How to Build a Strong Culture in Start-ups and SMEs

One of the attractions of a start-up or smaller business is often the culture. It doesn’t feel like anywhere else because it has its own identity. This unique culture is what attracts and convinces new starters to join. They feel they’ve found something special. But then, inevitably, growth happens, and the organisation is fast on its way to becoming an SME. While that might always have been the plan, that special culture can get lost in transition.

Suddenly, founders are running businesses considerably bigger than they are used to. Priorities change, and along with this, the ‘feel’ of what it was like to work there shifts. I use the word ‘feel’ because we all have an emotional engagement with our workplaces, whether that’s positive or negative.

If culture matters to the people who joined, how do you keep that special something bottled? What can you do to ensure you don’t lose the essence that everyone has invested so much time and energy into building? How do you build a strong culture in start-ups and SMEs?

Here are my tips to protect and nourish your culture, gained over a 30-plus year career building highly engaged teams and cultures.

Don’t Put in Too Much Structure Too Soon

Let me take you back to the court of King Arthur. In many ways, he created the ideal culture for a start-up. His round table ensured that everyone felt equal, everyone’s opinion counted, and all of the Knights had equal access to the boss, King Arthur himself. Being the stuff of legend, reports vary on how many knights sat at the table. It may have been as many as 150.

If King Arthur felt that was too many to manage, he might have considered structuring smaller teams, creating team leaders, and reducing access to him. It might have made his life easier, but his Knights might have resented these extra layers. It’s inevitable that a business will scale, but be careful not to make any new structure appear as if it’s taking away the trust and empowerment your people are used to.

Recruit to Fit Your Values First

As you add more people to your team, the chances of new starters coming on board who aren’t in tune with your company values and culture increase. It’s easy to see why this happens. Owners can be concerned about getting an exact fit for the skills they need; after all, the first few hires are a big investment. However, overlooking how aligned they are to your values can be a costly mistake.

I always advocate recruiting to fit the values an organisation holds first. While there has to be some indication they can do the role, I would choose a lesser-experienced candidate who’s aligned with your values and culture over someone who ticks all the skills boxes. When I was the People Director at sustainable energy provider Pure Planet, it was a given that new hires shared our eco-friendly objectives. Training is much easier than forcing a square peg into a round hole.

Put Culture at the Centre of Your Onboarding

You’ve hired someone you know will be a good fit. So, make sure they experience that culture from day one. It’s a great way to make them feel they’ve made the right decision. You could give a presentation on your culture and values, but it’s far more authentic if you demonstrate them through your actions. If you’ve talked about your leaders being visible and present in the business, why not show that by involving them in your induction?

Communicate Your Good Stuff

If you have evidence of how you’ve made a difference—to your customers or your community—make sure those who work for you know. If you want remote workers to feel more engaged, make that happen. I’ve seen tech platforms like Slack and Teams used effectively to share good news and help teams get to know each other. The key here is that it takes time to set this up; it won’t happen without someone owning communication and driving it.

Don’t Lose Focus on Your Purpose

You formed the business for a reason, perhaps driven by a cause and an idea that will make a difference. This is powerful when it comes to engaging your people. Research by McKinsey found that 70 percent of employees said their sense of purpose is defined by their work. The title of their article is ‘Help your employees find purpose or watch them leave.’ I couldn’t have put it better myself. What you do has the potential to play a big part in helping your employees find their purpose and live it. That’s why you should never lose your focus on why you do what you do.

Embrace Feedback and Adapt

As your organisation grows, it’s crucial to embrace feedback. Regular check-ins with your team can provide insights into how they feel about the culture. Are they still aligned with the company’s values? Are there areas for improvement? By being open to feedback, you can adapt and make necessary changes to maintain a positive culture.

Celebrate Milestones and Achievements

Celebrating milestones and achievements can significantly boost morale. Whether it’s a successful project completion or a team member’s work anniversary, recognising these moments fosters a sense of belonging. It reminds everyone that they are part of something bigger and that their contributions matter.

Foster Collaboration and Team Spirit

Encouraging collaboration among team members can strengthen your culture. Create opportunities for team-building activities, both in-person and virtual. When people work together, they build relationships and trust, which are essential for a strong culture.

Encourage Work-Life Balance

Promoting a healthy work-life balance is vital for employee satisfaction. Encourage your team to take breaks, use their vacation time, and disconnect after work hours. When employees feel supported in their personal lives, they’re more likely to be engaged and productive at work.

In Conclusion

Growth is exciting, but it also has the potential to damage the culture that attracted your first hires—and your first customers too. These communication and engagement tactics will help keep your company’s culture strong as you become an SME, ensuring your people remain engaged with your purpose, no matter how big you get.

If You Need Any Extra Help

I’m passionate about helping create engaged, inspired, and highly productive teams and cultures. Do feel free to contact me if you want to chat through a scenario or need my help.

Photo by Nathan Dumlao on Unsplash