Guest column

Why this Houston entrepreneur stuck with startups over a corporate gig

When Microsoft came knocking on this Houston entrepreneur's door, he realized leaving the startup world was not something he was willing to do. Pexels

Several ago, Microsoft dangled a senior leadership role in front of me, which included a high-compensation offer and the chance to move to Seattle. It was tempting. On the surface, this might seem like an easy choice. This kind of senior management position at Microsoft is something many people only dream of. And Microsoft was making a hard push for me.

Then, while pondering the offer, I imagined how I would change the company's website to capitalize on an urgent market opportunity, and then I thought about the bureaucracy I'd have to go through, which I imagined would have been like trying to get a bill through Congress. I called the hiring manager and asked for an example of his team advocating for such a change, and he confirmed that it would require jumping in slow motion through layers of hoops.

I couldn't get myself to leave the high-flying startup atmosphere where I had the freedom to move the needle in quantum leaps, not increments. It's a big decision to choose to share your talents with a startup versus a large corporation. Both options include benefits and risks. But if you have an entrepreneurial mind-set, you will discover, like I did, that startups can offer huge benefits. Here are what I see as the top four.

1. Fewery barriers of entry

While big corporations often choose to hire the candidates who went to Ivy League schools, are well-connected, or have loads of experience at higher-level positions, startups are interested in something else. They choose to hire people who think creatively, show a willingness to work hard, and demonstrate raw leadership qualities that, once cultivated, can help the company (and the individual) achieve breakthrough success. Startup entrepreneurs are creators, not maintenance workers, and startups need visionaries at every level.

2. Versatility in roles

Most jobs in big companies offer a limited range of authority, meaning no single individual, besides perhaps the CEO, has the ability to influence the entire company in a significant way. When you get hired to fill a role at an established business, that's exactly what they expect you to do: fill that role.

It's rare, if not impossible, to find the freedom to experiment and try your hand at filling different roles within various departments. Most startups don't hire with a set idea of your potential or career path, because the startup is young and undergoing massive change.

Founders may find it hard to predict what the company's needs will be as it grows. This is the perfect environment to try on different hats and find your zone of genius — the area where you work best — then move up quickly from there.

3. Financial rewards

Go to work for a big company, and you'll get a paycheck — a paycheck and a 4 percent annual raise along with a formal review from a manager who dreads delivering it. The potential upside is far greater at startups. And the initial financial rewards might not be too bad either.

Depending on the size and cash flow, a startup may offer a competitive salary right off the bat, or it may start you off with a modest salary with the potential to own a piece of the pie through stock options. The stock options could lead to astronomical compensation later on, if the company is successful. In my opinion, always go for the stock options.

4. Upward mobility

If you have enough drive, it is possible to climb the old guard corporate ladder but be prepared for a slow climb. Incumbent companies are burdened with incumbent mind-sets. Barriers to advancement are high, and opportunities are few. If you have set your sights on making it to the C-suite of a Fortune 500 company, your opportunities are severely limited. Among those companies, there can only be 500 CEO positions, maybe 5,000 in the rest of the C-suite. That means your odds of getting a job in the C-suite of a Fortune 500 company are lower than the odds of being drafted by the National Football League — way lower considering the NFL drafts 224 new players each year,and people tend to linger in the C-suite quite a bit longer than that.

Compare these numbers to the 46,500 startups in the United States, and it's easy to see there are far more executive leadership opportunities at startup companies. If you believe your corporate destiny is to become a leader, you can find a startup with a dynamic, fast-moving environment that values initiative and offers the opportunity to move up quickly.

------

Steven Mark Kahan has successfully helped to grow six startup companies from early-stage development to going public or being sold, resulting in more than $3 billion in shareholder value. He is also the author of a the book Be a Startup Superstar.

Trending News

Building Houston

 
 

"There's something magical happening in Houston, and [VCs] want a piece of it." Photo via Getty Images

Houston's seen a growth in startup and venture investment — even amid the pandemic — and a group of Houston innovators sat down for a virtual event to discuss what's lead to this evolution.

The Greater Houston Partnership hosted an installment of its Houston Industry Series focused on Digital Tech on Thursday, September 24. The panel of experts, moderated by Krisha Tracy of Google Cloud, discussed how they've observed the paradigm shift that's occurred in Houston over the past few years — and why.

Missed the discussion? Here are some significant overheard moments from the virtual event.

“I think there really is an interest for venture capital here, both locally and also welcoming it from outside of Houston. … There’s something magical happening in Houston, and [VCs] want a piece of it. I think that magical piece is a renewed interest in collaborating.”

Stephanie Campbell, managing director of Houston Angel Network and co-founder of The Artemis Fund. "I think a lot [of this progress] is due to the GHP, Houston Exponential, and the founding of the HX Venture Fund to bring those venture funds to Houston to say, 'what's happening here?'" Campbell adds, saying that this connectivity and collaboration that's happening in Houston VC is unique.

“I think there’s a misconception around all we do is oil and gas and life science in Houston, but when you think about what VC-backable companies look like, they’re tech, they’re B2B SaaS, they’re highly scalable, and they don’t tend to be capital-intensive types of things we see corporate venture backing.”

Campbell says, adding "the connectivity and the interest in VC is really taking off. It's an exciting time to be in Houston and Texas in general."

“Plug and Play’s ventures team is based in Silicon Valley and one thing they enjoy about meeting Houston-based founders is valuations tend to be more reasonable than in the Bay Area."

Payal Patel, director of Plug and Play Tech Center in Houston. "There are gems to be found," she adds.

“I don’t know what it is — if it’s something in the water or just Texans being very friendly, but the investors here share deal flow. It takes a village, and I think we all understand a rising tide lifts all boats."

Patel says on the collaborative nature of Houston. "It's really magical."

“What you’re witnessing is a city that has been waiting for industrial innovation to reach the point where it can be adopted at a really high scale, and that happened around 2017.”

Jon Nordby, managing director at MassChallenge Texas in Houston. Nordby adds that MassChallenge in Houston hasn't been keen on consumer tech, or the "grilled cheese delivery apps," as he describes. "We like companies that are in love with problems, not so much in love with solutions. … We build really meaningful tech."

“Over the last year or two, we’ve seen that sleeping giant get awoken. Open and external innovation is newly adopted by more legacy industries where it wasn’t before — and that’s just created a mountain of opportunities for startups and investors alike.”

Nordby says on the shift toward this meaningful, problem-solving technology, which Houston is full of, as he observes.

Trending News