Founder VS Joiner: How to decide | Erika Batista, VP of International at On Deck

TL;DR

Choosing between being a founder and an employee requires careful consideration of factors such as autonomy, vision, alignment, and risk.

Transcript

when when things get tough you know as a founder like everything falls back on you like the really tough decisions is that something that you thrive on so to start the discussion i thought you know i would bring up some of the uh common reasons i hear for people wanting to start a company uh and so for me these are you know the kind of fake differe... Read More

Key Insights

• ❓ Founders answer to multiple stakeholders, including employees, investors, customers, and the community.
• 🛩️ Small teams in startups are not meant to remain small and need to scale for success.
• 😃 Impact can be achieved in various ways beyond starting a company, such as working for a big company or being involved in NGOs.
• ☄️ Starting a company comes with significant risks, and financial success is not guaranteed.
• 🙃 Joining a successful company provides a calculated risk and potential financial upside.
• 🥺 Building a company for the sake of a resume can lead to failure, as genuine motivation is essential for success.
• 📺 Autonomy, vision, alignment, and risk are crucial considerations when deciding between being a founder or an employee.

Questions & Answers

Q: Is it better to be a founder or an employee for autonomy and career development?

In early-stage companies, autonomous individuals tend to succeed, as there may not be established structures for career development. Early employees often have more visibility and can take on various opportunities for growth.

Q: How does working for a big company compare to starting a startup in terms of impact?

While starting a company may provide a sense of impact, employees who innovate within big companies can have a significant impact on the world with successful products or services. Joining a company that already has distribution and scale can amplify impact.

Q: Is it worth starting a company for the potential financial upside?

Starting a company comes with significant risks, and the majority of startups fail. Joining a company that has shown early success allows for a calculated risk and the chance to participate in the upside.

Q: Does starting a company look impressive on a resume?

Starting a company just for the sake of it looking good on a resume is not a valid reason. Building a company is challenging, and if the motivation is not genuine, the chances of success are lower.

Summary & Key Takeaways

• Many people are attracted to the idea of being their own boss as a founder, but in reality, founders answer to employees, investors, customers, and the community.

• The desire to work in small teams may not align with the goal of scaling a startup quickly, as small teams are not meant to remain small.

• While starting a company may provide a sense of impact, there are many other ways to make a difference in the world without going through the challenges of entrepreneurship.

• The idea of becoming rich may motivate some to start a company, but the reality is that the majority of startups fail, making joining a successful company a better option for financial success.

• Starting a company just for the sake of it looking good on a resume is counterproductive, as building a company is a difficult and stressful endeavor.