MBA Career Risks and Startups

Startups have emerged as the spirit of Indian ecosystem in last few years. We are constantly seeing a rise of unicorns and the scaled up levels of funding that are infused towards the support and growth of these unicorns. The investment trends also indicate the mood of the investors that went from grim to encouraging towards startups during recent times. India is a thriving market for startup companies and the scope is exponential. Startups have been reluctant in hiring MBAs till recent times but with the latest shifts they have embraced MBAs in larger numbers. Working for startups may have numerous perks, yet several career risks are involved. It is no secret that more startup companies fail to establish themselves in competitive world of business than the ones that succeed. But this surely would not mean that taking up a job here will not fetch you valuable experiences.

 

For these new ventures, scaling a business, needs people with excellent management skills and attributes. And for the MBA graduates working with them would mean the ability to see themselves making an impact immediately and growing alongside the firm. Most of the times, it is a win-win situation for both the parties.

 

Let us understand the tradeoffs of working in startups. For those who intend to join a starting stage business, here are a few things to expect:

 

Advantages of Joining a Startup for Career

An Exciting Designation

When working with top companies, there is a schedule for promotions generally followed by defined appraisal procedures. But the startups in the early stages do not have such set of rules; therefore this can fast forward your career even beyond your imaginations. While a blue chip company looks at your experience but as the time passes by it matters less and your performance takes a front seat for your path forward. In a startup you grow as the company grows and you receive responsibilities and promotions irrespective of time and policy boundations.  Although, these new ventures at this stage may not have structured processes, but the growth prospects can also turn out to be manifolds. Success depends much on your obsessiveness to prove.

 

An enriched resume

For a startup, an MBA graduate can make huge contributions. The new joiners need to work and achieve much more with having to undertake various roles and various opportunities. The job roles require everything to be done from new launches to gaining customer base and scrutinizing results etc. This produces some really good bullets to add to your Resume.  There are no job description limitations so you can move through many facets of business.

 

Diverse Thought Process

The blue chips and big corporates have stipulated path prescribed for doing things. This is based on what was being done from their past experiences.  Here you are required to design, build and create by making use of vivid skill sets instead of following protocols. This fosters novel and adaptive thinking and generates abilities to think beyond. There will be more room for innovation, interaction and this will steeply raise your learning curve. The problems are hence handled in a different manner and constant efforts to find solutions are always stirred.

 

Utilization of MBA Skillsets in Entirety

In a startup you see the rise of a company from the ground. You get to know business, company culture, values and are a part of everything. At least you can be a key employee, a spectator and learn more about the most important strategic decisions through the progression of company.

 

Working with a Passionate Team

Each step by a startup is directed towards finding solutions. Nothing is predefined and systems are still at a developing stage in these companies. It takes a team of highly self-driven, capable people to take the challenge of building new things from the scratch. To work in new ventures is one big challenge and a right team is most important of all the elements. This has to be a team that wants to construct a Google again. This is a small group of passionate people who work for company’s success.  You will experience quest and adventure, working with such an energetic lot. So what you put in will be clearly visible and valuable to the enterprise.

 

 

But this kind of life is not everyone’s cup of tea.  A number of new businesses that ventured in the beginning of this century now stand strong after a successful rise. But starting a new project is not all that rosy, like it looks. So many new businesses give up not before it is long. There is a lot of risk associated with working in such environments. Here is a little consideration on what could be the risks involved:

 

Disadvantages of Working with Startups

No Formal Training

This is not a schoolroom. You are hired with an expectation of reaching the running ground fast and you need to learn rapidly all on your own. There are going to be no training sessions and big orientation groups to get you started.

Perks

You are going to miss out on the perks like training in fancy venues, cafeteria, gyms, luxe office areas etc.

Unstructured Environment

Processes and systems would not be in place in these newly born companies. The ones that are actually critical to the functioning of company are the only processes in place. There are lesser employees, first-time leaders and no policy handbooks to refer. This leads to inefficiency, budget discrepancies, no timelines etc.

 

Responsibilities beyond the Job Descriptions

Even when your job descriptions does not state, you get drawn towards the burning issues of the company. Since there are lesser people to contribute, everyone is taken into the loop for finding faster resolutions. Also you need to carry on multiple tasks at the same time as there is lack of human and other resources.

 

Intense Work Environment

There is a lot of energy that goes into working in new ventures. A lot of quick moves that are required to be taken in short time span may trigger arguments and disagreements. People are highly focused because, to have the things done is not just a necessity but is a matter of survival too.

 

Fear of Failure

Despite of all, there is a panic about failure working with startups. But remember that many successful businesses were started with just an idea, and failure was just a path to success. It is not always bad to fail,so never loose enthusiasm.

 

Conclusion:

Working for start-ups is not a bad idea although it seems risky.  New businesses are more progressive in nature and make room for creativity and individualism. Those working in startups turn out to be very abled in their areas because they work on building something of value. More than a job, it is a mission and a path taken to do something one firmly believes in.

 

So how do you know if it is worth taking a risk? Since the career risks attached are bigger, take some time to figure out more about the company you are going to join.  Get ready with some appropriate questions to ask during your Interview. Gauge about company’s past records. Know more about the marketplace position of the company, find out more about the leadership team and their background. Thirdly, understand where is the company being funded from and what future plan is in place for company’s future funding requirements.

 

Do not forget to seek guidance from your mentors and experienced people around. Since everyone may not think in the same direction, do your research well. Read articles and latest developments about the company. Find out more about people who joined them recently and about their backgrounds. This may give you a fair idea about which path to choose when you want to decide.  It only requires a better approach and some calculations to arrive upon a verdict.