Is now the right time to work at a startup? What to consider before signing on

A person places a bet whenever he or she accepts a job at a startup company. Picking a winner can result in substantial riches. Picking a loser could result in another job hunt. Experts say startups are still viable options for job seekers despite the recession and pandemic — if they’re willing to take a gamble.

“Startups are always risky — some would say even reckless,” said Alisa Cohn, who is an executive coach and startup expert. “And yet amazing companies have been born in difficult times — just look at some of the companies coming out of the Great Recession: Slack, Dropbox, Airbnb, my clients Venmo and MongoDb, along with many others. Many startups are actually doing very well right now — direct to consumer, remote tools, the ubiquitous zoom — and large so-called ‘safe’ companies are laying people off.”

LinkedIn’s 2020 Top Startups list is full of companies defying the odds by thriving during these difficult times. They range from companies, such as DoorDash and Capsule, delivering people what they need at home to those like Curative and Carbon Health transforming health care.

Many of these startups are still hiring, despite the crisis. “We've managed to keep our strong hiring pace throughout the pandemic,” says a representative from semiconductor designer NUVIA. 

Most job seekers agree that startups are still just as attractive as more established companies. Of the more than 1,800 people who answered a poll on LinkedIn, 75% said they would consider working at a startup despite these uncertain times. Only 14% said they would rule it out completely.

“Those who are attracted to the unknowns and twists [and] turns of startup life should not let themselves be lured away from that career path by the promises of 'more established' companies,” said EB Sanders, who is a career coach. “Especially because there is no real security in any position. The gold watch retirement and company loyalty days are a thing of the past.”

While the current economic landscape has been difficult for newer companies that lack cash reserves to keep them afloat, people have found work and rewarding opportunities at startups during the pandemic.

Anthony N. said he accepted a job at a startup over the summer despite the uncertainty and having a second child on the way. “Thus far, it's been an immensely powerful way to stretch my skill set and expand my network,” he said. “If things do not succeed, I believe I will have grown and I'll be far better positioned for future opportunities.”

Similarly, Anders Liu-Lindberg said he joined a startup just as the coronavirus began shaking the foundations of the global economy. “What is great about start-ups in this current environment is that they are a lot more agile and can pivot new offerings that better fit the current economic environment,” he said. “Big corporations will struggle a lot more and you see them laying off millions of workers.”

There is also no shortage of people willing to take the leap into the world of startups.

“Personally, I would do it because there is not really a ‘certain time,’” said Katherine Miller. “Economies wax and wane, there is no reason to avoid risk if you are comfortable with it.”

Cohn also suggested a couple of criteria for evaluating a startup as a potential employer. Specifically, the job seeker should believe in the company’s mission and align with its culture. People should also look for startups that will provide them with new and valuable skills, experiences and a network.

Job seekers should also pay attention to the startup’s finances, said Shell Mendelson, who is a career coach. “There are no guarantees with any job,” she said. “But you can mitigate a calculated risk by asking the funding question. Don't be shy.”

Companies should be able to cover a year of costs, said Stephanie Grossman, who is an executive coach. “Investors are still putting a lot of capital into companies they see as having strong potential,” she said. “Some are young startups, others more established. Mitigate risk by following the money.”

Ultimately, the advice is about the same for any job seeker looking to apply to a startup or a more established company.

“Now, even more so than before, companies are looking to ‘invest’ in their new hires so now is the time to do your research, demonstrate your value and worth, and lean into your desire to be a part of a company or start-up that will provide you a return on your investment with them,”  said Lisa Meadows, who is a leadership and career coach.

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