Remember your first business loan? Or, if you’re like many entrepreneurs, you may have initially bootstrapped your startup by buying some stuff on your credit card. You were excited and apprehensive: Excited because now you had the cash to invest in your business, apprehensive because you had just taken on a debt you would have to repay.
But that was okay, because you were confident you could create more value than the interest you would pay. Even though you eventually have to pay off a financial debt, gaining access to the right resources now often marks the difference between success and failure.
That’s true for financial debt – but it’s almost never true for culture debt.
Culture debt happens when a business takes a shortcut and hires an employee with, say, the “right” the skills or experience… but who doesn’t fit the culture. Just one bad hire can create a wave of negativity that washes over every other employee, present and future – and as a result, your entire business.
Unfortunately the interest on culture debt is extremely high: In some cases you will never pay off the debt you incur, even when a culture misfit is let go or leaves.
Here are five all-too-common ways you can create culture debt that can keep your startup from achieving its potential:
1. You see the ivy and miss the poison
The star developer who writes great code… but who also resists taking any direction and refuses to help others… won’t instantly turn over a new interpersonal leaf just because you hire him.
The skilled salesperson who in the short-term always seems to outperform her peers… but who also maneuvers and manipulates and builds kerosene-soaked bridges just waiting to go up in flames… won’t turn into a relationship building, long-term focused ambassador for your company just because you hire her.
Join TechMeetups presents #TechStartupJobs Fair New York 2014 at Manhattan Movement and Arts Center, 248 West 60th Street , New York, NY 10023, Tuesday, April 15, 2014 from 6:00 PM to 9:00 PM (EDT)