Business Education

Pros and Cons of Working for a Startup

There are pros and cons of working for a startup — everyone knows this. But, it’s the actual realities versus the imaginary which cause a lot of undue anxiety and stress. Of course, it’s only natural to feel a bit uneasy about joining a fledgling organization. Even if it’s a great idea and a wonderful team of individuals, there are still up and downsides of working for a startup.

Cons of Working for a Startup

Let’s begin with the downsides first. It’s certainly no secret that salary is a huge concern. Often, what you’re paid is either low or in some circumstances, it’s “sweat equity.” Even if there’s an acceptable salary, there’s the real possibility your job description will contain a whole host of duties. In such an environment, it’s quite common for specialists to become jacks of all trades.

Working for a startup can involve a lot of risk, that’s no secret; according to the Wall Street Journal, three out of every four startups fail. In fact, there are startups funerals in Silicon Valley where CEOs can highlight the demise of their defunct companies and ruminate on any mistakes made. But that doesn’t mean taking a job with a startup – even one that ultimately fails – won’t allow you to gain valuable experience and skills to add to your resume. —Monster.com

Then, there’s the real possibility of working with less. It isn’t unheard of to have little to practically no resources at your disposal. Of course, one of the most common downsides of joining a startup is those long, irregular hours. Finally, there’s the real risk of untimely failure or an inescapable decline toward failure.

Pros of Working for a Startup

Obviously, it’s not all bad news. (If it was, no one would ever even consider working for startups. In fact, startups might not exist.) So, here are the upsides for working for a startup:

A potential huge ROI. We’ll begin with the ultimate enticement — a gigantic payout. After all, isn’t this why startups get going in the first place? And, there’s certainly no shortage of examples out there to showcase big-time successes.
Big gain in experience. Okay, let’s suppose you just earn a good salary and don’t hit the entrepreneurial lottery. You’ll gain a whole lot of experience during your journey that’s probably not available anywhere else.
Making new connections. Another advantage of joining a startup is your ability to make new connections. You’ll meet a host of people in different roles which can really expand your professional network.
The intangible excitement factor. It’s not just all about money and experience. There’s also the excitement of an unknown journey. It’s all wrapped up in a whirlwind of circumstances and emotions.

What other factors would you say play into joining a startup? Please let others know about your thoughts and experiences by commenting!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Managers should Avoid these Phrases to Avoid Killing Employees’ Trust in Their Leadership

May 5, 2022 No Comments

When it comes to the workplace, trust is key. Employees need to trust their managers in order to feel comfortable taking risks and be productive. Managers, in turn, need to trust their employees in order to delegate tasks and give them the freedom to make decisions. Unfortunately, many managers say things that damage this trust relationship. So, let’s discuss five of the most common phrases that managers use that kill employees’ trust. Words can Speak Louder than Actions Managers should avoid the following phrases in order to maintain a trusting relationship with their employees. Trust is essential for a healthy workplace and these phrases can damage that trust relationship. Employees need to feel comfortable coming to their managers with questions and concerns, and they need to know that their manager will be open and transparent with them. The employee-manager relationship is one of the primary components to a strong organizational structure. Employees rely on their managers for career development and guidance on how to improve their skills. One of the elements of a successful employee-manager relationship is trust. When the sense of trust is strong between an employee and manager, it adds efficiency to other elements of workplace productivity. —Houston Chronicle Small Business When managers use these phrases, it sends the opposite message. It makes employees feel unimportant and disregarded. It creates uncertainty and frustration, which leads to a lack of trust on the part of the employees. And that, of course, results in a negative impact on morale, productivity, and overall company culture — three poison pills that can cause actual, long-lasting damage. Five Phrases Managers should Avoid to Avoid Destroying Employee Trust We’ve all heard the age-old wisdom about sticks and stones breaking bones but words never inflicting harm. Of course, this philosophy is entirely contextual because we all vividly remember instances when words cut deep. While these phrases aren’t intended to insult or hurt, they nevertheless undermine your authority, respect, and relatability. So, avoid using the following phrases because they will slowly kill employee’s trust: “I’m the boss, I don’t have to explain my decisions.” This phrase is incredibly damaging to trust. Employees need to feel like they can come to their managers with questions and that their manager will be open and transparent with them. When a manager uses this phrase, it sends the message that the employee is not valued and that their opinion does not matter. It also makes the manager seem like they are hiding something. This can lead to employees feeling uncomfortable coming to their managers with questions or suggestions, which can hurt productivity and morale. “I’m too busy to deal with this right now.” This phrase often comes across as dismissive and unprofessional. It sends the message that the employee’s concerns are not a priority and that their manager is too busy to deal with them. This can make employees feel unimportant and disregarded. It can also lead to them feeling like they are not able to come to their manager with problems or concerns, which can hurt morale and productivity. “I’ll get back to you.” This phrase often comes across as ambiguous and frustrating for employees. Employees want to know what is going on and they want answers from their managers. When a manager says this phrase, it sends the message that the employee is being ignored and that their question is not important. It also creates uncertainty, which can lead to employees feeling anxious and stressed. “I’m not sure, let me check on that.” This phrase is often used as a way to avoid making a decision or taking responsibility. It sends the message that the manager is not capable of making decisions and that they are not in charge. This can make employees feel like they are not being taken seriously and that their concerns are not important. It can also lead to frustration and a lack of trust on the part of the employees. “That’s not my job.” This phrase communicates that the manager does not care about their employees or their job responsibilities. It sends the message that the employee is unimportant and that their job is irrelevant. This can lead to employees feeling unvalued and unmotivated. It can also cause them to feel like they are not able to come to their manager with questions or concerns, which can hurt morale and productivity. Which other phrases would you include in this list? Please take a moment to share your thoughts and experiences so others can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

The Valuable Business Lessons of 1873, 1893, Mars Music, and Tomorrow

October 17, 2024 No Comments

Back in the late nineteenth century, America experienced an incredible economic boom. With the Civil War long over and people moving west, the country enjoyed a boom cycle that lasted nearly a decade. Ironically, this good fortune would sour and become the direct cause of a national crisis. Throughout history, the business world has been marked by cycles of boom and bust, often fueled by ambition and the allure of rapid growth. The economic panics of 1873 and 1893, along with the rise and fall of companies like Mars Music over a century later, offer valuable lessons for entrepreneurs and businesses today. Although separated by decades, these historical events share a common thread: the dangers of hasty, unchecked overexpansion. So, let’s take a long look at these pivotal moments, exploring how aggressive growth without a solid foundation can lead to catastrophic outcomes and what modern businesses can learn to avoid similar pitfalls in the future. The Commonality Between the Panics of 1873 and 1893 and the Collapse of Mars Music While the Panic of 1873, the Panic of 1893, and the collapse of retailer Mars Music occurred in vastly different historical contexts and economic climates, they share a fundamental commonality: hurried overexpansion and excessive debt. Both panics were triggered by overindulgent speculation and unsustainable debt levels in various sectors of the economy. In 1873, it was primarily in railroads and manufacturing, while in 1893, it was in railroads, silver mining, and other industries. Approximately 109 years later, while not on the same scale as the panics, Mars Music’s collapse was also driven by overexpansion and excessive debt. The retailer opened new stores at too rapid a pace, leading to high operating costs and a strain on its financial resources. Regardless of the specific causes, the consequences of these events were remarkably similar because they all share a common thread: the negative impact of financial instability and economic downturns. These crises highlight the importance of prudent financial management, risk assessment, and adaptability in the face of changing economic conditions. Slow and Steady Wins the Race: How Businesses Can Grow Sustainably Without Over-Expanding The rush to grow can feel like a race. Every entrepreneur wants to expand, bring in more profits, and become a household name. But, just like in any race, sprinting too fast can lead to serious missteps. So, how can businesses avoid over-expansion and ensure they grow at a healthy, sustainable rate? Well, there are some things you can do to avoid making such mistakes: Understanding the dangers of over-expansion. Let’s begin with a simple exercise. Imagine trying to walk on a tightrope while juggling. It’s tough, right? That’s what over-expansion feels like. Businesses that push too hard to grow often spread themselves too thin, losing focus on what made them successful in the first place. This can lead to lower-quality products, unhappy customers, and ultimately, shrinking profits. Set clear and achievable goals. Goal-setting is comparable to having a roadmap for your journey. Without clear directions, you might find yourself going in circles or heading off a cliff. By setting specific, measurable, and realistic goals, businesses can focus on growth steps that truly make sense. For instance, instead of thinking about opening ten stores at once, aim for one or two first. Get those right, and expand from there. Know your market inside and out. Think of your market as an ocean. If you don’t understand the tides, you’re likely to capsize your boat. Businesses need to research their target audience, understand their needs, and know the competition. This knowledge helps in making smart decisions, such as when and where to expand. By keeping a close eye on market conditions, businesses can spot opportunities without taking unnecessary risks. Focus on quality over quantity. In the race to grow, it’s easy to get excited about numbers. But remember, a small number of happy customers is far better than a big number of unhappy ones. Businesses can build a loyal customer base by focusing on creating high-quality products or services. Satisfied customers tend to return and spread the word, leading to organic growth that doesn’t come with the pitfalls of over-expansion. Keep a close eye on finances. Just as a gardener checks the soil before planting seeds, business owners should keep track of their financial health. Understanding cash flow, expenses, and profit margins can prevent a business from becoming overgrown and unmanageable. By monitoring finances regularly, companies can decide when it’s the right time to invest in growth and when it’s best to hold back. Invest in employee development. Think of employees as the roots of a mighty tree. Without strong roots, the tree can’t grow tall and wide. Investing in training and development keeps employees engaged and productive. Happy, skilled employees lead to better customer service and improved products, strengthening the business from the inside out. When the foundation is solid, the possibility for expansion becomes much easier to handle. Embrace innovation gradually. Innovation is akin to adding spice to a dish: too much can ruin the flavor. Businesses should embrace new ideas, but it’s essential to do this gradually. For instance, before launching an entirely new product line, consider introducing an improved version of an existing one. This allows businesses to gauge customer reaction and make adjustments without risking it all on a big gamble. Last but not least, continually cultivate customer relationships by building strong relationships with customers. It’s all about nurturing connections that promote loyalty. Engaging with customers through feedback loops, surveys, and social media can provide insights into what they love and what needs improvement. This dialogue can guide businesses to grow wisely, responding to customer needs rather than assuming what they want. The Path to Sustainable Growth In the end, sustainable growth is all about balance. Just as a well-fed plant needs regular care, businesses thrive with careful attention and planning. By setting achievable goals, knowing the market, focusing on quality, keeping finances in check, investing in employees, innovating wisely, and nurturing customer relationships,

Help! My Sibling is Sabotaging Our Small Business – What Should I Do?

February 1, 2024 No Comments

Help! My Sibling is Sabotaging Our Small Business – What Should I Do? We all know that running a small business can be challenging. It requires a lot of hard work, dedication, and the right team to make it successful. But what happens when the person who is supposed to be your right-hand man or woman turns out to be the one sabotaging your business? Below, we’ll discuss some practical steps you can take if you find yourself in this unfortunate situation. Recognizing the Signs of Sabotage Before we dive into the solutions, let’s first discuss the signs that your sibling might be sabotaging your business. Here are some common indicators that something is seriously awry and that you’re suspicions are probably valid: Your sibling consistently misses deadlines or fails to complete tasks. He or she spreads negative gossip or talks poorly about the business to others. They withhold important information or resources from you. Your sister or brother makes decisions that negatively impact the business without consulting you. They take credit for your ideas or successes and do so without including you or specifically attempt to exclude your time and effort. If you notice any of these behaviors in your sibling, it might be time to take action. But, don’t just leap without thinking things through. You need to take a step back and look at the entire situation with a realistic perspective. Addressing the Issue with Your Sibling The first step in dealing with a sabotaging sibling is to have an open and honest conversation with them. Make sure to approach the conversation calmly and objectively, and avoid making accusations or placing blame. Instead, focus on how their behavior is affecting the business and your relationship. During the conversation, try to understand the reasons behind their actions. Perhaps they are feeling overwhelmed or frustrated with their role in the business. Or maybe they are dealing with personal issues that are affecting their work. Whatever the reason, try to work together to find a solution that benefits both the business and your relationship. Creating a Plan of Action Once you’ve had a conversation with your brother or sister, it’s time to create a plan of action. This plan should address any issues that were brought up during the conversation and outline clear expectations for both of you moving forward. Some things to consider when creating your plan of action include: Clearly defining each person’s role and responsibilities within the business. Establishing regular check-ins to discuss progress and address any concerns. Setting up a system for open communication and feedback. Identifying any areas where additional support or resources may be needed. Remember, the goal of this plan is to create a healthy and productive working environment for both you and your sibling. It’s not – by any means – to establish a rivalry or force a hierarchy. Seeking Outside Help If you’ve tried addressing the issue with your sibling and creating a plan of action, but things are still not improving, it may be time to seek outside help. This could mean hiring a business coach or consultant to help you navigate the situation, or even seeking the advice of a professional mediator if the situation is particularly difficult. Remember, there is no shame in asking for help. Running a small business is hard enough without the added stress of dealing with a sabotaging sibling. Seeking outside help can provide you with the guidance and support you need to overcome this challenge. What We’ve Learned Dealing with a sabotaging sibling in your small business can be a difficult and emotional experience. However, by recognizing the signs, addressing the issue, creating a plan of action, and seeking outside help if needed, you can overcome this challenge and continue to build a successful business. Want to Accomplish More? Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do? We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test. You can call us for your free appointment at 602-435-5474, or, if you prefer, send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.