Should You Trust Your Career to a Startup in a Tough Job Market?

According to USA Today, recent college graduates have a double-digit unemployment rate. Should you focus your job search on small businesses rather than large corporations in this difficult economy? You should weigh the risks and benefits of entrusting your career to a startup before making any decisions.

The risk is that you will be underpaid.

Because most startups are underfunded, you can expect to be compensated with company stock and a lower salary than competitors. You may not be paid on time, and your hours may be reduced on paper despite the fact that you work well over 40 hours per week.

Reward: You could make a lot of money.

Imagine working for Mark Zuckerberg’s company for a low salary and some Facebook stock. If the business succeeds, you may be able to earn a substantial sum of money. With the right startup, even entry-level employees can strike it rich.

Risk: You will be required to work long hours.

Startups don’t have the luxury of taking your work-life balance into consideration. The workload can be significant when there are few employees and little money to hire more. You’ll most likely work nights and weekends, especially if a client needs a product quickly. However, this extra time will most likely not be “on the clock.” Working these hours is required in order for the startup to meet its obligations, grow, and become a successful company. You and your teammates will both benefit as a result of this.

Reward: You’ll have a resume full of diversified, quantifiable experience.

The majority of startups have very hazy job descriptions. “Other duties as assigned” can become the norm rather than the exception when there are few employees and a changing business plan. Keep track of your changing skill set, and you’ll be able to create a resume that stands out.

There’s a chance your job won’t last a year.

The vast majority of startups are only in operation for a year or less. The best way to ensure that you don’t lose your job is to look at the startup with a critical eye before applying. Is the startup well-funded and has a unique business proposition? If that’s the case, it might be worth taking a chance.

You will have an enviable network as a reward.

While established businesses have a well-defined customer base, startups are constantly on the lookout for new clients and vendors. When you work for a startup, you can’t help but meet a lot of people, even if you’re not in sales. Most importantly, your coworkers at the startup will become a close group. After all, you all share the same dream, work the same long hours, and are paid the same low wages to make that dream a reality. Your network will remain strong even if your dream does not come true.

Working for a startup isn’t for everyone, but it could be the perfect fit for you. If your resume could use a boost and you’re willing to take a few chances, you could reap some incredible benefits. Just make sure to look over the startup’s business plan before submitting an application.