Is It Better to Join a Startup or a Large Tech Company?

Every year, hundreds of thousands of new businesses are launched in the United States. Of these, any that are tech startups will strongly consider hiring a product manager (or product managers). 

On the flip side, there are large tech companies that are always on the prowl for top-notch product management talent. Companies such as Amazon, Facebook, Google, LinkedIn, Netflix, Salesforce, and Microsoft fit the mold. These companies have tens of thousands of employees and billions of dollars in annual revenue.

As you can imagine, there’s a big difference between working as a PM at a startup and a large tech company. So, if you’re on the fence as to which career path is best, it’s time to take a few key steps:

1. Know your interests and objectives

Without this knowledge, you’re churning your wheels. The product management space is HUGE and only growing, so understanding your interests and objectives can help you narrow your focus. 

In regards to your interests, start by answering these two questions:

• Are you seeking broad exposure to multiple sides of the company, with a focus on product management? You’ll get this with a smaller company where you can “wear many different hats.”
• Do you have your sights set on a particular industry? Fintech, blockchain, and healthcare technology are common examples. 

As for objectives, here are some examples:

• To secure a position at an established tech company, such as Google or Facebook. 
• To secure a position at a startup with the potential for fast career growth. 
• To make use of a particular skill set or knowledge, such as past experience building a product in a specific industry. 

2. Look at it as a product strategy question

Imagine that you’re the product. You have to think about your long-term goals, what you want to achieve, and your strengths and weaknesses. You’re more or less running a SWOT analysis on yourself. 

3. Review your criteria 

Finally, review your personal criteria as a job candidate. This is often the most important step, as it will push you in one direction or the other. Below, you’ll find five sample criteria you can use to determine if you’re best suited to join a startup or a large tech company. 

Life status

Are you single or do you have a family? Are you the sole breadwinner in your home? If you have a family and people who rely on you financially, it’s often best to work for a larger company.

Employment at a larger company typically — but not always — results in more job security, a higher salary, and better benefits (such as medical and dental coverage). 

The experience you’re seeking

At a small company, you have the opportunity to gain experience across the spectrum. In addition to product management, you’ll have exposure to marketing, engineering, product design, and more.

Conversely, if you want experience managing a larger product or working at a larger company — think along the lines of Google Ads or Facebook notifications — you’ll want to seek employment at an established tech company. 

Financial situation

This goes along with your life status. Generally speaking, there are two questions to address:

• Should you optimize for base salary?
• Are you interested in upside in the form of equity? 

If base salary is on your mind, a larger tech company will almost always come out on top. But remember, PM salaries vary from company to company, even when you’re comparing the biggest and the best.

As for equity, a startup is the way to go. Take for instance a product manager who joins a startup as one of its earliest employees. While you may not earn a high base salary early on, equity in the company provides you much more upside over the long run. This is a risk you may be able to take if you don’t have others relying on you financially. 

Connections

Do you care about making connections in the product management space? Carefully answer this question as the experience differs from startup to large tech company.

At a startup, you’re working with a small group of people who hope to one day change the world. You’ll get to know them well, but there’s only a handful of people to connect with. Furthermore, the connections that you make are more industry-focused both internally and externally. 

Large tech companies employ thousands upon thousands of people. This provides the opportunity to connect with more professionals in your space, including generalists who end up working in various industries. These are people who you can do things with over time, such as launching a startup. 

Career Plans

While your career plans can and probably will change as you grow, you should still start with a solid idea of what you hope to accomplish over the short and long term.

Do you want to work on a consumer-focused product? Are you intrigued by a specific industry, such as fintech? Are you most interested in building your resume at a big company so that you can move to the top of the PM career ladder later in life?

Answering these questions can help you decide between joining a startup or a large tech company. Your choice may change down the road — and that’s okay — but for now, you have to stick with your current feelings about the future.

Startup vs. Large Tech Company: Questions to Answer

The decision to join a startup or a large tech company isn’t an easy one. Even if you consider all the points above, it’s not a choice you can make on the spot. It could take several days, weeks, or longer of comparing your options to decide which path is best. 

If you’re seeking more assistance with your decision, here are seven of the many types of questions you can ask yourself:

• What is your gut telling you? 
• Would you rather work in an intimate environment or with a large team?
• Do you want to have your hands on many parts of the “product process” or focus primarily on management?
• What’s the most important factor for you when comparing PM jobs?
• What traits are you seeking in an employer?
• What niche gets you most excited about the future? 
• Do you know anyone who works as a PM at a startup? How about a large tech company?

As you answer these questions, others will come to mind. Address those, too, as every answer moves you closer to your final decision. 

Final Thoughts

So, is it better to join a startup or a large tech company?

There’s no right or wrong answer to this question. There’s no one-size-fits-all answer that will put you on the right career path. You need to answer this question based on your strengths, weaknesses, job criteria, and where you want to take your career in the future. 

Don’t hesitate to lean on us if you need help with interview prep, finding a mock interview partner, or partaking in a group practice session — and that’s just the start!