What are risks of working for a start-up company?

If it's the reward potential of a start-up company you're after, you also must be willing to face the risk, just as the venture capitalists who back it. But unlike the venture capitalists who diversify, you're risking all of your career eggs in one basket. While some start-up companies are successful in the long run, many go under, run short on funds or overestimate growth. Your ground-floor opportunity may diminish or worse. You might even lose your job without receiving much in the way of severance, if anything.

A start-up company typically plans by the clock, not the calendar. It runs lean and mean. You'll probably wear several hats, work long hours, and fight many fires. Perks, benefits, salaries and raises may be limited. Instead, the start-up might offer risky incentives and so-called "sweat equity," which will likely be fruitless if the company does not profit within a few years. Dot-com start-up companies are particularly risky as competition increases and venture capital runs out. Many have failed, with more to come. Only the strong will survive. Get important promises in writing if you can, but of course, don't expect a money-back guarantee. Otherwise, at the first sign of trouble, they may axe you before paying your due.

The desirable, small-company, everybody-counts atmosphere will probably fade as the company grows, merges and makes acquisitions. You may eventually find yourself working yet again as just another cog in the wheel at an impersonal, corporate giant.

> What is a start-up company?
> What are rewards of working for a start-up company?
> What are risks of working for a start-up company?
> Where can I find start-up companies?
> Where can I find jobs at start-up companies?
> Interviewing with start-up companies