Imagine this - you have juggled five different tasks, learnt three varied skills in the past three days. Yet, you are running with 80% of your fuel and momentum at the end of the week. Have you heard of this before?
This is what typically happens when you work in a startup - an organisation with fewer employees working on many things at once to ensure smooth value delivery. This is often referred to as the culture of a startup, which makes us question what the term even means.
What is a startup culture?
Startup culture is a distinct combination of values, behaviours and beliefs that shape the startup organisation. It guides how work is carried out and influences how employees operate day-to-day.
A defining characteristic of the startup culture is a non-hierarchical organisational structure with distributed decision-making. Employees take on tasks and stay accountable for their deliverables. This culture prioritises flexibility, creativity and a growth-oriented mindset. The advantage here is the lack of hierarchy, which allows all employees to express their opinions and perspectives.
What are the characteristics of startup culture?
There are a few defined traits that are characteristic of startup culture:
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Creativity: Startup culture typically motivates employees to adopt a creative approach towards problem-solving. It prioritises fresh perspectives and encourages employees to approach problems from different viewpoints.
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Innovation: Startups are driven by innovation and are always on the lookout for better solutions. This involves questioning the existing solution and adopting out-of-the-box thinking.
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Risk-taking: Startups are never hesitant to take risks and are ready to step beyond their comfort zone. They know risks must be calculated, not random, and that they can lead to substantial rewards.
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Collaboration: It is a pivotal element of the startup culture. Startups nurture transparent communication and teamwork, promoting employees to openly discuss insights and collaborate.
What is the actual spirit of a startup?
Let us now define the exact spirit of a startup, which is the crux of this write-up.
Harvard Business Review (HBS) defines it as an intangible, core element, like energy or a soul. This supports enthusiasm and encourages a meaningful connection and collective purpose. This spirit sustains high engagement while businesses maintain their competitive advantage.
How to hold on to the startup spirit?
The key is not to fear making mistakes. It is absolutely normal for people to make mistakes, but ruminating over them doesn’t help in developing the business. This is also related to having the right kind of mindset - a growth mindset as opposed to a fixed mindset. People with the former are able to tackle challenges, persevere, even in the presence of obstacles, while those with the latter kind of mindset usually have a rigid view of their capability and think that they can’t change it.
It is also normal for people not to be naturally talented at running a business. But investing time in learning the necessary skills and recognising the mistakes will help them cover that gap fast.
Why is the entrepreneurial mindset important for startups?
Another aspect of startup culture is that employees gain an entrepreneurial mindset owing to a high sense of task ownership. This mindset motivates them to recognise opportunities, act independently and create innovative solutions. People with this mindset are typically good at problem-solving, a trait that is critical for performing well at startups. This plays a major role in scaling up the business.
While we have already covered the characteristics of startup culture, let us understand them better with examples here, as they are equally relevant in the context of an entrepreneurial mindset. The first instance highlights the role of risk-taking and courageous decision-making in startups - SpaceX is a company founded by Elon Musk. It started with the primary objective of employing reusable rockets to transform space travel. It was a mammoth vision and required heavy financial investments and strong technical skills. But, SpaceX persevered even in the face of challenges and failures and eventually accomplished launching and even landing these rockets. They took calculated risks and made brave decisions, and redefined the space industry, creating the path for future space exploration. In the earlier stages, decision-making is agile in nature, as the firm has constrained resources and strict deadlines - this helps in adapting to the market and pivoting, if necessary.
The second example illustrates the critical role of innovation and creativity in startups. Airbnb is a brand that revolutionised the hospitality and travel industry, wherein people could rent their homes or spare rooms to travellers. It allowed travellers to enjoy distinctive, budget-friendly accommodations and gave homeowners a way to earn from their spare space. Their innovative idea and platform unlocked an emerging market and revolutionised the travel experience. Startups challenge existing solutions by innovating and coming up with a better solution that typically disrupts the entire market. What facilitates this is an emphasis on continuous improvement and iteration. They refine their initial concept ideas based on market demand and customer feedback until the desired stage is reached. This helps them innovate and also adapt quickly to market changes.
How to build a startup culture?
There are five steps in this process:
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Set core values: Always define the core values of your startup with clarity and ensure they align with your mission and vision. They should also provide a clear guide for decision-making.
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Lead through example: Leaders take on a vital role in influencing culture and must ideally model the values they want to see in employees.
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Bring in the right cultural fit: Focus on cultural fit during recruitment and choose candidates who share your startup’s values and have an entrepreneurial mindset.
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Promote accountability: Provide employees with independence to be accountable for their work and decisions. Encourage creativity and the generation of new ideas.
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Build a collaborative culture: Support collaboration by motivating employees to exchange ideas and work together towards shared goals.
Startups also come with their fair share of challenges, like maintaining the culture even as the company scales up, managing conflicts arising due to diverse employees from different cultures and balancing short-term goals with long-term vision. They must be aware of navigating the ever-changing landscape of technology and innovation, as well.
The true test of a startup is not how fast it grows, but how well it holds on to its way of thinking. Processes will evolve, and teams will expand, but curiosity, ownership and courage should remain. When this spirit is protected, growth feels purposeful rather than chaotic. That is what keeps startups alive long after the early days.
