We have heard so many reasons why small businesses face imminent failure. There are potential problems that could happen to us, such as sluggish cash flow, non-viable target market, late payments from clients and lack of business plan. These reasons are generally valid, but it is also important for is define the root cause of failure. In general, business owners should try to build a nimble and focused organization that is able to gain success in the market. Business owners should also be proactive and it is one of the reasons for success in the market. Capability and culture may also play an important role.

In general, we should try to create a culture. The human resources department should be given the job of creating, identifying and fostering a proper culture within the business. However, the true responsibility should belong to all employees, not just executives who lead the firm. HR needs to give training seminars, produce flyers, publish policy, send reminder emails regularly and others. In general, leaders should be able to lead by example and they need to accomplish the culture building effort. If people can’t manage culture, they are not suitable to become a leader. There are different characteristics of business with proper culture.

How to Establish a Proper Company Culture

When we want to create a culture within the company, we often need to imagine the unimaginable. In fact, many business owners think that they are unable to meet specific goals. It means that they need to face especially challenging situations. With proper imagination, people are able to break free from past limitations. Imagination allows us to innovate and we will be able to develop proper solutions, so we can come up with entirely new challenges. We should encourage free-flowing ideas, through brainstorming and continuous innovation. We should prepare more, instead of continuously making new plans.

Often, too many plans will result in near zero implementation. The world is already very complex and we shouldn’t complicate it even further by creating micro-plans. In many cases, changes could happen very rapidly and this could render many of our plans useless. We should make sure that our organization is able to achieve specified goals. In this case, the company will need a group of people who are adaptive, capable and well-prepared. Plans should be related to desired outcomes. We will need to deal with constraints and resources availability. People need to adapt, instead of following rigid and complex plans.

When setting a new culture, we should make sure that people can experiment freely and they should be able to try various alternate solutions. With a bit of freedom, it can be quite surprising to see the amount of results that we could get. We should act in a controlling and heavy-handed manner, because it is possible that we will restrict very capable and innovative employees. In this case, we won’t be able to get the real benefits of the full creativity. While our companies should have specific constraints, they shouldn’t restrict freedom and innovation. In general, we should listen to people around us.