TheRodinhoods

Should aspiring entrepreneurs work for a startup or large company before doing their own startup?

I think it is a good idea for aspiring entrepreneurs to get some experience of working with a startup as well as some experience of working in a large company.  

Here’s why: Working with a startup and working with a large company offer very different learnings and experiences for an aspiring entrepreneur. 

For example, working in a startup helps an aspiring entrepreneur understand how to make things work in a resource constrained environment, how to hire people when you are not a known brand, how to be flexible and nimble, etc. Working on a startup also helps aspiring entrepreneurs understand how business models evolve, how a gradual ramp-up is implemented, how a business plan has to be adjusted, how quickly things can change… and how assumptions are tested and hence, adjustments made in goals, strategy and implementation plans.  

On the other hand, working in a large company helps aspiring entrepreneurs learn about the power of processes and systems, the challenges of working at scale, the way to handle HR issues when there are multiple layers in an organization when, unlike a startup, you don’t know your colleagues by name. Working in a large company also teaches aspiring entrepreneurs about business focus, being goal & objective oriented and about increasing profitability. 

In effect, both environments – large company and startups – offer experiences that are varied and very useful when you yourself will start your own venture.