Why Startup Advice from Corporate Employees May Not Be the Right Fit

When you’re starting a new venture, it’s natural to seek advice from people with industry experience. You might think that a friend or acquaintance working for a big company could provide valuable insights. After all, if they’re working at a well-established corporation, they must know what it takes to succeed, right?

Not necessarily. Here’s why advice from an employee of a large company might not be as beneficial as it seems, and how startup life requires a mindset and experience that is often worlds apart from a corporate environment.

1. Different Risk Tolerances

In a big company, employees operate within a structure that cushions risks. Decisions are often made by committees, with processes to ensure stability and minimize disruptions. In contrast, startups live and breathe risk. Founders must make high-stakes decisions quickly, often with limited data and resources, which can be overwhelming for someone used to the safety net of corporate structure.

1. Resource Availability

Established companies have abundant resources — money, talent, and infrastructure. Startup founders, on the other hand, face constant constraints and must find creative, low-cost solutions to every problem. The employee’s advice, shaped by easy access to resources, may not be practical or relevant in a resource-scarce startup environment.

1. Problem-Solving Approaches

In large organizations, solutions are often well-defined within a playbook. When a problem arises, there are likely established processes or departments to handle it. Startup founders, by contrast, operate in uncharted waters with no manuals or guides. Creative, out-of-the-box thinking is essential, and experience in a structured environment may not necessarily foster this skill.

1. Pace of Execution

Big companies operate on longer timelines, often planning quarterly or annually. Decisions go through multiple layers of approval. In a startup, speed is everything. Founders need to act quickly, test hypotheses, pivot, and respond to feedback in real time. Advice from someone used to a slower corporate pace may lack the urgency and agility needed in the startup world.

1. Personal Investment

The drive that fuels a startup founder’s journey is deeply personal. For employees in large companies, the stakes are rarely personal; they have security in their roles, and their decisions are usually part of a team effort. A founder’s perspective is uniquely all-encompassing, requiring emotional resilience, adaptability, and a willingness to face repeated failures — a mindset that doesn’t easily translate from a corporate role.

1. Market Disruption vs. Stability

Large companies typically prioritize stability, market share, and protecting existing business models. In contrast, startups often aim to disrupt the market and introduce radical change. This disruptive mindset may not be part of a corporate employee’s experience, making it hard for them to advise on strategies that challenge the status quo.

So, Where Can You Get the Right Advice?

Seek out people who have gone through the startup process, whether successfully or not. Learn from their mistakes, pivots, and breakthroughs. Join startup communities or find a mentor who understands the unique demands of building a company from scratch. Their insights will likely be far more aligned with the realities you face as a founder.

Final Thoughts

Employees of large corporations have valuable knowledge, however, their experience often aligns with a different set of skills and priorities. Building a startup is a unique journey, with its own learning curves and challenges. By seeking advice from those who’ve been on the same path, you’ll gain perspectives that genuinely apply to your entrepreneurial journey and help you navigate the uncertainty that defines the startup world.