Why It’s a Good Idea for Developers to Work with Startups Instead of for Them

The thrill, innovation, risk—and above all, the reward! If you work with a startup, these concepts are likely familiar, as is the roller coaster of experiences – both ups and downs – that come with launching a new company. And while there are many advantages to working with a startup, it’s not for everyone. The appeal may seem obvious, but many startups fail to get off the ground, and balancing the pros and cons can be a challenge.

What if I told you, it’s possible to get the best of both worlds – to capture the advantages of working with a startup while mitigating the downsides?

Why Would You Join a Startup?

Many developers are attracted to startups because of the opportunity to be part of something from the ground up, creating something entirely new and helping shape an organization’s future. This dynamic helps lead to greater job satisfaction and fulfillment because people feel attached to something bigger than themselves, and they can clearly see where their contributions have made an impact.

In fact, a whopping 60% of startup employees reported job satisfaction, compared to a meager 30% reporting happiness while working for larger institutionalized companies in tech industries.

Part of this satisfaction comes from the opportunity to try on many hats and learn diverse new skills as the company scales. This contrasts with working in a larger, more established company where you might stay in the same role for years.

For example, it’s not unusual for startup employees hired for marketing to jump into the role of an office manager, or for workers in any position, including tech development, to have to learn to successfully balance different roles, from finance to sales and even visionary leadership.

While challenging, this exposure to multiple roles can help you learn new skills and grow your career more quickly than at a larger company.

Startups also help you build leadership skills

In larger companies, most employees often have very limited or no access to the leaders of the company. In some cases, you may not even meet the CEO. But in a startup, you can actually access leadership and may even be able to bounce ideas directly off the CEO. This can boost morale and productivity and provides access to mentorship from leaders in the company, which can help workers grow.

By providing an ideal environment to take risks in, startups also help employees develop leadership skills through trials, tribulations, and hard-won experiences.

Learning to be a leader in a startup requires embracing the fact that you will make mistakes and learn from them. If you adopt this growth mindset in a small group with a fledgling company, your team will likely catch mistakes early, so you can rectify them quickly and learn from them before it’s too late to change.

Because of the smaller, collaborative team dynamic startups supply, you will also work in nearly every role the company requires, enabling you to gain leadership experience daily, and empathy for every position you may be expected to lead someday.

Cool Company Cultures and Perks

Due to their disruptive nature, startups tend to attract like-minded people. This creates a unique company culture based on innovation, creativity, and risk-taking.

One of the best advantages of working with a startup is coming forward with ideas and being supported through the creative process. With a smaller team, there’s usually a greater need and support for new initiatives than in larger companies.

And while the small nature of startups means funding is limited, these companies and the firms that work with them also require the best talent to succeed and offer many meaningful perks to attain this talent, such as the ability to work from home, paid health insurance for employees and their families, reimbursement for professional events, travel assistance and training opportunities.

These benefits, which you may also find in bigger organizations, are also often bolstered by some very unique perks offered by grassroots companies to make the environment more fun.

Lastly, working with a startup can provide you with an incredible networking opportunity. Startups are often connected to industry professionals who can help them succeed. These connections can also benefit you, opening doors for future opportunities.

More Innovation and Greater Impact

If you thrive on creative thinking and innovation, then working for a startup can be the right choice. Startups are about thinking outside the box and coming up with new, innovative solutions to problems and shared vision.

Per the Harvard Business Review: “experience alone does not make a team successful–soft skills, such as ‘entrepreneurial passion’ and ‘shared strategic vision’ are also required.’”

This commitment to innovation and shared vision can have a meaningful impact on an industry and the world, with some arguing the collective value created by new ventures rivals the entire GDP of a G7 economy.

The impact is not only measured in dollars but in how innovative changes can improve millions of lives. One example of this is one of our Commit clients, Watergen. This game-changing environmental company leads the charge in developing clean water solutions by creating water from the atmosphere.

Through working with Watergen, Commit has seen firsthand the changes one visionary company can have on billions worldwide. The possibilities are limitless. If you want to leave your mark on the world as Watergen has done, then working for a startup is for you.

The Risks of Working for a Startup

While the benefits of working with a startup are enticing, there are also many risks that must be considered when taking an in-house gig at one.

• 20% of startups fail in their first year!
• 90% of startups fail, with many closing before launching their solution.
• Only 40% of startups actually turn a profit, meaning there is very little job security and even a chance you may not receive your paycheck.
• More than 110,000 startup and tech employees have been laid off in 2022 alone, with many fast-growing companies scaling back.

The bottom line is that both startups and the tech industry are highly volatile, and even if you think a company is a groundbreaking disruptor with something to offer, anyone joining a hi-tech startup should recognize that their job or company is not a guarantee.

Reaping Rewards Without the Risk

If the perks of working with a startup excite you, but concerns are holding you back, I have good news: it’s possible to reap these rewards (and more) without the risk.

There’s a growing number of software development firms today that specialize in supporting startups, presenting an ideal opportunity for developers and tech specialists to capture the best of both worlds. While the business models and services may vary among these firms, they can provide the opportunity to work within their startup clients’ teams – delivering all the same benefits a traditional employee would receive, while mitigating the risks of working for a startup.

For example, an in-house developer will often lose their job if a startup fails to launch, runs out of funding, or no longer believes a role is necessary. A third-party software development partner, on the other hand, can quickly reallocate these employees to other projects and clients, ensuring job security and a steady paycheck regardless of emerging challenges and economic conditions.

Importantly, many startups are increasingly outsourcing these roles to software development firms, and this trend will only continue to grow. A recent study from Commit found that software development outsourcing will grow by 70% between 2022 and 2023, a sign that outsourcing is becoming an increasingly important strategy among startups.

So, if you want to experience the excitement and camaraderie of a startup culture, while minimizing your risk, consider working with – not for – a startup. It’s the best way to experiment in multiple startup environments and on many new innovations, without needing to job-hop every few months.