Start-up vs Product company

As per business standard, Paytm which is valued at $1.5 billion has only 150 employees (mostly field sales responsible for marketing & enrolling merchants).

So value of the company per employee = 10 million dollars.

Zomato shares the same story and so does most of the startups.

 

 

Typical IT companies with 100,000 employees are valued at 10 billion dollars

Value per employee = 100,000. Or 1% of the start-up.

 

People crib about the risk & crazy salary structure of the start-up which is linked with the stock options etc. However end of the day a start-up employee is able to generate 100 times more wealth for their employer. Hence it is likely they will be valued more (maybe not 100 times but respectably good number). End of the day, a employee is happier & more respected in a scenario where they are able to maximize the wealth they can create for their stake-holders.

This means a complex matrix mapping of one’s aptitude & the wealth they can create. The myopic view of many freshers to go for the job that pays the highest starting salary might not serve them best in the long run. Instead one needs to find out a way to maximize the wealth they can create and ensure that a good share of that flows to their bank account. (Assuming that the work-life balance is almost equal among all options)

 

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