Is Joining Startup really a RISK?
The single biggest factor that comes into being when you ask people to join a startup is - RISK! In my last one year I have faced this question both from people around me and from people whom I talked while trying to set up a team for my venture.
Weather its fresh graduates from IIT's, NIT's or people working in big corporates - people are a lot worried about their career. I myself failed to understand what people actually meant by a career? Is it the renumeration, is it that you can say to someone that I am working for a big corporate like IBM or Microsoft or what else do they mean by career?
I believe people don't themselves understand by the term "career". They look from a short term perspective and haven't ever thought what they want to do in long term. A person makes his own destiny and its the journey, the path that should be more exiciting then the end result.
When I am faced with this question, what made you jump into this? Why did you take such a big risk? My answer is I think there is NO risk at all. And if any to the minimum. My perspective to this question is "What's the worst situation I can be in ?" May be I loose out on money, spent months on something which didn't work, may be at the end I don't have a job. I can't think of a more worse situation, if you can please do let me know..
On the other hand, any one who joins a startup will have steep learning curves both in technology and management, see how small startups need to work, how product has to be conceptualized, developed, deployed. Everyone in the team works for that. One enjoys the journey which might be bitter at times. Experience and the work that one learns, I think a corporate environment lacks that dynamism. So you can learn in 6 months what you will do in an year or even two within a big company.
So Where's the loss?
If startup worked, you would reach a prominent position. Will gain all the attention. Even if it didn't work, you will be more bold than before, will have more experience than others, will rise ahead from your peers. And getting job is never a problem, atleast the way current job market is moving in India.
So where's the Risk? I think its just no risk at all, spending a part of your life doing interesting stuff.
I remember once I was talking to this American lady in front of me, standing at the luggage check in queue at the IGI Airport. She was I guess a teacher and a painter by profession. She said you Indians are a lot lucky, you have such a strong family background especially financial stability provided by family networks. There in america, once you are 18 you are independent and you have to think all by yourself. She told me about an indian guy in america whose mother had come to US and used to prepare all meals, bedding etc. for the guy, while the guy studied hard for his exams. Americans, she said are a lot insecure.
My response was, although Indians have strong family traditions but the same traditions make them less matured and mentally weaker. My personal belief is people in US or Europe are mentally more stronger than Indians and take more risks. On the contrary, the strong family background should have made Indians taking more risks! It might be I am just looking at a small spectrum of people, but that's what I got when talking to engineers in my last 1 year.
I would just like to give this message, do innovative work wherever you go. Even if its not your own startup, join a startup so that when you do your own startup, you don't make the same mistakes. So its everything to gain and nothing to loose.

13 Comments:
I couldn't agree more with what you're saying, but you're missing the point that the Indian society is slowly transforming. And the most significant changes out of all the hubbub you see around you are invisible. They are creeping in slowly, quietly... in people's minds - you can't see the water boiling yet, but the tiny particles under the surface are beginning to get excited. Trust me my friend, the moment is not far away, it's not.
The wave that caught you and me, is going to catch many others. It's hard for a society that has just recently emerged out of the clutches of socialism to grasp (forget utilize) all the freedom and opportunities that capitalism brings. For years, the people that strived for that ever-elusive civil servant job are now looking at IT and other avenues, people are taking the risk of leaving a so-called secure government job and working for the corporate sector where they actually might get laid off. The series of lay-offs during the dot-com bust didn't scare people back to secure government jobs - and that very fact gives me hope.
Societies don't transform overnight and often it can be frustrating for those that lead the change. You have to remember that for the 100 people you can't convert, the one person you can actually can, will convert another one and another one and another one. And one day someone will talk about the tipping point in social transformations.
So, hang on and watch and lead the change and one day you'll see the balance tip to your side.
A good 25 year techie commands 7-8 lakhs. A startup cannt offer this much salaray. This not only kills the initiative of joining a startup but also starting one.
After workin in all high rises in India and US when I told my mom that my next office is in a garage. She thought her son has gone crazy.
The above two points indicate the biggest problem a person when he thinks of embarking on such a journey. A change of mindset is required and that will take time.
Btw we are 2 guys planning a startup in Hyderabad. We need people.
Sunil,
You have hit the right spot Sunil. Sometimes I really want to find answer to this question: why Indians lack ambition and entrepreneurship. Out here I am trying to find people for my start-up and there is hardly any motivation from any side. I have few really intelligent friends, but last thing they want to do is be a part of start-up. They just don’t want to take any risk. As soon as I start talking about the idea they want to switch the topic, or it becomes a one-sided conversation. It makes me whether I am thinking in the wrong direction, but still I move on.
Lets take a case of someone who is 25 years old, and by now, going by Indian education system he should have 3 years of job experience and his/her 4 year degree. Now I think if you are 25 you have lot of time in your life to take risk and earn money(at least another 40 years-remember you retire at 65 in US). Lets say you start working on a start-up project, conceptualize it and then really slog day-in day-out to implement it, overall spending 2 year of your life. After this hard work either you will be a millionaire or if the idea is a failure you might be able to get a new job with all that you learnt in the last 2 years. You will still end up in a better position whatever the outcome is. I have seen friends and family members who are willing to waste 2 years on a masters degree which will hardly adds any value to their experience, especially MBA, which is results only in a paper document once you are done with it.
Another problem arises from the people working for all the outsourcing companies especially TCS and Infosys. These guys are made to work so hard and long that they hardly get any time for themselves, what to talk about start-ups. Sooner or later they get used to the salary and stable life, and just want to carry on with it. Its just like out parents working for Government of India, they people work for Government of Outsourcing, never even thinking about switching their jobs for better options. They settle into long-term Software Maintenance projects and are happy going about it.
Overall I think tougher conditions make people more productive. Most of the Indian people don’t know that or don’t understand. Out here in US, if you don’t earn for a month you wont have the money to pay rent and other stuff in the next month. So you always have to be on your toes and lookout for opportunities. But in India, even if one person is earning, the whole family can survive, although not in the best of conditions. Another reason is Necessity. Just take the case of automobiles. US is the number 1 manufacturer of automobiles and India is no where in the automobile market. Why is that? Couple of the reasons I can think of are: Size of the country(US ) and the weather. Given the long distances and extreme weather conditions in US, people out here wanted to have better ways of commuting instead of walking or riding a horse. So they invented automobiles. Now take the case of India. India being a smaller country with more population, and people generally averse to moving out of local area, and weather being nice for most part of the year(at least not extreme cold), it never lead to a root level movement in people to try and improve their commuting problems. Off course I know there will be thousands of other reasons for this big difference especially British Rule.
This discussion can go on for long, but the fact is that we need to change out attitude before it is too and another generation goes by without achieving. We need to work hard and restore India’s glory.
-Vivek
Very true... But what if a fresher joins a startup where the pay is mush above average industry standards? This is something dogging me. I have two offers, one a startup and the other an established organisation. Which to choose? The startup pays more, but is it wise?
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Yes, this is a very interesting conversation here.As Rajat says he need people in Hyderabad, my brother is a fresher, he is a software Eng. with java developer skill set ,He is very energetic,He wants to work in a start up company.He might be interested, can you let me know when you will start hiring? Another question What is the best way to look for Job when some body is a fresher in India? Thanks.
9:26 PM
I am also interested to talk to Rajat more about the startup planned. I am interested to work in a new venture. You can contact me on sivasun@gmail.com
There are different types of "risks". An Indian in the US who is working on H1-B cannot afford not to have a job, even for 10 days: s/he has to leave US within 10 days after losing the job. This is probably the only factor that would affect ones decision not to join a start-up in the US. After people have green-cards, it is indeed very common for them to work for start-ups since they pay more: however some choose not to just for a more relaxed/predictable work schedule.
what if the company wont work well in future??? what if company wont get enough projects in future?? what if the projects currently company is doing will fail??
And then u will be a part of a failed comapny...
and getting a job after a failure is tagged into your CV , is not that easy...
one soluton is Start up should hire less ppl initially but very very technically sound ppl..should pay them very very high to keep them motivated..( this is must to attract good talent) .
Hi Sunil,
I do agree to most of the points except the last point.
.......... There in america, once you are 18 you are independent and you have to think all by yourself. She told me about an indian guy in america whose mother had come to US and used to prepare all meals, bedding etc. for the guy, while the guy studied hard for his exams. Americans, she said are a lot insecure.
My response was, although Indians have strong family traditions but the same traditions make them less matured and mentally weaker."
=======================
I heard the same thing from an NRI(I dont remember the name) who has started 3 ventures and who was in the BarCamp Bangalore.He told the same thing and this was his justification "Since Indians have their parent's support so they can think of doing something(provided they have the risk taking ability) since they dont have to worry about their food,bedding etc.".This is very important and this will also help in starting your own venture.
As far as "Indians are considered,there are many notable Indian entrepreneurs like Sabeer Bhatia,Jerry Rao,KV Kamath,Vinod Khosla,Bose of Bose Corp,Desh Deshpane of Sycamore and many more'
So this ability does not come from the nationalism but varies from individual to individual.Even there might be many Americans that might not be risk taking.Hence,we cannot generalize this point.
Do check my blog as well.
-Himanshu
(I'm blogging at http;//thoughtsprevail.blogspot.com)
Sunil hats off to you,contact me on zulu_bharat@yahoo.com.I am embodiment of what you have written.
"Jab naav dhaara mein choud di,aur toofano mein mod di de di chunoti sindhu ko toh dhaar kiyaa majhdaar kiya"
Regards
Hey Guys,
I am so excited to see a post (and a lot of discussion) on startups from Indians. I am an Indian myself, in the U.S working for a startup dotcom. I'd say that we are just not cut out from childhood to take risks due to economic and social hardships we face. If I were to do the same thing in India, people would think I am a loser and I am crazy. BTW, some people in U.S also think the same when I tell them I work from home. They just don't get the whole idea of you getting an opportunity to work on something cool. No company was ever big, they all started in garages and homes. Look at Microsoft , IBM and Google (started in stanford dorms). So someone did something and took a risk, and now you can see the results. I am not saying that you should join a startup because you could be a millionaire next year, but join one to learn and innovate.
Keep up the spirit, and join a startup. But, HEY, you should be careful. Look at the product, the idea, the market size, the exit strategy, the CEOs resume, are there any VCs waiting for the prototype for them to pour some money in? These are some questions you should ask yourself.
@rajAT...
U said u r looking for ppl for ur venture....... is it software based or somethiing else? I am looking for startup.... mail id pintooaraj@gmail.com
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