Founders spend years getting their businesses ready for private equity investment or sale, often viewing this key milestone as the pinnacle of their company's journey. But very few focus on developing a culture that’s agile enough to flex when the cash hits their account.
The result? Performance takes a nosedive or doesn’t live up to investor expectations. Both of which impact the culture of an organisation.
‘Start-up mentality’ and an ‘entrepreneurial spirit’ are how many small to medium-sized businesses often describe their culture. Being courageous enough to get out there and make their mark on the business world takes something special. But getting a business ready for investment takes a gargantuan effort, and often means leaders take their eye off the day-to-day. Which makes realising the benefit of any investment extremely hard.
If the key for businesses post investment is scaling, these are the three things SMEs and founders need to think about when it comes to building a culture fit for growth:
Align your people behind your purpose
Set a clear vision and purpose for the organisation, and empower your team, however small, to deliver that. The more they feel like they have ownership, the faster you will be able to go.
Make sure that your purpose is overtly woven into everything you do. How you do things is as important and what you do and why you do it.
Don’t make investment the end game. Often investment is the beginning of a new and potentially even more exciting chapter. Make the vision and story about delivering your purpose not just getting a deal.
A critical group to keep aligned is your leadership team. Building a business takes its toll, and whilst the upsides are vast it takes effort to make sure everyone is pulling in the same direction. Especially when your exec are temporarily focused on securing an investment deal.
Three key things to remember;
Make sure efforts are balanced and use it as an opportunity for the next generation of leaders to step up – so when that investment hits you have more people to help realise the benefits.
Invest time on agreeing the story you need to tell to your people and customer.
Ensure that the checks and balances are in place to ensure that decisions that are made are for the long term prosperity of the business not short term gain of a few who might benefit from the deal.
All of these things, unless carefully managed can make or break your ability to build culture that is fit for the future.
Build for scale
The foundations of a business are key if you want to scale. The number of businesses post investment that are trying to put in place the basics in terms of process and policies is an eye opener!
It slows things down at a time you, and your investors, should be focused on growth and accelerating. Put the infrastructure and rigour in place for the business you intend to be, not the one you are today.
It will help you move faster, and adapt to change when the opportunities arise and puts into the DNA of the business a mindset and set of behaviours that are future fit.
Build a diverse business
If you build a business that is powered by a workforce that is reflective of society, that habitually involves, co-creates, communicates openly and honestly, and makes space for people to feel recognised, valued, and like they belong, you will hit gold.
And baking these things in from the start is critical. Recruitment, retention, innovation, and motivation will be easier, and your brand stronger.
Make DE&I just the way you do things from the start.
Don’t loose sight of the fact it’s the team you have that enabled you to achieve the deal. They may or may not have benefited directly from it, but make sure they benefit from the next stage. The what’s in for me will weigh heavily if they can't see the benefit overtly and you will loose them if you don’t engage them effectively.
If you are looking to scale your business, align your leaders or build a culture fit for growth get in touch hello@unitedcultureco.com
