You can be on Entrepreneur’s cover!

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

By Kip Tindell

entrepreneur daily

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.

Business News

A Non-Profit Newspaper Published a Column Criticizing Facebook. Then Meta Blocked All of Its Posts.

Facebook's communications chief said that the posts were removed because of "a mistaken security issue."

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Walmart Shoppers May Be Eligible for $500 After Settlement

Walmart shoppers who purchased weighted goods or bagged citrus in the U.S. or Puerto Rico from late 2018 through early 2024 might be eligible for a share of a $45 million settlement.

Business News

Elon Musk Reveals When Tesla Will Release Its First Robotaxi

Tesla's CEO says the fully autonomous Tesla taxi is arriving soon — in 122 days.

Business News

Total Solar Eclipse 2024 Live Feed: Where, When and How to Watch the 2024 Eclipse

Here's what to know about the total eclipse 2024 and a live stream from NASA.

Growing a Business

Stanford Professors On the Counterintuitive Strategy That Helps Google Hire Top Talent

We assume that the best processes are seamless, but a little friction can go a long way.