Startup Culture Is Broken—And It’s Costing You More Than You Think

“Here’s to the crazy ones, the misfits, the rebels, the troublemakers, the round pegs in the square holes… the ones who see things differently—they’re not fond of rules… You can quote them, disagree with them, glorify or vilify them, but the only thing you can’t do is ignore them because they change things… they push the human race forward, and while some may see them as the crazy ones, we see genius, because the ones who are crazy enough to think that they can change the world, are the ones who do.”

—Steve Jobs

Startups are supposed to be hotbeds of innovation—the breeding ground for big ideas, disruption, and boundary-pushing solutions.

But if that’s true…

Why do 90% of startups fail?

Why do so many founders burn out, teams collapse, and once-promising companies fizzle out before they ever hit their stride?

I’ve spent 25+ years in the talent domain, working with startups that scaled, startups that failed, and startups that are still trying to figure it all out. And the truth is—most of them have the same blind spots.

Startups Think They’re Different… But They’re Making the Same Mistakes as Corporate Giants

Many startups believe that because they have smaller teams, more agility, and fewer bureaucratic hurdles, they don’t need to worry about leadership development, team dynamics, or structured growth strategies.

Wrong.

If anything, startups need strengths-based leadership even more than large corporations do.

Because when a team is small, every strength (and every weakness) is magnified.

In my career, I’ve worked with both fast-scaling startups and global organisations. I’ve watched how traditional workplaces fail their people—but what’s frustrating is that most startups don’t do any better.

They say they value innovation, agility, and disruption.

Yet, they still:

?? Hire fast and fire fast, instead of investing in strengths.

?? Prioritise technical skills over people skills, assuming culture will “work itself out.”

?? Expect people to “figure it out” rather than equipping them with strengths-based leadership.

?? Burn out their best people because they think hustle culture is a strategy.

Where Most Startups Get It Wrong

If you’re in a startup—or leading one—these are the five biggest mistakes I see over and over again:

1?? They Think Agility Means No Structure.

? Many startups believe that process kills innovation. But the lack of structure often leads to misalignment, inefficiency, and burnout.

? The best startups aren’t just “agile”—they create a culture where strengths drive strategy.

2?? They Confuse Hard Work With High Performance.

? Startups love the hustle mentality. But grinding longer hours isn’t the same as delivering better outcomes.

? High-performance teams know how to work smarter, not harder—because they leverage their CliftonStrengths to maximise impact.

3?? They Promote High Performers Without Leadership Development.

? Just because someone is great at their job doesn’t mean they’ll be great at leading people.

? Many startups promote based on competency, not leadership potential—leading to disengagement, weak management, and cultural cracks.

4?? They Mistake Unfiltered Feedback for a Strengths-Based Culture.

? Brutal honesty isn’t the same as constructive, strengths-based feedback.

? Many startups lack the skills to coach, develop, and empower their teams—leading to toxic work environments where feedback feels like criticism, not growth.

5?? They Hire for Fit, Not for Innate Talent.

? Startups prioritise quick wins over sustainable success. They look for people who can “fit the culture” today, rather than those whose strengths will shape and elevate the culture tomorrow.

? Great startups don’t just hire for experience—they hire for strengths.

The Cost of Getting This Wrong? $8.8 Trillion.

?? Employee disengagement costs the global economy over $8.8 trillion in lost GDP. ??

Yet when you ask startup founders what their most important asset is, they always say: “Our people.”

Really? Then why are so many employees miserable?

Why do so many teams burn out?

Why do so many startups struggle to retain their best people?

Because culture isn’t just ping-pong tables and flexible hours.

It’s how people are led, developed, and recognised.

What Strengths-Based Leadership Looks Like in Action

A few years ago, I worked with a startup leader who was struggling with a disengaged team. They were talented, but the startup grind was wearing them down.

I introduced CliftonStrengths coaching and strengths-based leadership strategies. We identified each person’s unique strengths, blind spots, and ideal work styles.

The result?

That team went from struggling to thriving in just 9 months—outperforming teams twice their size.

The lesson?

Startups don’t need more hustle.

They need leaders who know how to unlock the full potential of their teams.

If Startups Want to Succeed, They Need to Strengthsify.

The best startups don’t just scale fast—they scale smart.

They don’t just hire talent—they develop it.

They don’t just push hard—they push in the right direction.

They don’t just demand innovation—they build cultures that nurture it.

?? This is what we do inside Decoding Your Strengths. ??

If you’re a startup leader who wants to strengthsify your team, build a culture where people thrive, and stop repeating the same mistakes that sink 90% of startups…

Let’s talk.

Drop a “YES” in the comments if you want your startup to be in the 10% that succeed.

Or send me a DM if you’re ready to build a strengths-based, high-performing team.