Consulting vs. Startup: Which Career Path Offers Better Opportunities?

For students starting their careers, consulting often provides more opportunities and flexibility compared to joining a startup. In consulting, one can easily experiment with various industries and roles within a short time frame. This enables individuals to gain diverse experience and then specialize in areas of interest based on both their experience and inclinations.

Experimenting with Different Industries in Consulting

My own experience as a consultant from 2014 onwards shows how diverse opportunities can be encountered. Within one year of joining, I had exposure to automotive projects, consumer goods projects, and more. This rapid exposure helped me discover my interest in sales and strategy roles rather than operations and supply chain management. The natural progression in consulting allows individuals to specialize without actively seeking different roles.

Flexibility in Consulting vs. Startups

Startups do offer a flexible work environment, but consulting provides structured guidance and well-defined career paths alongside this flexibility. Consultants are encouraged to have diverse interests and strengths. Transitioning from consulting to a startup is much more common than the reverse. Many consultants move to senior positions in startups, but I have yet to encounter a scenario where someone started at a startup and then shifted to a consulting firm.

The ease of transitioning from consulting to a startup is a significant advantage. Starting with a spell in consulting can equip one with the necessary skills and experience to effectively handle the challenges of a startup. However, direct entry into a startup, especially during economically challenging times, might not offer the same stability and resources.

Challenges and Advantages of Startups

While consulting offers structured opportunities, startups present unique advantages. They provide an environment where new and diverse tasks can be tackled simultaneously. This hands-on experience can be incredibly challenging but also extremely rewarding. Rapid growth opportunities in startups are also appealing to many, allowing quick ascension to higher positions.

Current Market Conditions and Wisdom of Waiting

Currently, the market conditions for Indian startups are extremely unfavorable. The year 2017 saw a continuation of the challenges faced by the startup ecosystem, with numerous startups closing down and laying off staff due to poor financial conditions and lack of funding. The situation has not improved in 2016 either.

Given the current economic climate, it may be more prudent to join a stable, bigger firm. This provides the advantage of a structured career path and financial security until market conditions improve. Starting a career in a consulting firm can serve as the perfect stepping stone to a potential future in a startup once the market is more favorable.

However, candidates must also consider salary and other financial factors. If a startup offers a significantly higher salary, it might be worth considering. But thorough due diligence on the business model is crucial. The startup should have enough funding and a viable revenue stream to sustain operations, marketing, and sales activities.

In summary, choosing between a career in consulting or a startup largely depends on an individual's priorities and expectations. While many opt for startups due to their flexibility and opportunities, consulting provides structured growth and stability. Consulting can serve as a powerful foundation for a successful career in a startup, especially in a challenging economic environment.