decoding startup culture: 10 tactics to make your startup successful

Andy Stofferis • Apr 29, 2024 • 9 min read

To find success, startup founders need a unique vision, creativity, passion, great communication and leadership skills, and the ability to be adaptive.

Bolt is a successful Estonian startup — Photo: Silver Gutmann

Around the world, cities and countries embrace different startup cultures which can greatly influence the success of local startups. From motivating employees, to making staff feel included, and fostering innovation – startup culture is a critical success factor that shouldn’t be underestimated.

Below we explore what sets startups apart from traditional businesses, and some of the key factors that are critical to startup success. These include their ability to hire the right people, to stay nimble and adaptable, to attract funding, and to create an inclusive and dynamic company culture.

We also look at examples of leading Estonian startups and at Estonia’s approach to startup culture.

What is a startup?

While there’s no single definition of a startup, several common factors characterise them. Usually, they represent a business in the first stage of operations and are created by founders using their own funds. Generally, they have been newly created to build an innovative tech product or service and are still in the process of trying to find a market in which to grow and scale their operations. They have a fast-paced strategy aimed at rapid growth and scaling of operations.

Startups range in size, number of startup founders, and the industries they operate in. Quite frequently startups are initially funded by their founders, until they are able to get venture capital, seed capital, or some other type of capital investment to help them grow.

Certain countries, such as Estonia, are known for their thriving startup cultures and communities. In Estonia, there are already over 1300 startups and 10 unicorns, making it the number one country in Europe for unicorns per capita.

There are many Estonians starting businesses there, as well as lots of foreign entrepreneurs who see the benefits of starting a company in Estonia. Thanks to e-⁠Residency, foreign entrepreneurs are able to quickly and easily establish and run a startup in Estonia from anywhere in the world.

E-Residency makes business easy at all stages

Free your time with digital services that are seamless and efficient, whether establishing, administering or growing your business.

How startups are different from traditional businesses

Start-ups are quite distinct from other traditional businesses. Many of the most successful businesses today, began as startups. From companies like Meta (formerly Facebook), to Apple, and Uber.

Startups range in size from being a single, solopreneurial business, to a large-sized startup with 100 employees. They also operate across a range of diverse sectors - from healthcare, AI, cybersecurity, and deep tech, to blockchain and fintech.

Here are a few characteristics that make startups unique and different from traditional businesses:

Startups are based on entrepreneurial ideas: Startups are inspired by entrepreneurs who want to solve a challenge in an innovative way by providing a unique and novel product or service, which often needs to be tested in the market.
Startups are poised for growth: most startups begin small but have the goal of rapidly growing and scaling their operations to emerge as new market leaders. They are often funded by a small group of founders, and aim to grow by attracting funding needed to scale.
Startups are based on innovation: most startups aim to provide an innovative new business product, service, or model which they think there will be high demand for. Startups typically try to solve problems and many focus on future megatrends like the growth in renewable energy, deep tech or innovative healthcare. Startups aim to change the way things are traditionally done, by anticipating market needs and trends.
Startups are all about being able to adapt and pivot: most startups are in the early stages of development, often testing models, frameworks and prototypes or identifying their target market. As such, they pride themselves on being nimble, adaptive, and lean so that they can pivot and adjust their offers to suit changes in the market and needs. The ultimate goal is developing a sustainable business model that will be the bedrock of their growing enterprise.

What it takes to succeed & build a great startup culture

With thousands of startups around the world, and a thriving global startup culture and community, you may be wondering what it takes to succeed as a startup.

There are many factors that shape success. Startup founders need a unique vision, creativity, passion, great communication and leadership skills and the ability to be adaptive.

Below is a list of 10 tactics that can specifically help startup founders succeed:

1. Create a robust go-to-market strategy

One of the top factors in being able to scale and grow a startup, is having a well-planned strategy for how you plan to take your products or services to market. This includes knowing your target audience, competitors, unique value proposition, and having an idea of how you plan to structure your team and what roles will be required. A great way to consider and build such a strategy is to make a business plan for your startup.

Startups also need to know how to price their products and services optimally, and what distribution channels they will use. Furthermore, having a well fleshed out sales and marketing plan is critical for success and promoting your products.

2. Build an inclusive, dynamic and accountable company culture

Cultivating a positive company culture has many benefits for organisations, but requires an intentional mindset.

Building an inclusive, dynamic and accountable company culture can help companies attract the top talent and retain talent, as well boosting creativity and innovation. This can help startups grow and thrive.

3. Maximise your ability to attract funding

Attracting funding is another crucial milestone for most startups. Whether funding is a result of founders bootstrapping the startup themselves, crowdfunding, or getting financial loans, most startups look for venture capital or angel investments to help them scale their growth exponentially.

The ability to successfully attract funding is what often differentiates successful startups from others.

Funding, grants and growth

Estonia loves ambitious entrepreneurs, which is why there are multiple opportunities and resources available offering support for e-⁠resident businesses.

4. Understand and minimise your risks

Understanding the risks associated with your startup is the first step towards success. This involves identifying potential problems with your business model, regulatory environment, product, pricing and other aspects of your plan. Once you’ve identified risks you can then take steps to mitigate them.

5. Network and collaborate with the startup community

Networking can be a powerful tool for startups which can lead to partnerships, mentorships, technological innovation, and funding.

Estonia’s vibrant startup ecosystem offers a close-knit community of entrepreneurs, with many events and opportunities for networking and engagement.

6. Hire the right people

Hiring the right team, with the right skills and vision can help ensure startup success. By hiring people with diverse skill sets and unique experiences and perspectives, your team can help innovate and collaborate to grow the startup.

7. Stay lean and nimble

In the startup world, the ability to remain agile is a necessity. Being able to adapt to changes in the market, geopolitical situations, and megatrends is what can help startups to gain new markets, adapt their products and business offerings and overhaul business models when needed.

8. Have a unique and powerful value proposition

What sets your startup apart from your competitors? The answer should reveal your unique value proposition, which is how your business plans to solve a problem and help your customers do something in a way that your competitors can’t (or at least can’t easily replicate).

9. Position your brand using strong marketing

Creating a strong brand helps distinguish your company in an often crowded marketplace. That’s why startups need to build a brand and market it in a way that reflects your values and unique style, so you can reach your customers and show them what you do and how your company is different.

10. Adopt a dare-to-be-different mindset

Many successful entrepreneurs and startups have a growth mindset and are often seen as trailblazers, forerunners of their time, and having a maverick or dare-to-be-different type of mindset.

Embracing this can help you view obstacles as opportunities and can help you develop mechanisms to be resilient and adaptive.

10 tactics for success and good startup culture

Estonia’s unique startup culture: the magic factor for startup success

Globally, there are a huge number of startups, with some notable examples that include Amazon, eBay, Apple, and Meta.

Estonia has a unique startup culture and boasts the largest numbers of startups in Europe, according to the State of European Tech 2022 report. Estonia is home to over 1452 startups.

There are numerous examples of successful startups in Estonia. Probably the most famous example is Skype, which seems to have sparked the start of the unicorn nation’s startup ecosystem successes. Since eBay acquired Skype for $2.6 billion, many others have followed suit to make Estonia a globally recognised hotbed for thriving startups. These include Wise, Bolt, Playtech, and many others.

Among the many factors responsible for startup success in Estonia, is the ability of Estonian managers to create a positive and welcoming company culture that motivates employees. Having a friendly and cohesive team, suitable work arrangements and flexibility, and a competitive salary are among the factors that motivate employees in Estonia, according to the study.

Another factor that sets Estonian startup culture apart from many others in the world, is the fact that their leaders are testing the validity of management trends like benchmarking and organisational learning - and instead finding management styles and techniques that work for them.

Read more about why Estonia is a great place to build your startup:

What makes Estonia a great place to build your startup?

According to angel investor and startup expert Martin Goroško, there is something "magical" happening here.

This article was written by guest contributor and seasoned digital nomad Andy Stofferis (www.andysto.com).

Share this article:

Facebook

X (ex-Twitter)

Is e-Residency for me?

decoding startup culture: 10 tactics to make your startup successful

What is a startup?

How startups are different from traditional businesses