Small Business 101

Working for Start-Up Companies

If you are thinking about starting your own business, you probably have tons of questions about where to start. Tune in all-month long to Small Business 101 for a variety of discussions focused on learning the basics of entrepreneurship.

Post columnist Mary Ellen Slayter was online to take your questions and comments about the pros and cons of working for start-up companies.

Read Mary Ellen's past Career Track column about this same topic: Smaller Companies May Offer Bigger Opportunities (Post, Oct. 30).

The transcript follows below.

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Mary Ellen Slayter: Good afternoon! A few weeks ago, I wrote a Career Track column about the advantages and disadvantages of working for a small company, rather than a large one. It also talked about how these difference require a different approach to job hunting. I'd love to hear your stories about working at a small company!

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Bluemont, Va. : Ms. Slayter,

In this financial environment, I would think small companies offer great long-term financial potential if you identify a grower or promising start-up. Are you aware of any good resources for researching small area businesses in need of staff as they grow? I'd like to be able to learn more about management, business plan, funding, etc.

Mary Ellen Slayter: Great question! I think there is a lot of opportunity in working for small, growing companies. But you're right that you're not likely to see these jobs posted in the obvious places. Instead, consider attending the sort of gatherings that attract the small business owners themselves: local small business groups, tech associations, venture capital conferences.

When you approach these people, don't make it sound like you're out to hitch yourself to their wagon. Instead, make it clear to them how you can help them grow through the skill set you bring.

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Cleveland, Ohio: Have you seen any success rate trends corresponding to those who start up a company while employed at another company versus those who stop what they do to focus solely on the new project? I would assume a quicker success time frame for those who do succeed, but I'm wondering about a quality of success.

Mary Ellen Slayter: I think it depends on the kind of company. Some operations are relatively passive; others require active participation of the owner in the day-to-day operations. I mean, a small software company that had one employee -- the owner -- who wanted to write all the code himself would be very different from a shop in which the owner outsourced all the labor and just had to capitalize the business to get it going.

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Arlington, Va. : I work at a small company that is having financial problems. Layoffs seem like a likely occurrence here in the next few months. Are smaller firms (we're under 50) required to pay severance or might we get nothing in such a case?

Mary Ellen Slayter: No company, large or small, is ever required to pay severance, unless it's in a contract. It's a goodwill gesture on behalf of the company, and admittedly, one only the biggest companies tend to be able to afford.

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Washington, D.C.: Your article considers a small company one with under 500 employers, but that seems to be a national number. Statistically, what is distribution of companies in this area based on size? Are small companies here smaller, or larger, than in other areas? Are they focused in certain industries?

Mary Ellen Slayter: I don't have statistics on that handy, but the Washington area economy seems to have a good mix of large and small companies. Many of the small companies are government contractors.

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Los Angeles, Calif. : It's important that small companies manage employee expectations when hiring. If you're coming from a corporate environment or large organization, it's easy to take certain things for granted (full HR staff, private offices, various perks) when you join a very small firm. Hopefully employees think about this during the interview/hiring process, but I've heard too many "horror stories" about people who are surprised by their new work environments -- not just the work itself.

Mary Ellen Slayter: Absolutely. Of course, there are also perks to working in a small shop. For one, they tend to be much more laid back.

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Washington, D.C. : Small companies are great. You give up something financially (well, you can) but I worked at a big international firm once and let me tell you there is nothing like hearing that 3,000 people are getting laid off in one day... Definitely not a good feeling. I love the feeling of camaraderie you can get at smaller firms, even those with a couple of hundred employees. You know who your co-workers are, their backgrounds, etc. "Family" might be a bit strong, and actually might creep some people out, but it's nice being more than a desk number to company leaders.

Mary Ellen Slayter: I hear this all the time from people who prefer working for small companies. But like you said, some people aren't really into that "family" atmosphere and would prefer the more detached environment of a large corporation.

Are there any small business owners out there, today? What do you look for when you're hiring new staff? What puts you off?

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Rockville, Md.: My brother and I got similar educations and have worked in pretty closely related fields our entire careers. He's worked for a series of small employers and on contract. I've been a Fed for 15 years.

Possibly owing to lifestyle stability, I have a wife, son and daughter and he's never married.

I think a lot of people don't realize how the baby boom of the 40s-60s was related to employment stability of the period. And that our current low marriage and birth rates are related to our free agent economy.

If you need soap, I can get off my box now.

Mary Ellen Slayter: That is a chicken and the egg question, though. Obviously you know your brother better than I do, but perhaps he wanted something out of those jobs at smaller employers more than he wanted stability and big bucks? We all make our tradeoffs.

As for soapboxes ... that's what we're here for!

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Arlington, Va. : Most of my experience is actually with larger consulting firms -- I'm about 30, with an MBA. I'd like to move to a smaller firm in a more senior position, but worry that they might think my experience won't apply, or that I might cost too much. Thoughts on positioning myself to potential employers?

Mary Ellen Slayter: Well, it's your job to show them how your experience applies! At little companies, just like big ones, it's all about what you can bring to the bottom line.

You might have to rethink your expectations about being "more senior" at a smaller company, though, by virtue of your big company experience. Small companies, in my experience, tend to be much less hierarchical than large ones. Half the time, there are only two layers: the owner and everybody else.

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Vienna, Va.: I love working for a small company... especially as a recent college grad. I'm learning sooo much, as my department is really small and so they would like me to learn everything they know so that we all can do each other's jobs.

I know I wouldn't be making these many decisions and covering so much in my field if I was working for a huge firm. I think you learn more. And its nice to walk down the hall and talk to the president about her weekend.

Mary Ellen Slayter: Picking up a broad base of experience is one definite advantage to working at a small place, especially when you're young. You'll have a much better sense of what you like and don't like in a job than someone who took a more specialized position right away.

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Alexandria, Va.: I moved to the D.C. area about three years ago and have had two jobs, both at small organizations with 30-40 employees in each. I also attended a small school and I prefer being in an environment where there are not a lot of people because of the opportunity of knowing who everyone is and what their roles are within the organization. It is also great in forming social relationships with everyone inside and outside the workplace.

Mary Ellen Slayter: A lot of people would agree with you!

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Old Town Alexandria: What are some doable ways HR and managers at larger organizations can create the "small-company feel" (in a good way) in their organizations? Is this even a good idea -- or might some employees say "The reason I came here was to get away from that small-time stuff"?

Mary Ellen Slayter: That is the danger, isn't it?

Some big companies try to foster that sense of dedication and innovation in their workers by breaking their staffs up into smaller units. Sometimes it works; sometimes it's just window-dressing.

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Mary Ellen Slayter: Thanks for all your comments and questions! Please feel free to e-mail me at slayterme@washpost.com with other stories and advice about working for small companies.

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Editor's Note: Washingtonpost.com moderators retain editorial control over Live Online discussions and choose the most relevant questions for guests and hosts; guests and hosts can decline to answer questions.