Back in 2021, while at London Business School, I participated in INSEAD’s Product Games, a hackathon geared towards product managers. Our team was fortunate enough to have a mentor, a seasoned professional who was at PayPal at the time but had a rich history in the startup world. I had a fascinating conversation with him, and his insights resonated deeply, particularly in validating my own reasons for not immediately jumping into a startup, even amidst the growing disillusionment with corporate life we’ve seen in the last decade.
He offered a rather pragmatic perspective, highlighting what startups might not be ideal for:
Not necessarily the best for:
- Accumulating wealth: While the allure of striking it rich is often associated with startups, the reality, he suggested, is more nuanced.
- Private options: The value of private stock options can be highly speculative and often doesn’t translate into significant personal wealth for most early employees.
- Uneven distribution: Typically, the lion’s share of the financial rewards, if any, tends to accrue to the founder(s) and early co-founders, with the broader team often seeing little to no substantial financial gain.
- Deep specialization: Startups often require a more versatile skillset, which can mean less focus on a specific area of expertise.
- Role fluidity: Being a Product Manager at a startup can often entail wearing many hats. You might find yourself juggling account sales or customer support alongside core PM responsibilities, rather than specializing in a niche like “growth marketing PM.”
However, he also pointed out the compelling advantages that the startup environment can offer:
Potentially beneficial for:
- Industry or role pivots: The dynamic and often less rigidly defined structure of a startup can provide a unique opportunity to transition into a new industry or take on a different type of role.
- Developing people management skills: The rapid growth and smaller team sizes in many startups can offer early exposure to managing and leading teams.
His insights provided a valuable counterpoint to the often-romanticized narrative surrounding startup life, offering a more grounded perspective on the potential trade-offs involved.