Reliant on a very small number of clients. Uneven work flow means you'll be slammed one week and trying to look busy the next. You face a high probability of being laid off as soon as work slows down, or fired for some alleged misdeed.
Faddish management practices like "unlimited time off" mean you get time off when, and if, they feel they can afford it, regardless of what you may have negotiated.
Atmosphere can be oppressive, dysfunctional and miserable at times, depending on the CEO's mood.
Totally arbitrary policies change from day to day. You are "no longer allowed to talk to project managers about the project you're working on"----seriously?
Senior management stays holed up in their office studying the latest "managing your small business" self-help book, cooking up the next wacky policy miracle while studiously avoiding the actual hands-on management of their business.
Everyone is equally "empowered" in this workers paradise, so forget about owning a project or giving it direction. It's a free-for-all. Your work will be changed dramatically, at will, by whomever feels like changing it, for whatever reason. Save your comps.
Like a lot of small companies, the ultimate decision-making power rests in one guy who is usually unavailable to make a decision. Veering between "why are you bothering me with these DETAILS ?" and "why was I not kept in the loop?", everyone is kept guessing about what he wants that day, and praying they guess correctly. You probably get the picture. If you don't, you might still find this an acceptable place to work.