The Value of Commitment for Startups

In business, at some point, you and your company are going to be shaken to the core. The success of your company will depend on the culture you have built over the years.

There are four types of culture that are prevalent in startups today. I have touched

• Star:  You recruit only top talent, pay them top wages, and give them the resources and autonomy they need to do their job.” This culture encourages competition among employees. A study conducted on 200 startups in 2002, shows that running this kind of culture have a success rate of about 60%, with the chances of failure at about 40%. Please don't get me wrong, superstar employees produce result but, not all superstars work well as a team. And, not all superstars are loyal.
• Bureaucracy: You make sure things are documented, everyone have clear job descriptions, project descriptions, and your setup rigorous project management techniques. This is fine but not the best culture for a startup business where things need to happen fast. This culture resulted in 60% of failure and only gives you a 40% chance of success. Don't get me wrong, it is good to document processes and functions, but as a startup moderation is key. It is a very stressful and time consuming culture to implement for startups where multi-tasking may be highly valuable.
• Commitment: You build the kind of company where people would only leave when they retire. Here you have a team that is close-knit, with a win-win spirit. They are convinced that they are part of a system that cares about their well being. So the put in the best of their time. You value contributions and suggestion from your employees, You take them as your business most valued asset. The study of 200 startup mentioned earlier showed that this culture offers a 100% chance of success.
• Autocracy: You work, you get paid. Your employees have no say in the day to day decision making process. They see their job as a means to get by. This kind of culture is guaranteed to have over 100% chance of failure, because your employees are used and

What will your team do?

• will they put in the extra effort necessary?
• Will they support you?
• Will they walk?

Your team’s belief in the company, and more importantly, their loyalty to the company will be a huge determining factor if things ever get tough. If you really want your startup to win, you need to realize that the most important part of building your startup is not: The market you choose, or the product(s) you sell, or…the amount of money you raise, it’s more about your company culture!