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3 Company Culture Rules That Will Save Your Startup From Implosion

Starting a company without a culture plan in place is asking for trouble. Here’s how to keep the good and ditch the bad.

3 Company Culture Rules That Will Save Your Startup From Implosion
[Photo: roegger via Pixabay]

Startups are classified by their rapid growth and ability to reach and serve a large customer base, but they can also come to be known for spectacular implosions, when rapid growth strains the resources or structure of a company, leading to a complete collapse.

Many startup executives keep their finger on the pulse of the finances and business mechanics of the company. They are always seeking the next round of funding, developing an exit strategy, or working to increase their marketshare.

And while these are critical to a startup’s longevity, equally crucial is an internal stability and a motivated and productive workforce.

Rapid growth can yield profit and investment wins, but in the startup world, extremely fast growth can lead to structural problems if the corporate culture does not grow at the same pace.

In 2014, Twitter experienced some of these growing pains, as employees publicly questioned the direction that CEO Dick Costolo was taking the company, and some key executives left the company as the pressures of growth internal company dynamics combined to create a public crisis for the company.

So how does a startup create a corporate culture as innovative as the software, hardware, or mobile apps that are the base of its business?

1. Be A Coach, Not A Parent

Startup founders must be willing to adopt an office protocol and evaluation process that sets clear objectives but is not so rigid that it eliminates individuality or inspiration. For Dusty Wunderlich, a combination of objectivity and flexibility is crucial for scaling his first-year finance startup.

After founding and operating his first private equity firm at 29, Wunderlich is now taking on underserved industries with digital financing organization Bristlecone Holdings. Despite the company’s accelerated growth, the digital finance entrepreneur turns his focus inward to foster future growth.

Wunderlich, now 33, insists that startups cannot scale a company or grow rapidly if leaders micro-manage or set tight restrictions that prohibit innovation and risk-taking; having faith and trust in all of a team is essential.

“If you hire good people that believe in the core values of the company and give them objective performance measurements, they will do whatever it takes to be successful and adjust their habits based on the objective feedback,” said Wunderlich.

2. Stand For Values Employees Will Fall For

Profit and expansion aren’t the only lightning-speed factors startup leaders need to worry about. Because industries and their respective technologies and consumers also evolve at a rapid pace, startups must establish and cheerlead core values to maintain stability for the team and maintain focus on the core mission.

President of San Francisco’s Endeavor America Loan Services, Darius John Mirshahzadeh works tirelessly to assure employees are hired into a professional family and adopt the values of Endeavor America Loan Services immediately.

“If you want your employees to feel invested in your business, get your people to eat, drink, sleep and live those values day in and day out,” said Mirshahzadeh.

The scaling process doesn’t stop upon hiring, however. To keep the passion and energy riding high, Mirshahzadeh implemented daily and weekly “huddles” both in-person and via cloud, makes personal calls to employees each month to exchange updates, and utilizes incentive-and-reward software like YouEarnedIt to keep everyone on the same page and aligned.

He attributes these corporate culture-scaling successes to his team’s ability to adapt and react with ease and cooperation. In the short year his company has been in practice, it boasts a 90 percent overall retention rate, and continues to add employees and offices that feel more in sync than ever.

3. What Does Not Fit Must Go

Finally, it’s important to accept there what does not fit must go. Win Cramer, president and founder of JLab Audio, found early success with his startups affordable but highly functional headphone and speaker products. Cramer’s quick growth forced him to consistently evaluate his team against corporate culture standards and make tough decisions about who stays and who goes.

“Weed out those that don’t fit, fast,” advised Cramer. “Nothing can be more problematic to the culture of a corporation that’s growing fast than the person that just doesn’t fit in. I’ve made this mistake and hung on too long, and it bit me in the ass.”

There is no greater threat to a startup on rise than the crumbling of its internal team at the hands of a few individuals who do not operate under the core principles of its culture. As the classic adage goes, chains are only as strong as their weakest link. Startups only experience explosive success when they avoid implosions between the office walls.

Constance Aguilar is the Director of Digital Experience at , a media + marketing firm in Reno & Las Vegas, Nevada. She works primarily with software technology startups to develop media and internal communications strategies and assists B2B companies in the implementation of technology to accomplish a variety of sales and management goals.

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