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Direct to Entrepreneurship vs Traditional Job Path

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Software Engineering Intern at Taro Community3 months ago

Background: Just graduated with CS degree, did internships, have couple years of living expenses saved. Very interested in entrepreneurship/building my own thing, specifically B2C products and viral apps. My goal is achieving freedom (time, location, money) and eventually moving towards building something truly meaningful.

Location Context: Based in Canada, can't move to the US due to visa constraints. Local job market is tough right now with very few top tech companies hiring. This means most available opportunities would be at lesser-known companies.

Current Situation: Parents and peers are pushing hard for me to get a traditional tech job ASAP. I'm resisting because I don't see how climbing the corporate ladder aligns with my goals. My reasoning:

  1. In a tech job, I'll be too focused on technical implementation to learn crucial business skills. While I'll gain deep technical knowledge, I won't learn entrepreneurial skills like distribution, product-market fit, or scaling a business.
  2. Jobs don't create leverage - my time investment today doesn't reduce work needed tomorrow. In contrast, building products creates compound returns (code once, earn repeatedly).
  3. I have an opportunity to partner with an experienced entrepreneur who's strong in distribution. While I might get lower equity since I'm new, I see it as paid learning - I contribute technical skills while learning business/distribution firsthand.

My View: The traditional path (get job → save money → maybe start something later) seems especially inefficient given my location constraints. Why spend time at a non-top-tier company when I could be building my own thing and learning entrepreneurship directly? Direct entrepreneurial experience, even with mistakes, provides faster learning and better aligns with my end goal of freedom through leverage.

Question for the community: Given my goals and circumstances, what crucial factors am I missing in this analysis? For those who chose traditional jobs despite entrepreneurial ambitions, what benefits did you gain that I might be overlooking?

Particularly interested in hearing from people who've successfully made the transition from corporate to entrepreneurship - what would you do differently if starting over?

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Discussion

(11 comments)
  • 2
    Profile picture
    Engineer @ Robinhood
    3 months ago

    I think a lot of early career engineers are seeing peers jumping into entrepreneurship and making a big and flashy impression (likely through LinkedIn). These impressions are surface level and I highly doubt these peers are going to be honest about their current situation. This is to hold up an illusion of success when reality is likely much more stark and harsh. No one's going to be jealous of someone living of discount ramen from Walmart, so why post it?

    Honestly for junior engineers, there are 2 general truths.

    • They can't do anything meaningful. Internships, clubs, etc. build experience, but that experience isn't deep since the durations of those efforts are short and shallow. To build something, you must understand something deeply. If you have not understand something deeply, how will you be able to build a solution for it that people need? And if you need the company to make money, that just increases the activation energy for success 100x.
    • They don't know how to work with people. Similar to experience + expertise above, it takes a long time (more than however many months spent on a club or internship) to have a relationship with people. At some point, you need to interact with people: a potential cofounder, a potential customer, a VC. If you (in your current state) try to reach out to the people that will move your company forward (even with the best idea in the world on hand), nearly all of them will ignore you. And you will have no idea why.

    I'd recommend that you should just work both a standard tech job and doing your entreprenurial work on the side. Your day job will set up foundations of people you can interact with and potential build deep relationships in, give you a baseline of code to write and some structure for you to improve, and work experience to make your background look stronger. You can pull in your learnings about software into your soon-to-be startup & you have a pool of coworkers that could be a potential customer/cofounder or potentially route you to someone who can help you.

    There's also nothing stopping you just finding a job that better aligns with your goals (joining a smaller company) or just shifting your behaviors at work to better align with your goals. My very hot take here is that the folks (working a decently sized company) who are complaining about their work not aliging with their goals just have skill issues & don't want to admit it.

    • 1
      Profile picture
      Software Engineering Intern [OP]
      Taro Community
      3 months ago

      how about this approach - get a job and then push back the start date to allow myself to explore entrepreneurship full-time. this way i am not taking too much risk as i already have a job lined up.

    • 0
      Profile picture
      Engineer @ Robinhood
      3 months ago

      If you feel like you absolutely want to explore before working full time, go for it.

    • 0
      Profile picture
      Software Engineering Intern [OP]
      Taro Community
      3 months ago

      Thanks. I was also wondering how tech companies view "failed" entrepreneurship experiences. Hypothetical scenario - let's say I pursue entrepreneurship for next 3 years, I "fail" and then I decide to pursue software engineering again. Would I still be eligible for entry level SWE role? or will companies reject me just seeing my graduation date?

    • 2
      Profile picture
      Engineer @ Robinhood
      3 months ago

      How companies perceive failure reflects how the experiences end up shaping your career. I'd say >90% of folks who go this route end up failing. And this becomes very clear when you talk to them:

      • They are unable to clearly express how they see the world and how their failures shaped their world.
      • A constant resume of flip flopping between random ideas makes it clear they're just purely treating it as a game of chance.

      3-4 years after graduation is likely the edge of being able to go back to an entry-level role: after that, companies will push towards mid-level+ roles (where your experiences will be scrutinized more thoroughly).

  • 2
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    AI/ML Eng @ Series C startup
    3 months ago

    You have no idea how much pain running a startup can bring. It really can be like having broken glass for breakfast every single morning.

    I think the premise of your questions should be different. Life is a marathon. Instead of jumping the gun and trying to learn everything at once, why not learn aggressively at a sustainable rate? Most of the time, the way to do this is to get a hybrid/on-site SWE job and moonlight on the side. Then, you can go 100% remote for even more freedom. Then, you can quit your job once the startup makes $10-20k USD/month.

    I know you have this patience: you stuck around for a CS degree. But going 5 years at full speed doesn't do you any good if it requires 2 years of therapy to recover.

  • 2
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    Tech Lead @ Robinhood, Meta, Course Hero
    3 months ago

    I quit my very well-paid "traditional" tech job to do Taro, so I'll chime in with a couple thoughts for consideration:

    • Doing a startup is hard - It is almost always harder than people think it will be. I knew it would be hard going in, and getting Taro off the ground was still 2x harder than what I thought it would be. The vast majority of engineers, especially juniors, are already struggling to do the engineering part right. As a founder, you need to also be a product manager, designer, data scientist, salesperson, and so much more. These are all disciplines that normally take years to master.
    • You (probably) need a cofounder - I seriously don't know what I would do without Rahul by my side, and I'm sure he would say the same for me. Yes, solo founders exist and are successful, but they are the exception, not the rule. Only ~5% of our YC batch was solo founders. Being a founder is such a slog, and the emotional toll is near impossible to bear by yourself.
    • Startups only produce learning if you find some traction - This is because you can't really be learning much when you are dead, and making your startup not just flounder and die is already a tall order. It's true that startups teach you way more than any "traditional" tech job, even FAANG (this is something I have said many times and experienced myself), but the caveat is that the startup needs to have some sort of momentum to draft off of. If you spend 1 year agonizingly pivoting 5 times and failing to find any semblance of product-market-fit, you probably would have learned more working at Google or whatever.
  • 1
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    Thoughtful Tarodactyl
    Taro Community
    3 months ago

    So, if you do not have a income source or financial stability, going Entrepreneurship will mean you have to rush, and so not make anything that can really stand out. Also the pressure of paying bills and eating/having a roof over your head will not allow you to focus of what you are trying to create. That is not a good place to be.

    Also you need a lot of skills to run a company, and also to create the MVP of the product, sell it before you can hire others.

  • 1
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    Tech Lead @ Robinhood, Meta, Course Hero
    3 months ago

    If I were you, I would take it a bit more slow. Get 2-3 years of industry experience first and then seriously pursue the startup route. If you can find a job with solid work-life balance, you can hedge and build side projects that hopefully blow up like mine did, opening up a very organic path to creating a startup.

    There are many benefits of getting the work experience first, especially at a top company:

    • Your skills improve - People skills, technical skills, product direction skills (if you work at the right company): There are so many things that working at an already established company helps you with.
    • You create a financial foundation - If you're single, you can save a lot of the money and throw it into index funds (ideally American ones). The US stock market is white hot right now, and I don't see that stopping. You can reap a lot of gains across 2-3 years.
    • You build a network to find a cofounder(s) - Coworkers are the best cofounders as you know that you work well together and how to synergize.
    • You get clout - Clout is helpful in many ways, but tactically, it will help a lot with fundraising. For example, if you're a Google MLE, you are going to have a 5x easier time raising money for your AI startup compared to an MLE that worked for no-name companies.

    In terms of company to work for, I recommend working for a top unicorn like Notion. At these companies, you will still get the startup vibe, but you also get the high pay and prestige for your resume/founder profile. If you can't get into a top unicorn, FAANG is also pretty good, especially Meta (with Google being a respectable 2nd IMHO).

    Particularly interested in hearing from people who've successfully made the transition from corporate to entrepreneurship - what would you do differently if starting over?

    I would have started sooner. As I mentioned before, I think 2-3 years is a good foundation. It only gets harder to start a company as you age (it's still possible, just hard), so you want to do it when you're very young and have more energy. In a vacuum, I wish I could have started with 5-6 years of industry experience instead of 8.

    I recommend checking out this playlist too: [Taro Top 10] Entrepreneurship And Tech Startups

    • 1
      Profile picture
      Software Engineering Intern [OP]
      Taro Community
      3 months ago

      That was very insightful, thank you Alex!

      Honestly, I would love to go and work for a unicorn or faang or any prestigious company. Clout + smart people + learning + so many other stuff. I love being surrounded by smart people - it's like a cheat code to reach success faster. Unfortunately I am an international student in canada (went to waterloo), so my work options are only within canada. Most companies in canada are just not hiring new grads here.

      For context, I was interviewing for Meta new grad (US branch). Went to the final round. But I was rejected because I didn't meet the visa requirements - I was a bit shocked because I thought large companies like Meta do sponsor H1B visas for international students. They have probably stopped doing so in recent years, especially for new grads. I asked the recruiter if I can work for the Toronto/Vancouver Meta branch in canada, she said that is not an option.

      I also got interviews from Scale AI and ~10 other YC / AI startups in the US that raised funding recently. I told them about my visa restrictions and they didn't move forward after that.

      The whole experience was a bit disheartening for me as I really wanted to move to the US, particularly SF. But right now I am just applying in Canada. The only good ones that are hiring new grads here right now are amazon, bitgo, robinhood, cohere, EA. (Most other ones hiring are just "no name" companies - but I don't really want to work in those companies). Applied to all - got interview from bitgo only and an OA from amazon. If you search for new grad swe jobs in canada on linkedin - the number of jobs is astoundingly low. Much lower compared to US where there is a lot of great startups hiring right now.

      My thought was that, I would rather pursue entrepreneurship than work at no-name companies. Some of my friends are doing relatively easier "beginner-friendly" business models like agency, app studio etc (as opposed to running a full-blown startup which is much harder and takes more resources), and they are doing quite good.

      I am still actively looking for roles in canada. What's your opinion on working at no-name companies? For me right now, entrepreneurship seemed better compared to a no-name job, particularly seeing my friends succeed in business and ALSO because I got a co-founder offer from someone for an app that he is building (he is strong at distribution and his previous two apps are each doing $50k MRR - within 6 months of building them).

      How would you navigate my situation?

    • 1
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      Tech Lead @ Robinhood, Meta, Course Hero
      3 months ago

      Wait what, all those companies wouldn't sponsor your visa or let you work in a Canadian office? That's messed up. 😢

      The thing about working at a no-name company is that the work-life balance is often good there. An option you could do is go to one of them and build something on the side with your free time.

      That cofounder offer does seem pretty good too, especially if you trust that person. $50K MRR is a ton of money.

      No matter what you choose, I recommend working on your visa situation in parallel if you can. Seems like coming to the US is more critical than ever.