The Importance of Culture When Starting Up With most startups just concerned with surviving, how important is culture?

By Kip Tindell Edited by Dan Bova

Opinions expressed by Entrepreneur contributors are their own.

Q: Most of the startup are only focused on one thing: survival. How important is culture to a startup?
-Kenny Lee Chia Chern

A: I love what famed management consultant Peter Drucker has said, "culture eats strategy for breakfast."

Culture actually drives the value of the business. Culture and the bottom line are not, and should not, be at odds. Having a stronger culture is not a sacrifice to profits. In fact, it's quite the contrary: The companies that are best thought to have strong, conscious cultures and represent the tenets of "Conscious Capitalism" -- a model focused on advancing humanity, while using established business principles -- are shown to outperform the S&P 500 Index 14 to 1 over 15 years.

Related: For Zady, It's Quality Over Quantity

Relationships between your stakeholders – how they feel about each other – is a huge part of how a company's culture manifests itself…of how the company "feels." And when you've developed strong, mutually beneficial relationships with vendors, customers and employees from the start, all of these stakeholders we'll conspire to assist you. They want to see you win. They trust you and you trust them. They're even more vested in your success and want to be a part of it. These actions lead to a stronger bottom line.

Related: The 7 New Business Facts Of Life For Entrepreneurs

And laying the groundwork for a strong, unified, communication-driven, supportive and fun culture at the start is much easier to do than, say, turning the barge around in a river once the company has grown and expanded. Not that over the years a company's culture can't and won't evolve…it will and it should. But if it has grounding from the start, if it binds people together, you're setting the company up for greater success in the future.

Operating this way not only enriches your life and the lives of the people you do business with, but if all you want to do is make as much money as humanly possible then I would submit to you, that this is the way to do it.

Related: A Look Into Entrepreneurial Approaches to Social Change

Kip Tindell

Author and CEO of The Container Store

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Starting a Business

This 'Dream' Side Hustle Out-Earned Her Corporate Salary in 2 Years — Now It's a $2 Million Business

Here's the exact blueprint she used to leave her W2 job behind and step fully into entrepreneurship.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Starting a Business

The Next Chapter of Basketball? Why This New League Is Betting Big on 1v1 Hoops

The Next Chapter is a premier 1v1 league turning streetball culture into a marketable, competitive sport. With unique players and pay-per-view events, the league aims to become a billion-dollar basketball business.

Business News

Deloitte Is Reimbursing Employees Up to $1,000 — For Buying Lego Sets

Each Deloitte employee can spend up to $1,000 on items to improve their well-being.

Growing a Business

5 Steps to Negotiate Confidently With Tough Clients

Negotiation should never be a battle. Follow these steps to shift your mindset and negotiate with confidence.

Leadership

5 CEOs Sat Down for a Candid Conversation — What They Revealed Could Change Your Entire Perspective on Leadership

These five CEOs get brutally honest about leadership, pressure and letting go of control.