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As an entrepreneur with 17 years of experience and now working on my fourth company, I have become hyper aware of how vital it is to protect the company culture. Building a successful company is about much more than hitting revenue goals or scaling quickly—it's about fostering a healthy, vibrant workplace where your team can thrive. or toxic culture it will undermine it faster than you can imagine.
Here are some hard-learned lessons I've gleaned over the years about identifying toxic culture and, more importantly, how to fix it before it's too late:
1. Toxic culture doesn't always seem toxic at first
It's easy to think of toxic culture as blatant negativity, conflict or disrespect. But in my experience, it starts in much more subtle ways: passive-aggressive comments, cliques, communication breakdowns, and employees feeling like they can't speak up.
In one of my previous companies, I didn't notice these red flags until it started showing up in our results – people missing deadlines, more frequent sick days and a noticeable drop in team morale. By the time I realized it, the culture had already begun to rot from within. The toxicity starts small, but its impact increases quickly.
Related: These Toxic Behaviors Are Employees' Biggest Frustrations – Is Your Company Guilty of Them?
2. As a leader, you set the tone – always
One of the biggest mistakes I've seen leaders make is thinking that the culture will take care of itself. There isn't. You, as an entrepreneur or business leader, are responsible for setting the cultural tone.
As a leader, make a conscious effort to do so lead by example. This means being transparent with my team, reinforcing our core values and creating a space where everyone feels heard. It's not enough to say you have great company values – you have to live them every day. If the leader isn't walking the talk, no one else will either.
Keep a pulse on your team's dynamics. Regularly check with employees at all levels – not just your managers – to uncover unspoken problems that may be festering.
3. Toxic culture drives away talent—and fast
It's not just productivity that suffers when a company has a toxic environment – it drives your best people out the door. One of the most painful lessons I learned early on was losing talented employees because of issues I didn't address in time.
A toxic culture drains creativity, enthusiasm and the will to persist. A powerful way to rebuild culture in your company is for all employees to take ownership of their work, collaborate freely, and feel proud to be a part of something meaningful. When your team feels valued and supported, they will stick around. They will leave when they don't, no matter how great the product or payment is.
Related: Do you work for a toxic company? Here are 4 not-so-obvious signs to watch out for.
4. Don't wait – address problems immediately
If you see signs of toxicity – address immediately. Delay is dangerous. In my experience, waiting to have difficult conversations only allows the problem to fester. Be it poor communication, office politics or someone undermining your company's valuesthese issues must be faced head on.
I have adopted a zero tolerance policy regarding behavior that threatens our culture. That doesn't mean being ruthless—it means being firm about what the company stands for and making sure everyone aligns with that vision. Sometimes difficult decisions have to be made. Letting toxic behavior slide, no matter how small, is a slippery slope.
5. Culture is a living thing – nurture it
One of the most important lessons I've learned in 17 years as an entrepreneur is that culture is not static. It evolves as your company grows, your team changes and new challenges arise. That's why I'm constantly checking in with my team—gathering feedback, gauging the atmosphere, and making sure we're staying true to our values.
Protecting your culture is an ongoing process. It's not something you can set and forget. You have to nurture it, keep it under control and make sure it grows in a healthy direction. After all, your culture is one of your greatest assets – don't take it for granted.
Related: If you do any of these 3 things, you may be a toxic coworker
Ways to be proactive in creating a great culture
1. Hire for culture fit, not just skills: When we hire, we don't just look for the most qualified candidate; we look for people who match our values and bring a positive attitude to the team. It's easier to learn skills than to fix a toxic personality. Make cultural fit a key part of your hiring process – you can't build a great culture with people who do not match your vision. However, this is a hot topic. If you put too much weight on culture fit, you can damage your company's culture – don't neglect the necessary and critical skills required. When you fill a company with great people who lack skills, those who do tend to get frustrated very quickly.
2. Create a feedback-rich environment: I've found that creating an open environment where team members feel safe to share feedback is essential to maintaining a healthy culture. Encourage regular and honest communicationwhether this is through structured reviews or random checks. We make it a point to listen—both to celebrate wins and to identify areas where we can improve. Take time to hold monthly grade meetings. Identify the topics you want to discuss in advance, send them to your team and give them the opportunity to get ready to engage in meaningful conversations.
3. Celebrate victories, big and small: Building a great culture isn't just about avoiding the negative—it's about celebrating the positive. Recognition of achievements — whether it's hitting a big milestone or overcoming a difficult challenge — boosts morale and strengthens the bond between team members. Small gestures of recognition can go a long way in creating a positive and motivated team.