Starting with a start-up?

Every now and then you hear of a certain startup company visiting the campus and the compensations are huge to say the least. Anything which will tempt the best of the lots.
But if you're trying to choose whether to pick the tried and tested dream company of your’s or brave the waters of a start-up, it's crucial to consider the entire landscape of compensation and career growth.

Start with salary.
Once upon a time, you could expect to work at a start-up for a pittance -- if you got paid at all. Most senior managers and founders lived in their parents' garages while building a company into a real business.
The billions of dollars in venture capital being poured into start-ups has changed all that, giving many start-ups enough cash to pay competitive salaries. However, always remember the mysterious gap between the CTC and the in-hand salary. You certainly wouldn’t like to have an in-hand salary of 19k per month and a 4.8 lpa CTC. So get your facts clear first.

Consider the hours you'll be expected to work.
The defining characteristic of a start-up is working long hours. In the first few years of a start-up's life, it's not uncommon to work 12-hour days, seven days a week.
If you're working double the hours that you would work anywhere else for the same salary, you've effectively taken a 50-percent pay cut. And the time that you spend working could very well have been used for other things.
It's hard to measure the opportunity cost of giving up all your free time. Maybe you would have spent it on the couch, but then again, maybe you would have taken a class or written that novel. Those with families have to consider the toll work will take on their personal lives.

What other opportunities does the start-up offer?
Although the lure of riches is compelling for many people, there are some other reasons to work for a start-up that don't involve dollar signs.
For example, in most start-ups, people are given greater responsibility than they would have in a more established company. For many, having start-up experience is another step on the career ladder. So that what you can learn in an year you might not be able to learn in 5 years working in an established giant.


Are you ready for it?
The work load and the responsibility put in are enormous. Considering your first job, are you ready for it coming straight out from the colleges where the only responsibility was hosting the cultural fest. Or you think you need proper training and stuff to get prepared for the big bad corporate world. ‘Coz that’s not going to happen there. Work from day 1.

How many shares of stock will you get from a start-up?
Just because stock is being offered doesn't mean your dreams of becoming Bill Gates are almost fulfilled. Look at the details of the entire process. Companies have a lot of flexibility in how they offer their stock to employees. Find out how much you'll have to invest to make use of your options.

How long until they vest?
It's crucial to bear in mind how long you'll have to stick around to own all your shares. This typically takes four years or even longer. A start-up is not exactly a get-rich-quick scheme.

What if the company is sold?
Many start-ups make attractive acquisitions -- in fact, some are founded in hopes that they'll be acquired by one of the giants, such as Amazon.com or Yahoo.
But what about you, your shares, and your job? Many people who are attracted by the excitement of working for a start-up don't want to work for one of the giants. If your company is bought before you fully vest, you may have to work for a company you don't especially like or have to give up some of your stock.

So go for it for the challenger inside you and the challenges it offers. After all it's always your belief in yourself more than your belief in the company.