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The Pros and Cons of Working for a New Business

Working for a new business is something that many people have considered at some point in their career. Whether it’s because you’re fed up with your current job or because you want to get in on the bottom floor of a fledgling company, the excitement of starting off fresh may have you considering moving to a startup.

The Pros and Cons of Working for a New Business

Making a drastic change can be tempting, but understanding the advantages and disadvantages that come with working at a new business is key to making an informed decision. By looking at both sides of the argument, you can determine if such a transition would be the right move for you.

Here are some of the top pros and cons to contemplate before making your choice:

working for a new businessPros:

Great Learning Experience

The experience you attain from working in a startup environment is invaluable. Learning to adapt to limited resources, having the freedom to pursue ideas and seeing the company prosper (or fail) will give you a good handle on business operations. Many who work in new companies find themselves wearing multiple hats, which can add distinction to their resume.

More Freedom & Opportunity

One major benefit of working for a new company is the freedom to handle responsibilities autonomously. These fast-paced atmospheres often encourage employees to take the reins on their tasks and determine the best route of action. This gives employees a chance to prove themselves while reducing the stresses of micro-managing often prevalent in bigger businesses.

Better Work Environment

Startups often tend to have a more open and warm workplace. Whether it’s the vibrant company culture or having more flexibility at work, these advantages have a strong appeal for individuals. Other benefits that attract people to startups include laid back dress codes, more lenient office rules, and a heavy emphasis on finding a work/life balance. These factors can put employees in a better mindset and increase productivity as a result.


Job Security

Although new companies provide an array of advantages for their employees, job security continues to be a major risk of working for a startup. Since the business has yet to establish a foothold in the industry, the chances of failing are always looming.

According to Erin Griffith for Fortune Magazine, roughly nine out of ten startup companies end up failing before they even get the ball rolling. With such a high level of instability, it is important to thoroughly research the company before making any rash decisions. If you’re financially stable and can support yourself in case the business fails, it may be worthwhile to give it a shot. If the thought of the business tanking gives you anxiety, then maybe now is not the best time.

You should also take caution jumping from an established company with competitive benefits—including health insurance, workers compensation and paid time off—to a startup with only the bare minimum infrastructure in place. Make sure you read your offer letter thoroughly and that a new company can deliver on required and desirable non-salary benefits.

Pay is Minimal

If working for a startup is something you’re considering, getting paid less is something you may have to get used to. New companies are known for allocating as much of their revenues towards reinvestment as possible, so don’t expect a raise until the business starts showing some promise.

Some employees will accept a hit in their wages in hopes that they will be compensated sufficiently when the startup takes off. As mentioned above, however, the threat of failure is something that is always looming, and that long-term pay-off is not guaranteed.

More Responsibilities

The fewer people that there are in a company, the more responsibility that each employee faces. This is a rule of thumb for any startup you work for, so be prepared to perform tasks that aren’t strictly part your job description. Although some people see this as a learning experience, others view it as a burden.

Overall, it’s clear that there are both advantages and disadvantages of working at a new business. Depending on where you are with your current job, you may be considering getting a new job at a startup company. Before putting in your two weeks, think about the benefits and risks that come with the small business environment, and determine if you’re truly ready to live with both the pros and cons.



My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

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