Why do so many startups fail? There are obvious reasons including lack of funding, mismanaged business, and scaling too fast or too slow. However, one reason that causes many startups to struggle and potentially fail may not be so obvious … a misguided company culture.
Company culture is very important. It determines many things, including who you hire and why. It affects the way people work and how they accomplish tasks. It also plays a pivotal role in how successful your startup can grow. By establishing a clear, easy to understand company culture, you will be far better off in creating a cohesive, collaborative, and sustainable startup.
So how do you develop your startup’s culture? The answer is not that straightforward, but answering the following questions can help you figure it out.
1. What values are most important to your business?
2. How do these values shape the ways in which you conduct business?
3. What personality characteristics are most important in an employee?
4. How high are your expectations for employees?
5. What do you need to see or hear to feel confident in your employee’s productivity?
6. How do you want your employees to perceive your business?
7. Can your employees effectively communicate with the customer, one another, and management, to solve problems and implement improvements?
8. What three words describe your startup as a whole?
This list is obviously not exhaustive– but these eight questions are a good start to figuring out what your startup’s culture is and/or should be. So take the time to figure out what is best for your business. A solid company culture can get your startup through a lot of the challenges and pitfalls that lay ahead.
What questions do you think are essential when developing your startup’s culture? Tweet @StarterNoise.
Derek Rundell, is a successful business leader, operator, and serial entrepreneur. Derek has founded, managed and sold businesses in the technology, media and finance industries. He sits on several boards and serves as an advisor/investor to numerous established businesses and startups. Startups are Derek’s real passion, and in addition to building his own portfolio of technology, media and financial ventures, he invests in and mentors startups and entrepreneurs. He is passionate about sharing his knowledge and helping other businesses succeed.