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FREELANCE AND STARTUPS
The Business Careers Handbook 2020
Freelance and start-ups
Overview Sometimes, we want to take the road less travelled. If working for a big corporation or professional services organisation isn’t your thing, you may want to join a start-up or become a freelancer. In fact, while the road towards start-ups and freelancing is not the traditional choice, it is an increasingly well trodden path – and we can only see this trend continuing. Some people choose to work in start-ups simply for the experience. They are industry agnostic and just want to understand the start-up environment. Others join start-ups because they are deeply passionate about an industry or specific product or service. Joining a start-up can be an exciting journey as you learn how to build something from the ground up. As a freelancer, you have much more autonomy – over your time, where you work and the projects you choose. Like start-ups though, being a freelancer comes with its risks. Not always knowing when your next pay cheque will come in or what lies ahead requires confidence and a high tolerance for uncertainty. Entering the freelance and start-up sector Start-ups are typically classed according to the funding received. An early stage start-up will seek ‘seed’ funding, which is typically used to undertake initial research and development. Once the idea is validated, Series A funding is used to continue building a track record. Series B and C are later round funding to help the start-up scale, before eventually being sold to another organisation or listed on the stock exchange. Deciding what stage to join a start-up will have implications for the type of work and your financial rewards. For example, an earlier stage start-up will likely be more open to negotiating equity compared to established start-ups. Remember, organisations such as Airbnb, Spotify and Uber are still often referred to as start-ups, although they are well established and in many markets. Start-ups will often prefer experienced hires that can hit the ground running, so it may be easier to apply after a couple of years’ experience. However, start-ups www.gradaustralia.com.au
love people who are passionate about their product so if you are enthusiastic about an organisation, it is still worth reaching out. As start-ups often don’t have formal recruitment channels, growing your network and keeping an eye on venture capital organisations are great ways to find interesting start-ups. Alternatively, if you’re interested in start-ups but prefer something a little less risky, you may look for larger organisations that have in-house incubators or innovation labs. These are often run like start-ups but with the backing – and funds – of a corporate organisation. Another option is to work for a venture capital firm. Venture capital firms are in the business of picking start-ups to invest in. While working for a venture capital firm is not quite the same as building an organisation from scratch, you still get to be involved in the journey of the start-ups you invest in and see them grow. Becoming a freelancer means establishing your own brand, reputation and demonstrated record of performance. As a graduate without experience, it is difficult to trade on these intangible assets. There is, however, an increased demand for contractors in management consulting with more than two years’ experience, particularly those from top-tier consultancies such as McKinsey, Bain, and Boston Consulting Group (BCG). There is also demand for contractors in areas such as accounting, marketing and operations. Getting work as a freelancer often means relying on word of mouth. You may find work with clients you have worked with previously or through their referrals. Freelancing opportunities are also available through recruiters or organisations such as Expert360, which specialise in matching contractors to corporates seeking their work. What’s involved Your experience at a start-up will depend on the size of the start-up. At early-stage start-ups, job roles may not be clearly defined, with people wearing many hats and pitching in to do what’s needed. The environment is dynamic, fast paced and intense. As a start-up becomes more established, it is typical for it to operate in a similar manner to traditional organisations with more structured processes and systems.
