Are startup companies good to work for? Pros and cons you should know

Are Startup Companies Good to Work For? Pros and Cons You Should Know. A woman at a computer makes her decision.

Startups have become synonymous with innovation, ambition, and disruption.

They promise high energy, growth potential, and the opportunity to shape something from the ground up. But are they really good places to work?

At Stone & Chalk we work with lots of startups, and the answer isn’t black and white. It depends on who you are, what you value in a career, and how much risk you’re willing to take.

Here's our take on what it’s like to work for a startup, weighing both the benefits and the challenges, and help you decide if startup life is for you.

What is it like working for a startup?

Working for a startup is often described as an intense, fast-paced experience.

You might walk into an office (or more likely, an open-plan workspace or even a co-working space) where the energy is palpable. Everyone’s working on solving big problems, deadlines are tight, and decisions happen quickly.

As one of our Stone & Chalk founders say, "the excitement of a startup comes from the sense that every day, you’re building something that didn’t exist yesterday."

Startups are typically small teams, so everyone is expected to contribute. You wear multiple hats, handling things beyond your job title. One day you might be focusing on your core responsibilities, and the next you’re brainstorming marketing strategies or even troubleshooting product issues.

As another Stone & Chalk founder puts it, "in a startup, learning isn’t optional—it’s built into the job. You’ll gain more hands-on experience in a year than many do in five."

Startups thrive on agility. If you’re someone who loves routine, predictable tasks, and structure, this might be disorienting. If you enjoy variety and autonomy, startup life could be a perfect fit. Decisions get made fast, and if you have a good idea, there’s often room to run with it without a ton of red tape.

Benefits of working for a startup

So, why would someone choose a startup over the stability of a corporate job? There are some real perks.

  1. Exciting work space: You’ll be hard-pressed to find a more exciting place to work than a startup. It’s often full of ambitious, driven individuals who are passionate about what they’re doing. Startups are constantly evolving, so your work life never feels stagnant.

  2. Fast career growth: Because startups are smaller and less hierarchical than big companies, there’s usually more opportunity for quick upward mobility. If the company grows, you grow with it. Titles don’t matter as much, but responsibility does, and with the right attitude, you can find yourself in a leadership role in no time.

  3. Impactful work: One of the biggest draws of startup life is the ability to make a direct impact. In larger companies, you might feel like a cog in a machine, but in a startup, your work matters. You’re contributing to the company’s success every day, and that’s both motivating and rewarding.

  4. Wearing many hats: Startups are lean. They don’t have the resources to hire one person for every task, so employees are often expected to take on responsibilities outside their core role. It’s a fast way to learn new skills, and it can be incredibly stimulating if you enjoy variety in your work.

  5. Flexible culture: While startup hours can be long, the environment often compensates for it with flexibility. Want to work from home? Need to shift your hours to fit your schedule? Startups tend to be more open to alternative working arrangements than traditional corporate jobs. The focus is on output and results, not on how or when the work gets done.

Potential drawbacks of working at a startup

But it’s not all free snacks and ping-pong tables. Working for a startup does come with challenges, like the following, which you need to know about before taking the leap:

  1. Uncertain job security: Startups, by their nature, are risky. Not all make it past their first few years. If job security is a top priority for you, a startup might not be the best option. Things can change quickly—funding can dry up, markets can shift, and suddenly you’re out of a job.

  2. High-pressure, fast-paced work: The same fast pace that makes startups exciting can also make them exhausting. Long hours aren’t uncommon, especially when the company is in a crunch or trying to hit funding milestones. The pressure to deliver is constant, and some people thrive under that, while others burn out.

  3. Challenging work-life balance: Startups often demand a lot of time and energy. The lines between work and personal life can blur, especially if you’re passionate about what you’re building. While some startups have embraced a healthier balance, it’s something to be aware of, particularly in early-stage companies where every moment seems crucial.

  4. Fewer processes or structures: If you’re someone who thrives in an environment with clear guidelines and procedures, a startup might feel chaotic. Processes are often being developed on the fly, and it’s not uncommon for things to change rapidly. This lack of structure can be stressful if you need clarity in your role or tasks.

  5. Less stability and fewer benefits: Startups don’t always have the cash flow for competitive salaries, benefits packages, or perks that you might expect at larger companies. If financial stability is a priority, the money at a startup might not meet your expectations, especially when you compare it to corporate benefits.

Comparing startup jobs to corporate jobs

When deciding between a startup and a corporate role, we find these are the key differences:

  • Stability vs. agility: Corporate roles often offer more stability, with established structures and a clearer path for career progression. Startups, on the other hand, are constantly evolving. Your role might change overnight, and the company could shift direction just as quickly. If you like stability and predictability, corporate might be the better fit. If you thrive on change and uncertainty, startups could be your sweet spot.

  • Hierarchy vs. Flat structures: Startups usually have flat structures with little hierarchy. Everyone is involved in decision-making, and it’s easier to have direct contact with leadership. In a corporate role, there’s more structure, which can sometimes make it harder to get your ideas heard.

  • Tradition vs innovation: Startups tend to be innovation-focused, willing to try new things and disrupt the status quo. Corporations, while innovative in their own ways, often rely on established processes. If you’re a creative problem-solver who loves to shake things up, you’ll likely find startups more exciting. But if you prefer refining and perfecting what’s already working, corporate roles may be more satisfying.

  • Work-Life balance: Corporate jobs often come with more predictable hours and better work-life balance. Startups may offer more flexibility in terms of where and how you work, but they often expect long hours, especially in the early stages.

Is working at a startup right for you? Questions to ask yourself.

So, how do you know if a startup is the right fit for you? Ask yourself the following questions to see if it makes sense for you to work at a startup:

  • Do you enjoy taking risks? Startups are risky by nature. If the idea of working somewhere where your job security is tied to the company’s survival makes you anxious, a startup may not be the best fit.

  • Are you adaptable? Startups are constantly changing. If you’re someone who loves structure and dislikes frequent shifts in direction, corporate life might be more comfortable. But if you can roll with the punches, startups could be a great match.

  • Do you want to learn fast? Startups are fantastic learning environments. You’ll pick up new skills rapidly because there’s no other choice. If you’re looking for a job where you can grow your skills quickly, a startup might be perfect.

  • Can you handle uncertainty? Startup life is unpredictable. If you prefer stability and security, you’ll likely find the uncertainty of a startup environment stressful. But if you’re willing to embrace the unknown for the possibility of big rewards, it might be worth the gamble.

Should you work for a startup?

Startups aren’t for everyone, and that’s okay.

They can be incredibly rewarding, offering fast growth, meaningful work, and an exciting environment. But they also come with challenges like uncertainty, long hours, and high pressure.

We find that whether or not a startup is a good fit comes down to your personal goals, values, and tolerance for risk.

If you’re adaptable, enjoy a challenge, and want to have a direct impact, startup life might be right for you. If you prefer stability, clear processes, and predictable growth, a corporate job might be a better fit.

Are you ready to take the leap? Join a startup at Stone & Chalk and enjoy an innovative community driving the success of Australia’s tech future.