Originally published in Forbes.com
If you are an entrepreneur launching a new company, undoubtedly, you are excited about your unique and innovative offerings. And if you are founding a business for social impact, you are likely to feel especially exhilarated. Yet you know that you must do the hard work of planning for your startup.
As you put your business plan in place, do not neglect to include a section on company culture. Some founders believe that business culture requires the company to have employees. They are wrong. No matter whether you have many associates or function as a one-person operation, your business is more likely to succeed with a strong cultural foundation. And planning for it will be one of the most uplifting and essential tasks you tackle.
Every company has a culture. No matter what kind of business you are creating, you should develop a business model, define your values, and clarify how you will interact with customers and other stakeholders. These decisions comprise the basis of your company culture.
Many new businesses fail in the first few years. Most savvy entrepreneurs know, a sound business plan is a roadmap for success. And a description of the company culture is an essential component of it. To increase the chances of your startup succeeding, you should plan for the culture rather than letting it merely emerge organically.
Most business plans include descriptions of the products and services the company will offer, as well as market analyses and financial forecasts. While these components are essential, the outline of the company culture is equally important. A culture, whether planned or not, will emerge and will have an impact on your company’s fate. Even so, too often, entrepreneurs ignore this critical component when writing their business plans.
Perhaps you are inclined to put off dealing with culture until later in the life of your company because you view it as too complicated to tackle. Or you may believe that other issues are more urgent.
Nevertheless, no amount of scheming can prepare you to succeed unless the culture is part of the process. Of course, you may not have all of the answers as you write your first business plan. However the culture plan, no matter how basic, will provide you with a starting point.
If you find you need help in thinking through your desired culture, hire a coach, attend a workshop, or seek advice from your professional colleagues whose companies you admire.
Whether you tackle the pertinent cultural questions on your own or enlist help, you should begin by taking these three steps:
#1 Define your company’s purpose.
Explain why you are starting this business. Of course, one of your reasons is to make a profit. However, if that is your only motive, your company is unlikely to survive for long. You must describe the value this business will bring to your stakeholders.
Your company’s “why” is closely related to your value proposition, i.e., the benefits you will offer to your prospective customers. However, if you are aiming to create a business with a social impact, your task is more complicated. You must focus on the value you will create for stakeholders in addition to customers.
For example, you must consider the role your company will play in the broader society. For example, you might consider how it will improve the lives of your employees, strengthen your community, or positively impact the planet. And, of course, you will need to determine how this purpose will show up in the behaviors of everyone associated with your company.
Your definition of your company’s purpose should serve as your north star for all business decisions. For example, suppose you are starting a consulting firm, and your purpose is to develop workplace environments that promote the well-being of employees. This purpose should have implications for the clients you will pursue, the services you will offer, and how you will treat your own employees and suppliers.
#2 Declare your values.
Once you have articulated a clear purpose, establish your company values. If genuinely integrated into your cultural foundation, these deeply held convictions will have an impact on what you choose to do as well as what you decide to forego in every aspect of your business.
For example, if one of your company values is to be transparent, you should determine what this commitment implies for your company’s behaviors. Clarify how valuing transparency will influence the nature of the information you share with your customers, employees, and others. At the very least, those who value transparency will refrain from hiding evidence of potential problems in products and services and will never engage in fraudulent behaviors.
#3 Identify your stakeholders.
Identify all of the groups who might have an interest in your products and services. Most companies refer to these parties as stakeholders. Ask yourself the following questions:
- How will you interact with them?
- What are their interests and needs?
- How will you address their expectations for you?
- What will you need to do to build trust with them?
- How will you handle differences in the needs of various groups of stakeholder groups?
If you take these three steps, you will have a good start on forming the foundation of your company culture. The alternative is to let it evolve without planning. This ad hoc approach is risky for any startup, but especially for a company established to be a force for good. Remember that many will be watching you and evaluating your authenticity. When you communicate your intentions to create a company for social impact, you will be open to scrutiny.
Your culture plan will prepare you to face the challenges. It will enable you to avoid risks and embrace opportunities. It should offer you an edge compared with your competition. And, best of all, the process of establishing a strong cultural foundation for a social impact startup is fun and enriching. Take the time to include a culture strategy in your business plans from the beginning.
Looking for some help to get started on planning for your culture? We have a short workshop for you. Look at Sustainable Cultures For Beginners. Take a look.
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