by Tiger Buford
Background – This article is written for all of the people who I have met over the years in Orthopedics that think they would like to work at a startup. They usually have a pre-conceived notion of what life is like at a startup and it usually misses the target.
I have had the fortune of working for three Ortho startups with as little as two people to 18 people – NovaLign, Active Implants and now Ellipse Technologies. Although, Ellipse is growing rapidly and has graduated to a growth company as of this writing. I have also worked for three larger Orthos – Smith and Nephew, Sulzer/Centerpulse, and Wright Medical so I understand how vastly different they can be.
Startups are different. Startups are not for everyone, but many people thrive in startups. There are pros and cons. There are enormous differences in focus, in stability, in daily work, and in responsibility and learning. To illustrate, I offer the contrasts below. Disclaimer: my comments are entirely general and are not targeted towards any specific companies.
SIDE BY SIDE COMPARISONS
BIG ORTHO versus STARTUP ORTHO
Risk
BIG ORTHO – Very little ongoing business risk, other than mergers and acquisitions that shake things up. Employees can get moved around occasionally, but it’s generally difficult to get fired. However, historically there have been reorganizations and economic situations that have caused layoffs by the big ortho companies.
STARTUP – Weekly and monthly business risk. The company could lose funding, fail in technical testing, fail in regulatory testing, fail in patent review, spin off into another company, redirect the technology and team, etc. Employees can get fired or moved easily as the focus shifts.
Reward
BIG ORTHO – Maybe a 5% increase in pay and 40% more responsibility. A stable looking resume of working at a big company for a few years, but not more than 10 years. Stock options have such a high strike price that you often find yourself “under water”.
STARTUP – Most startups fail or flounder, but some make it big. Stock option strike price can be very low, especially if the company hasn’t gone through a C or D round. One day, your stock options could be worth zero, or a very large bonus if you are a professional, or perhaps millions if you report to the CEO. Other rewards are learning new skills 3X faster than at a big company. You will have more choice to do what YOU want, not what someone tells you need to do. A work environment with a sense of urgency and chance to contribute daily. There is inherent job satisfaction in startups because your work makes a tangible difference each day. Even after the startup fails (stock options = 0) most people will join another startup for these softer rewards listed.
Financial Focus
A fairly accurate account that closely parallels my experience. The challenges in a starry are a daily fact of life. Big company challenges are less dramatic due to an entrenched bureaucracy that handles issues by committee and takes more time.