Start-up Secrets: Making Culture #1

Start-ups are your classic disruptors. While the percentage of start-ups to break through and succeed in the long-run is relatively low, those that do alter the business landscape in transformative ways. 

In looking over the factors that determine a start-up’s potential for success, one must consider these four aspects:

1.     Timing. The launch of a business matters a great deal. A company with impressive technological advancements in a given industry runs the risk of launching before consumer demand has had enough time to germinate.

2.     Business Plan. Constructing a sound business plan is at the heart of any business, no matter how small. It is within a business plan that the realistic potential of the company is laid out for all to see. 

3.     Market Potential. A start-up could have a huge market potential but lack the acumen to translate leads into sales. The market potential must be relatively strong for a start-up to succeed because in the early days it’s all about scaling up as quickly as possible. 

4.     Team Chemistry. The eternal x-factor is team chemistry. It can set the course of the ship or result in a mutiny that ends the company before it even sets sail. 

Of these four intangibles, team chemistry is arguably most important. A strong team can make up for a weak business plan, but not the other way around. 

How Start-Up Work Culture Differs from Traditional Companies

As it turns out, start-ups have a unique work culture that usually guarantees strong team chemistry from the beginning. It’s almost inherent in the structure of a start-up to have a devoted team of professionals willing to take personal risk in the interest of the company succeeding. 

There is no question that start-up office culture is different from traditional companies. In traditional companies, the structure is set up long before anyone comes into their position as manager or CEO. The structure determines the roles each person plays, and this creates a certain rigidity and immobility within the office. 

This kind of rigidity is absent in start-up offices, which operate on a completely different framework. Here are five valuable aspects of start-up work culture that, in their own way, have begun to change office culture for the better:

1.     Emphasis On Shared Work Space. One of the fascinating aspects of start-up culture is that work space is more open, and properly segmented. Studies have shown that completely open office spaces are bad for productivity. Who was the first to react? Small start-ups, who began creating flexible office spaces that ensured high productivity given existing spatial constraints. 

2.     More Innovative Ways to Cut Costs. Operating on a small budget, but requiring the same infrastructure as a traditional business, start-up offices are always finding ways to do more with less. This innovative attitude is great for team spirit and productivity.

3.     Team-First Atmosphere. The CEO of a start-up is in the thick of it with their team. Weekly hang-outs and group breaks are a common feature of start-up culture which was never really part of traditional office life.

4.     Encourage Initiative. The fragility of a start-up means there is so much room for each team member to shape the future of the company. Giving team members from all positions the incentive to offer solutions brings the best out of people, and does wonders for the company. This incentive is absent in a massive firm with a strict office policy and hierarchy.

5.     Less Hierarchy. Traditional tech companies have become so large that it’s hard to imagine meeting everyone in the team and understanding their unique attributes. Start-ups are designed to break down the business hierarchy and let the best ideas win the day. 

Rounding It Up

Of all the innovative aspects inherent to the business model of a start-up, perhaps the most enduring impact will be in office culture. The re-arranging of traditional pillars of office life have proven to increase productivity and employee satisfaction – and we know how important team chemistry is to the success of a business.

This article was reposted with permission. Originally published by Morgan Hill Partners: "Startup Secrets: Making Culture #1".

ABOUT THE AUTHOR:

Jim Barnish is founder and CEO of StartUp Solutions, a boutique consulting firm helping entrepreneurs/startups build scalable and fundable (VC-ready) solutions, methodologies and business processes. Jim's 10+ years of experience as a strategic change leader in global and integrated operations, sales, and marketing uniquely qualifies him to the lead the firm. Over the course of Jim’s career, he has successfully worked with companies undergoing accelerated business development, process improvement, change management and operational transformation initiatives