Skip to Main Content
HBS Online
  • Courses
    Open Courses Mega Menu
    • Business Essentials
      • Credential of Readiness (CORe)
      • Business Analytics
      • Economics for Managers
      • Financial Accounting
    • Leadership & Management
      • Leadership Principles
      • Management Essentials
      • Negotiation Mastery
      • Organizational Leadership
      • Strategy Execution
      • Power and Influence for Positive Impact
      • Leadership, Ethics, and Corporate Accountability
    • Credential of Leadership, Impact, and Management in Business (CLIMB)
    • Entrepreneurship & Innovation
      • Entrepreneurship Essentials
      • Disruptive Strategy
      • Negotiation Mastery
      • Design Thinking and Innovation
      • Launching Tech Ventures
    • Strategy
      • Strategy Execution
      • Business Strategy
      • Economics for Managers
      • Disruptive Strategy
      • Global Business
      • Sustainable Business Strategy
    • *New* Marketing
      • Digital Marketing Strategy
    • Finance & Accounting
      • Financial Accounting
      • Leading with Finance
      • Alternative Investments
      • Sustainable Investing
    • Business in Society
      • Sustainable Business Strategy
      • Global Business
      • Sustainable Investing
      • Power and Influence for Positive Impact
      • Leadership, Ethics, and Corporate Accountability
    • All Courses
  • For Organizations
    Open For Organizations Mega Menu
    • Corporate Learning
      Help your employees master essential business concepts, improve effectiveness, and expand leadership capabilities.
    • Academic Solutions
      Integrate HBS Online courses into your curriculum to support programs and create unique educational opportunities.
    • Need Help?
      • Frequently Asked Questions
      • Contact Us
    • Black, Latinx, and underrepresented minority professionals
      Pathways to Business

      Stories designed to inspire future business leaders.

  • Insights
    Open Insights Mega Menu
    • Business Insights Blog
      • Career Development
      • Communication
      • Decision-Making
      • Earning Your MBA
      • Entrepreneurship & Innovation
      • Finance
      • Leadership
      • Management
      • Negotiation
      • Strategy
    • All Topics
    • Sample Business Lessons and E-Books

      Gain new insights and knowledge from leading faculty and industry experts.

    • Free Guide

      Learn how to formulate a successful business strategy.

  • More Info
    Open More Info Mega Menu
    • Learning Experience
      Master real-world business skills with our immersive platform and engaged community.
    • Certificates, Credentials, & Credits
      Learn how completing courses can boost your resume and move your career forward.
    • Learning Tracks
      Take your career to the next level with this specialization.
    • Financing & Policies
      • Employer Reimbursement
      • Payment & Financial Aid
      • Policies
    • Connect
      • Student Stories
      • Community
    • Need Help?
      • Frequently Asked Questions
      • Request Information
      • Support Portal
    • Apply Now
Login
My Courses
Access your courses and engage with your peers
My Account
Manage your account, applications, and payments.
HBS Home
  • About HBS
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
HBS Online
  • Courses
  • Business Essentials
  • Leadership & Management
  • Credential of Leadership, Impact, and Management in Business (CLIMB)
  • Entrepreneurship & Innovation
  • Strategy
  • *New* Marketing
  • Finance & Accounting
  • Business in Society
  • For Organizations
  • Insights
  • More Info
  • About
  • Support Portal
  • Media Coverage
  • Founding Donors
  • Leadership Team
  • Careers
  • My Courses
  • My Account
  • Apply Now
  • …→
  • Harvard Business School→
  • HBS Online→
  • Business Insights→

Business Insights

Harvard Business School Online's Business Insights Blog provides the career insights you need to achieve your goals and gain confidence in your business skills.

 
Filter Results Arrow Down Arrow Up

Topics

Topics

  • Accounting
  • Analytics
  • Business Essentials
  • Business in Society
  • Career Development
  • Communication
  • Community
  • ConneXt
  • Decision-Making
  • Earning Your MBA
  • Entrepreneurship & Innovation
  • Finance
  • Leadership
  • Management
  • Marketing
  • Negotiation
  • News & Events
  • Productivity
  • Staff Spotlight
  • Strategy
  • Student Profiles
  • Technology
  • Work-Life Balance

Courses

Courses

  • Alternative Investments
  • Business Analytics
  • Business Strategy
  • CLIMB
  • CORe
  • Design Thinking and Innovation
  • Digital Marketing Strategy
  • Disruptive Strategy
  • Economics for Managers
  • Entrepreneurship Essentials
  • Financial Accounting
  • Global Business
  • Launching Tech Ventures
  • Leadership Principles
  • Leadership, Ethics, and Corporate Accountability
  • Leading with Finance
  • Management Essentials
  • Negotiation Mastery
  • Organizational Leadership
  • Power and Influence for Positive Impact
  • Strategy Execution
  • Sustainable Business Strategy
  • Sustainable Investing
Subscribe to the Blog
*
Please complete this required field.
Email must be formatted correctly.
Please complete all required fields.
RSS feed

Filters

Topics

Topics

  • Accounting
  • Analytics
  • Business Essentials
  • Business in Society
  • Career Development
  • Communication
  • Community
  • ConneXt
  • Decision-Making
  • Earning Your MBA
  • Entrepreneurship & Innovation
  • Finance
  • Leadership
  • Management
  • Marketing
  • Negotiation
  • News & Events
  • Productivity
  • Staff Spotlight
  • Strategy
  • Student Profiles
  • Technology
  • Work-Life Balance

Courses

Courses

  • Alternative Investments
  • Business Analytics
  • Business Strategy
  • CLIMB
  • CORe
  • Design Thinking and Innovation
  • Digital Marketing Strategy
  • Disruptive Strategy
  • Economics for Managers
  • Entrepreneurship Essentials
  • Financial Accounting
  • Global Business
  • Launching Tech Ventures
  • Leadership Principles
  • Leadership, Ethics, and Corporate Accountability
  • Leading with Finance
  • Management Essentials
  • Negotiation Mastery
  • Organizational Leadership
  • Power and Influence for Positive Impact
  • Strategy Execution
  • Sustainable Business Strategy
  • Sustainable Investing
Subscribe to the Blog
*
Please complete this required field.
Email must be formatted correctly.
Please complete all required fields.
RSS feed

Joining a Startup? Here’s What You Need to Know

Young Professionals Working at a Startup
  • 04 Jun 2019
Lauren Landry Author Staff
tag
  • Career Development
  • Entrepreneurship & Innovation
  • Entrepreneurship Essentials
  • Launching Tech Ventures

The thought of joining a startup can be enticing. For some, it’s the autonomy and freedom to experiment with new ideas that lures them in. For others, it’s the more collaborative, casual environment and opportunity to work alongside like-minded peers passionate about entrepreneurship.

But making the choice isn’t always easy. Is a startup the right fit, or would you be better-suited for a corporate environment? If you’re contemplating a career change or mulling over a new position, here are five factors to consider before joining a startup.


Free E-Book:
So You Want to Be an Entrepreneur: How to Get Started

Access your free e-book today.

DOWNLOAD NOW

What You Need to Know Before Joining a Startup

1. Early Employees Create the Culture

When you join an established organization, the culture is more immediately apparent. Values have been defined and refined over the years and, if executed successfully, permeate the company, informing how employees interact, solve problems, and collaborate.

At a startup, the early employees are the culture. The founders’ personalities and values influence daily operations. With every new hire and decision made, the culture slowly starts to form, and whenever a founder chooses to pursue or ignore an initiative, they’re sending a signal to employees about what they think will help the organization achieve its mission.

Before deciding to join a startup, make sure your vision and values align with the founders’. If not, it’s likely the company culture won’t be a fit. Some startup employees are expected to work long hours with less pay, making work-life balance scarce. To counter this, you need to know the work will be meaningful and engaging.

Related: 11 Questions to Ask Before Joining a Startup

2. Your Financial Future Is Uncertain

If your paycheck came late, would you be prepared? The reality is, depending on the startup’s stage, you might not get paid on a regular schedule.

There are various methods founders can use to secure startup funding, each of which can impact employees’ ability to receive regular paychecks. It’s important to familiarize yourself with these methods before joining a startup so you’re aware of how financially secure you’ll be before joining.

According to the online course Launching Tech Ventures, financing methods include:

  • Bootstrapping: Founders using their own capital to finance their venture
  • Venture capital (VC): VC firms offering financial support in return for equity
  • Friends and family: Founders relying on financial support from friends and family members
  • Angel investors: Wealthy investors supporting a startup’s objectives at their own expense
  • Incubators and accelerators: Firms offering guidance and support for early-stage startups

Each method offers its own risks to employees and the overall venture. It’s also important to ask:

  • Is there a plan to fundraise?
  • How much capital do the founders need?
  • Who are the investors they’re working with?

You should have the answers to these questions before accepting a position, so you can better gauge the risk.

If you have savings in place, the opportunity might be worth it since a successful venture can result in significant long-term gains, especially if the company offers you equity. It’s important, though, to determine what you can and can’t live without, as your financial future is more uncertain.

Entrepreneurship Essentials | Succeed in the startup world | Learn More

3. The Benefits May Vary

Salary is only one of the benefits to consider. You might be offered equity, or a stake in the company, to augment your pay. If you are, carefully read the terms and conditions. It’s important to know the total number of shares outstanding—not just what you’re being offered—so you can get a true picture of how much of the venture you’d own.

Equity is granted in different forms, including

  • Stock options: Allows you to buy shares at a predetermined price
  • Restricted stock units: Typically subject to a vesting schedule that determines when you’re eligible to earn equity and often requires you to stay at the company for a certain number of years

If you’re working for a startup you’re confident will achieve long-term success, then equity can be an enticing perk. If the startup’s exit strategy isn’t defined or the future of your industry is unclear, negotiate instead for health insurance—another benefit some startups might forego until they’re profitable.

It’s important to know your non-negotiables before joining a startup. Is there a certain salary threshold you need to hit, or can any gaps be offset by equity? The benefits vary by startup, so understanding your priorities will help you determine whether you’re making the right next step.

Related: 5 Key Pieces of Advice for Aspiring Entrepreneurs

4. Adaptability Is Key

If you prefer process and structure, a startup environment might not be for you. Startups have limited resources, which means employees typically need to tackle work outside the scope of their job description.

For those who thrive in ambiguity and can easily adapt to change, this is a plus. Joining a startup offers you the opportunity to gain new skills and explore different functional areas you might otherwise not have exposure to working at a larger firm.

5. This Will Be a Risk

By joining a startup, you’re ultimately taking a risk. Roughly 90 percent of startups fail—10 percent within a year. Although daunting, there are several potential rewards. Not only will you gain new skills, but you’ll learn about entrepreneurship and develop a deeper understanding of what it takes to build a company from the ground up.

It’s important to acknowledge the risk and do your research. Look into the founders’ background and track record. Is this their first startup? Do they have the strategic vision needed to take the company to the next level?

From there, analyze the industry. Are there opportunities to disrupt the status quo, and is this startup positioned to make a significant impact? If so, joining could be the right choice for your career.

Which HBS Online Entrepreneurship and Innovation Course is Right for You? | Download Your Free Flowchart

How to Join a Startup

If joining a startup sounds exciting, it’s crucial to know how to join a company that fits your professional goals.

Your professional network is a critical tool to help find and secure a startup job. Your network can be made up of friends, family, former classmates, colleagues and teachers, and professionals you meet in online learning communities. For instance, the HBS Online Community is a global network of professionals interested in expanding their business knowledge. By contacting peers in industries of interest or messaging entrepreneurs with inspiring success stories, you can establish yourself in a highly niche space.

Remember, while joining a startup might be a risk, it’s a chance that could pay off. You never know—you could end up working for the next Airbnb or Netflix.

Are you interested in joining a startup, but want to better understand the ins and outs of entrepreneurship? Explore our online courses Entrepreneurship Essentials and Launching Tech Ventures, and learn how to navigate the complex startup world. Not sure which course is right for you? Download our free flowchart.

This post was updated on September 26, 2023. It was originally published on June 4, 2019.

About the Author

Lauren Landry is the director of marketing and communications for Harvard Business School Online. Prior to joining HBS Online, she worked at Northeastern University and BostInno, where she wrote nearly 3,500 articles covering early-stage tech and education—including the very launch of HBS Online. When she's not at HBS Online, you might find her teaching a course on digital media at Emerson College, chugging coffee, or telling anyone who's willing to listen terribly corny jokes.
 
All FAQs

Top FAQs

How are HBS Online courses delivered?

+–

We offer self-paced programs (with weekly deadlines) on the HBS Online course platform.

Our platform features short, highly produced videos of HBS faculty and guest business experts, interactive graphs and exercises, cold calls to keep you engaged, and opportunities to contribute to a vibrant online community.

Are HBS Online programs available in languages other than English?

+–

We expect to offer our courses in additional languages in the future but, at this time, HBS Online can only be provided in English.

All course content is delivered in written English. Closed captioning in English is available for all videos. There are no live interactions during the course that requires the learner to speak English. Coursework must be completed in English.

Do I need to come to campus to participate in HBS Online programs?

+–

No, all of our programs are 100 percent online, and available to participants regardless of their location.

How do I enroll in a course?

+–

All programs require the completion of a brief application. The applications vary slightly from program to program, but all ask for some personal background information. You can apply for and enroll in programs here. If you are new to HBS Online, you will be required to set up an account before starting an application for the program of your choice.

Our easy online application is free, and no special documentation is required. All applicants must be at least 18 years of age, proficient in English, and committed to learning and engaging with fellow participants throughout the program.

After submitting your application, you should receive an email confirmation from HBS Online. If you do not receive this email, please check your junk email folders and double-check your account to make sure the application was successfully submitted.

Updates to your application and enrollment status will be shown on your Dashboard. We confirm enrollment eligibility within one week of your application.

Does Harvard Business School Online offer an online MBA?

+–

No, Harvard Business School Online offers business certificate programs.

What are my payment options?

+–

We accept payments via credit card, wire transfer, Western Union, and (when available) bank loan. Some candidates may qualify for scholarships or financial aid, which will be credited against the Program Fee once eligibility is determined. Please refer to the Payment & Financial Aid page for further information.

We also allow you to split your payment across 2 separate credit card transactions or send a payment link email to another person on your behalf. If splitting your payment into 2 transactions, a minimum payment of $350 is required for the first transaction.

In all cases, net Program Fees must be paid in full (in US Dollars) to complete registration.

What are the policies for refunds and deferrals?

+–

After enrolling in a program, you may request a withdrawal with refund (minus a $100 nonrefundable enrollment fee) up until 24 hours after the start of your program. Please review the Program Policies page for more details on refunds and deferrals. If your employer has contracted with HBS Online for participation in a program, or if you elect to enroll in the undergraduate credit option of the Credential of Readiness (CORe) program, note that policies for these options may differ.

 

Sign up for News & Announcements


  • • Please complete this required field.
  • • Email must be formatted correctly.
  • • Please complete all required fields.

Subject Areas

  • Business Essentials
  • Leadership & Management
  • Entrepreneurship & Innovation
  • Strategy
  • Marketing
  • Finance & Accounting
  • Business & Society

Quick Links

  • FAQs
  • Contact Us
  • Request Info
  • Apply Now
  • Support Portal

About

  • About Us
  • Media Coverage
  • Founding Donors
  • Leadership Team
  • Careers @ HBS Online

Legal

  • Legal
  • Policies
Harvard Business School
Copyright © President & Fellows of Harvard College
  • Site Map
  • Trademark Notice
  • Digital Accessibility