The Pros and Cons of Working for a Small Company

What I Learned from My Experience Working for a Small Company

David Farrell
There are advantages as well as disadvantages to working with a small company. Advantages of working with a small company include having a boss who is more a friend than a calculating business owner, the flexibility of not being stuck in a rigid role, and having the inside step within the company, especially if that company is headed for greatness. Disadvantages involve having to work with the direct boss for extended amounts of time, the uncertainties and demands that come with a small company, and the instability of the company. Here is a breakdown of the different aspects of working for a small company.

Hours: Work hours can be different on a weekly basis. When the work comes, the work has to be done. You can end up working 60 hours the first week and 34 hours the next week. If you are living paycheck to paycheck, the uncertainty of not knowing how much your paycheck will be on a given week can pose a problem.

Every day's hours can be an adventure. Some small company jobs have a set start time; but others tell you the previous evening what time to come to work at, which can make it confusing to remember when to arrive at work. Which hour the work day ends can be even worse. Instead of being on a regular shift, you can get out at two o'clock in the afternoon on one work day and seven o'clock the next work day. Some companies have successfully managed to get the day's work done in a specific period each day, but with most small companies, it depends on each day. This can add additional hassle to the job in that you have to constantly keep the boss informed whenever an evening appointment comes up. The uncertainty adds another negative element to the mix as well. How can someone commit to something when he is unsure if he will be available on any given evening?

Paychecks: Paychecks can be an even worse adventure. The boss has to balance the money that comes in with business expenses, his own salary, and the payroll. It is not uncommon for small businesses to have to work with the employees on getting the employee to hold off cashing the paycheck for a few days. Another paycheck related problem is that small businesses do not have the rigid payday structure that larger companies have. Without a secretary, the boss has to do the job of secretary while wearing his little Field Supervisor hat. It is not uncommon for small job details like calling the payroll company to slide, thus making a Friday paycheck arrive the next Monday. Again, people who live paycheck to paycheck cannot deal with the added uncertainty of not knowing when they get their paycheck.

Benefits: Most small companies cannot afford health benefits, 401K's, sick days, and in some cases they don't even pay holidays. Some small companies don't pay vacation either.

Time Clock: Most really small companies rely on a handwritten sheet of paper as opposed to a time clock. The problem with this is you're either responsible for keeping track of and double-verifying your hours, or are at the mercy of the boss, who is subject to a human margin of error. The plus is this eliminates those situations where work is done outside of access to a time clock, and the ensuing hassle of having to make sure those hours get counted.

Set roles are nonexistent. In a small company, you have to do lots of different tasks. The advantages of this are that you get the opportunity to learn how to do a lot of things, as well as learn a lot of job skills. The variety from day to day is another positive, as you stay fresh and invigorated. On the flip side, you have to be able to perform lots of different things well.

Working with the boss: With a small company, it is not uncommon to have to work in close proximity with the boss. This can be beneficial in that the boss can become more of a friend as opposed to a cold business owner. However, sometimes being around the boss can have a more suffocating effect. Bosses can be, well bossy, hindering the freedom that comes from the ability to do things the way you do them best.

What is the company's potential? You get the front seat view here on the potential of the company. You have the opportunity to get to personally know the owner and to develop from an assistant and laborer to a manager who knows the system well. Is the small company headed for greatness? If so, you can find yourself on the inside of the curve. Even if the small company is stagnant, you can gain experience, which you can cite on future job applications.

And last but not least, the company rules can bend. In a small company, without an employee manual and precedent, the boss can usually afford to make exceptions for an honest mistake, as opposed to having a generic system that applies to all workers.

So basically, these are the things to know about working for a small company. Whether they are advantages or disadvantages comes down to what the particular individual is looking for and can handle.

Published by David Farrell

David Farrell, "Mr Dave," is a freelance writer, the official RuneScape Examiner for examiner.com and a UConn Certified Master Gardener. Mr Dave's interests include RuneScape, Gardening, Crafts, and writing....  View profile

  • In a small company, the boss can be a friend and a micromanager.
  • Hours, paychecks, and job descriptions are often uncertainties.
If the small company makes the big time, it can take you there with it.

9 Comments

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  • Robin Costello2/5/2009

    I worked for a small company and it was always like playing in a game show on payday. Cash or not cash.

  • Fabletoo11/22/2008

    I've worked for a lot of small companies and always had good experiences. Now, I work for a huge international company in Bangkok with 2,000 employees - but, because they're Thai, it still feels like one big family where everybody takes care of everyone so I love it. Overall, I've had great employers, only had one who was nuts, and she still paid me well :-)

  • Wes Laurie11/20/2008

    I'm my only employee.

  • Mr. Dave11/9/2008

    Thanks! I based this one mostly on personal experience though, I learned a lot from my eight years in working for small companies. On company I orked for ad the "paycheck race" Someone told me that rather than deposit it, to go to the bank its drawn on and cash it. Either I get the money or I dont, no $10 fee. I forgot to cover the "family" aspect. I guess I never really felt that I was a part of any work "family" due to the way it was where I worked. But that's a good point.

  • Daniel Thrasher11/9/2008

    As someone who has yet to enter the job market officially, this is excellent information. I am glad to know this. Thanks Mr. Dave! :)

  • J P Whickson11/8/2008

    Dad ran a small company and many men stayed with him through the bad times. The best part of working for a small employer, if you have the right one, is that they're all family. You get lost at the big employer. The worse thing is that sometimes there's a race to the bank to see if the paycheck bounces.

  • Momie Tullottes11/5/2008

    Great points. I've been there. :-)

  • 3lilangels11/5/2008

    so true good read thanks!

  • mayka11/5/2008

    Very very true

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