How To Navigate That Failing Startup Feeling
How To Navigate That Failing Startup Feeling
I came across a Reddit post this week titled "That Failing Startup Feeling." The author discusses the familiar experience of working for a struggling startup, with talks of layoffs, budget cuts, and tighter timelines. You see the signs all over and it can be disheartening.
During these tough times, the questions arise: how do you maintain your sanity? How do you know when it’s time to call it quits?
Startups are among the most volatile sectors in the tech industry. With new startups emerging daily and 90% ultimately failing, it's both an exhilarating and daunting space to be part of. Many startups are pushing the boundaries of technological innovation, but it's easy to lose sight of that when things aren't going well.
As someone who has been involved in startups for nearly a decade, I've identified three key considerations to help navigate that sinking feeling.
1. Do you believe in the company, its direction, and mission?
First, ask yourself if you're still connected to the company's core values, mission, or problem it's trying to solve. Are you still passionate about what they stand for?
While it's difficult to overlook layoffs and budget cuts, believing in the product is essential. If you answer yes to this question, it indicates confidence in the startup's potential success. However, if you don't believe in the mission or product anymore, it may be time to reevaluate your involvement.
Putting on your business hat, think about the company’s financials and how it’s faring in the broader economy:
Is it hemorrhaging money?
Are you closing in on profitability?
Is there a solid plan financially for the next three years?
Are we close to an exit event (IPO, Acquisition, Round Raise, Bankruptcy)?
Getting a better sense of the dollars and cents may not fix a broken mission, but the upside and outlook could be worth sticking around for. We all have our priorities when it comes to why we stay, but knowing the financial status may be enough to sway this answer to a yes.
2. Are you being offered growth opportunities and chances to gain new experiences?
Secondly, consider whether there are opportunities for personal growth within the company. This doesn't necessarily mean promotions or salary increases – instead, focus on potential learning experiences and areas for development.
Startups offer an excellent platform for leveraging learning opportunities that you might not get elsewhere. By the nature of startups alone you'll be exposed to a wider array of experiences than at a large corporation. Consider Columbus with all our sizable banking and insurance companies (Nationwide, Chase, etc) with immense structure and numerous floors to their buildings. As an engineer there, how many different problems would you encounter?
Compare that to a startup with a 5 to 40-person engineering team – just imagine all the problem areas you'd be involved in solving. For some people, this multitude of problems can be overwhelming, and I get that; I've been there myself. But within that chaos, you're accelerating your growth, experience, and exposure to new topics and problem-solving methods.
Some of the most rewarding challenges I've tackled have come from working quickly alongside others in a collaborative environment – facing tight deadlines and devising solutions or fixes. Think about building an API rapidly or creating an entire calendar app with various functions. How do we deliver this as a minimum viable product (MVP) within the given timeframe? While not sustainable, rapid, intense startup moments provide more learning in weeks than some get in months.
Reflect on those opportunities: are they still available to you? And does the prospect of gaining such experience excite you? If the answer is no, it may be time to look elsewhere. Similarly, if you're confined to a narrow role within the startup and unable to escape that box, it's another sign that perhaps it's time to move on.
Consider the potential consequences of layoffs or budget cuts when you possess only one skill set. Not to alarm anyone, but it's possible that you could be next in line. There's value in making yourself marketable by diversifying your skills and ensuring that you're capable of working across various areas.
Cross-functional teams, well-versed in various aspects of the business and code base, are essential for growth and tackling diverse challenges. Consider the unique opportunities a startup environment may offer, such as industry or technology-specific experiences that might not be possible elsewhere.
3. Do you enjoy working with your coworkers?
Evaluate your relationships with your colleagues. A harmonious team can make all the difference in day-to-day work life. Regardless of the startup's performance, a toxic environment with individuals you cannot collaborate with will make your life difficult. Ask yourself if you genuinely enjoy working with your team on a daily basis.
I’ve been fortunate to work with many great teams, even when I no longer believed in the mission or the company's direction. Ultimately, I did leave, but my enjoyment of collaborating with the team kept me around longer than anticipated. With a strong team by your side, any challenge can be overcome.
If the answer is no, and you don't enjoy working with your team, it may be time to search for something new. While finding a new role can be challenging, remember that you currently have a position which offers some security as you explore other options.
If the answers to the above are yes, continue fighting the good fight. If not, don't hesitate to explore other opportunities that better align with your values and goals, or in some cases, your sanity.
Especially when the company’s economic status is in question, it’s not uncommon to feel the itch to look around. Survivor's guilt in the context of layoffs is a very real phenomenon. I've experienced it, and so have engineers and colleagues who report to me. It's unpleasant, to say the least. Layoffs are tough for everyone involved, and even top executives and engineering leaders would agree that they're not enjoyable.
Consider three questions when reflecting on your situation:
1. Do you believe in the company, its direction, and mission?
2. Are you being offered growth opportunities and chances to gain new experiences?
3. Do you enjoy working with your coworkers?
Ultimately, the decision is yours to make. If you can answer "yes" to at least two of these questions, you're likely in a good position. If only one question receives a positive response, it's time to reassess your situation. And if none of these questions get a "yes," I hope your future endeavors bring you fulfillment (and soon).
Startups are inherently volatile, but they can also accelerate our growth as engineers and leaders. In fact, I firmly believe that a year at a startup can provide more learning experiences than triple the years at a large corporation.
What are your thoughts? Did you find this perspective helpful or unhelpful? How do you approach situations like these? Feel free to share in the comments.
Note: For those who work with me currently, I’m stoked to say I can answer “yes” to all three of the above questions. I’ve also been fortunate that even the startups I left still exist.