, a manager with little experience who has now become a valuable employee has been through a lot and, consequently, can do a lot as well. This growth may allow them to aspire to executive positions in larger companies or even start their own business if they want to.

Well-experienced manager

A well-experienced manager may be too much for a small startup that is only at the very first steps of its development. Later, however, such a manager may become very useful.

Some founders prefer to manage everything themselves until the need for a good manager becomes obvious. This is when a senior manager with many years of experience and a completely different skill set takes the lead.

Their leadership can change everything, making the company grow steadily and successfully. With the senior manager on board, the startup can expand its operations, enter new markets, and deal with tough challenges more effectively. The founder's vision, combined with the manager's experience, creates a strong team that moves the company forward into new opportunities.

• Startups can help rookies gain the necessary experience and confidence
• Managers with little experience can find a great path for career growth in a startup environment
• Well-experienced managers are essential for startups during their rapid growth stage

What are the challenges?

Nothing is perfect, including startups. There are major drawbacks that explain why some people prefer stable companies over small, growing ones. It's important to consider these drawbacks when choosing where to start your career.

Overwork

There is always something that needs to be done at a startup. Resources and the number of people are limited, so everyone tries their best to maximize output. This provides an enormous amount of experience in a variety of fields, but it comes at a cost. There is a lot of stress, sleepless nights at work, and fewer days off due to constant overwork. Make sure you're comfortable with this and are focused on bringing value to the team.

Dedication

This is not something you can simply leave behind. If you step into the startup world, be prepared to stick with it until the end, when you can confidently say, ‘We made it!’ It’s hard to explain. Of course, no one will force you to work there if you don’t like it. However, there is something psychologically stressful about it. The longer you work in a startup team, striving to create a masterpiece, the harder it is to leave if you have reasons to do so.

Risks

There is no guarantee of success. No matter how hard you and everybody in a team try, success is not assured. Almost 45% of new businesses fail in the first 5 years. So, at any time and moment, everything may fall apart, and you could lose your job. It sounds harsh, but it’s true. Take it into consideration.

Lower salary

It's no secret that the salary in a Fortune 500 company will be higher than in a startup. People who choose the latter option work for the idea, not for money. However, there are some aspects they may not consider before starting a career in a startup.

A lower salary often means little to no additional compensation, such as health insurance, retirement plans, or paid sick days and vacations, which are typically offered by larger, more established companies. Instead, startup workers may receive equity, which is a share of the company's value. This can be a valuable asset if the startup succeeds, potentially leading to significant financial gains. However, if the startup fails, this equity may become worthless, leaving employees without the financial security they would have in a more traditional work environment. It's important to carefully consider these factors when deciding whether to pursue a career in a startup.

• One of the challenges of working in a startup is constant overwork and high level of stress
• Those who want to pursue a career in a startup should be ready to give their all and potentially receive nothing in return, as startups are very risky
• Working for a smaller company means not only a lower salary but also fewer compensations

So what?

A startup offers a great opportunity to launch a managerial career faster, gaining experience in various fields and industries. However, it's not for everyone. You must be prepared to work extra hours for potentially lower compensation and to face a high level of risk.

But if you can persevere through these challenges, your efforts will be highly rewarded with a multitude of developed skills, a wealth of useful knowledge, and a clear path up the career ladder.