Startups:
- Small Team:
- Startups typically have small teams, often within 10 people.
- According to a report by Statista, around 51% of startups globally have a team size of 1–10 employees.
2. Constant Hustle:
- Startups are known for their continuous hustle and ability to pivot.
- According to a survey conducted by Startup Genome, 74% of startups pivot their business model at least once.
- Instagram, now a popular photo-sharing app, initially started as a location-sharing app called Burbn.
3. Focus on Innovation:
- Startups aim to solve problems through innovation.
- According to a report by Crunchbase, venture capital funding for innovative startups reached a record high of $357 billion globally in 2021.
- Coursera and Udemy, two popular online learning platforms, have served millions of learners globally, with Coursera boasting over 87 million learners and Udemy having more than 50 million learners.
4. Low Cash Flow:
- Startups often face low cash flows and require frequent fundraising.
- According to a report by CB Insights, 29% of startups fail due to running out of cash.
- Startups actively seek funding through various means, such as angel investors, venture capital firms, or crowdfunding platforms like Kickstarter and Indiegogo.
5. Balancing Dreams and Realities:
- Startups embody the dream of solving problems but must face harsh realities.
- Only about 10% of startups succeed, highlighting the challenges they face
- Startups need to navigate market competition, regulatory hurdles, and scalability issues to turn their dreams into successful ventures.
Big Corporations:
- Huge Team:
- Big corporations are characterized by large teams.
- They offer more job security due to their size and stability.
- Established corporations have solid foundations, established relationships, and boards of executives making collective decisions.
2. Focus on Core Competencies:
- Big corporations are typically risk-averse and focus on optimizing their core competencies.
- They prioritize incremental improvements rather than making drastic pivots or extensive company restructuring.
- Companies like Walmart innovate within their established business model while maintaining their core focus of selling household goods
3. Abundance of Funds:
- The most significant difference between startups and corporations lies in their available funds.
- Startups often face tight cash flow and continually seek additional funding.
- Corporations have larger pools of funds and are less affected by short-term fluctuations in sales.
- Corporations can allocate more resources to areas like advertising, talent acquisition, and expansion, while startups must make careful decisions due to limited resources.
4. Risk Mitigation:
- Big corporations have established financial stability, brand recognition, and market presence.
- Their size and resources provide a cushion for handling mistakes and recovering from setbacks.
- Startups, on the other hand, must be cautious at every step and manage risks more actively due to limited resources and potential vulnerability.
When applying for a Product Manager role in a startup, having knowledge and skills beyond product management can be highly beneficial. Startups, being small in size, often seek to optimize their manpower efficiently and reduce costs. As a result, startup owners are often eager to recruit individuals who can wear multiple hats and possess a diverse skill set. According to a survey conducted by LinkedIn, 84% of recruiters believe that hiring candidates with a broad range of skills is crucial to the success of their organization. Startups value all-rounders who can contribute not only to product management (a specialized field) but also to other areas like HR, marketing, finance, and more (a general role). By having a solid understanding of various aspects of the business, you can collaborate effectively across teams, contribute to overall organizational growth, and help the startup navigate its challenges.
