7 Ways Startups Are Changing the Way Businesses Work

In this dynamic and technology-oriented world, new business ideas are generated every day. While it is easier to come up with an idea, the difficult part is executing it in such a way that it would be profitable and successful.

Instead of following the same old pattern of graduating and getting hired by a multi-million dollar company, millennials have been working toward building these ideas themselves. They have a strong influence on the office culture as they are starting their own companies and expect their workplaces to be equally digitally native.

Startups serve as a center for innovative ideas. They are a great way of bringing diversity into society and generating employment opportunities. They allow new concepts to be explored and bring about changes which may transform our way of life.

Small companies have changed the way businesses operate in general. They have brought about a revolution in the corporate world, which has altered the whole dynamic. Who would have imagined ten years ago we would be carrying virtual wallets and paying with cryptocurrencies?

Here are a few ways startups have completely redefined the way businesses work:

1. Use of Social Media Platforms

Social media has opened up a new dimension for businesses today. It has brought businesses closer to their potential customers. With the help of these platforms, startups have tapped into previously unexplored market segments.

Operating from Facebook, Instagram or Twitter helps businesses establish a larger consumer base and reach their target audience with the right message. This mode of reaching the masses delivers better results. Startups have realized that rather than spending billions on forming a consumer base, such small acts can have a larger impact.

Ways Startups Are Changing the Way Businesses Work

They have also ushered in a new way of analyzing data from social media, using artificial intelligence (Ai) to help decipher the trends in data collection and implement change in strategies.

Creating Trends

With the help of these platforms, it is easier to create and set new trends with hashtags, which could make the message go viral and reach a wider audience. This sets the network effect in motion.

Setting Up Startups

Social media acts as a catalyst for change. The advent of these platforms has made it easier to set up startups altogether. People can run large businesses from the comfort of their homes.

2. Office Culture

A typical office culture conjures up the concept of working a 9-5 job, rows of cubicles, uncomfortable chairs, monotonous work and a grumpy boss who should be punched in the face. Startups have redefined the office culture altogether. 

Ways Startups Are Changing the Way Businesses Work

March to Your Own Band

A lot of these startups are set up by millennials, who have formed a culture of their own. Their satisfaction is driven by the fact that they are making a difference. It is this need to bring meaning and purpose to everyday life which sets them apart from other businesses. They feel the need to give back to society and build a more diverse environment, and this is an example of the kind of startup culture that corporations must incite if they are to retain millennial talent.

Investment in Talent

Unlike normal businesses, startups do not worry about credentials and backgrounds. As long as an individual has the talent and potential to make a difference, they will invest in them. Employees are encouraged to work on projects they find interesting so that they will be doing what they love. This is how these startups build trust in their employees and give them the freedom they need. 

3. Ideas Can Come from Anywhere

Large e-commerce giants such as Facebook, Amazon, and Google were once nothing more than startups. For decades, these companies have worked on creating innovation-friendly environments. They have realized the need for diversity among their employees. They don’t care where the ideas come from as long as they are unique, encourage innovation and make a difference to their customers’ lives.

These companies have restrained from putting a barrier on their employees. They encourage innovative thinking. For example, Amazon’s Lab126, and Google [X] have been formed to encourage this method of work. 

Google works on the idea that 75% of its employees’ time should be dedicated to working. The rest of the time can be used for anything. If their employees want to work on projects of their own, Google will provide the necessary funding. It is this approach which has given birth to new startups like Uber, which has turned into a successful company of its own.

Similarly, Facebook came up with drone technology with its Connectivity Lab and Amazon launched the FireTV in its Lab126. Modern corporations like Facebook and Google have adopted such practices, but they remain the exception that proves the rule. Many corporations are stuck in the old ways of working, but in order to innovate and remain competitive, they must learn from elements of startup culture.

4. Encourage People to Work When and Where They Are Most Productive

Large corporations follow a certain code of conduct which involves how their employees dress, the way they carry themselves, and their work patterns. Startups, on the other hand, follow a different code. They believe in providing their employees with the freedom they need as long as they get the work done.

Their main focus is on getting results. Not much attention is paid to what the employees are wearing, what they are doing with their time or how they are working.

For instance, Facebook allows its employees to come and go as they please and wear whatever they want. No specific work hours are provided. Employees are only given a laptop to work on and a sofa to sit. This type of approach promotes freedom of thinking, which results in more innovative responses.

5. More Focus on Skill Set

When people choose to work at a startup, they take a risk with their careers because they do not know whether the startup will prove to be a success or failure. Even if it is successful, it is usually absorbed by a larger company. This results in uncertainty when it comes to careers.

These startups have changed the way people work in both small and large organizations. They have made employees more diverse and urged these organizations to overlook their area of expertise and focus on their skill sets. For instance, Google’s workforce comprises of only 37% of engineers.

The Hacker Way

Operations in startups largely depend on decision-making skills. Their idea of getting work done differs from large businesses. For instance, many startups follow the 2-pizza rule while forming teams: put together a team which could be fed with two pizzas or else the team is too big. They also follow a flat hierarchy where managers make up a small portion of the workforce and directors even smaller.

6. Focus on a Small Idea Which Makes Life Easier

The whole idea of a startup revolves around making the customers’ lives easier so that they do not have to spend more than a couple of hours doing a task. With the help of innovative thinking, many businesses have come up with groundbreaking ideas which have become a large part of their customers’ lives.

For instance, up until now, it was unknown that a gap existed between communication and transportation. Owing to this gap, Uber emerged, making the idea of hailing a cab much easier. 

Let’s take another example. At the time, due to a stressful day at work, it can be impossible for an individual to carry out small daily errands. With startups like Fancy Handy, people can now hire on-demand assistants to run errands for them. 

7. First Settler Over First Mover Advantage

First movers are businesses that generated a completely unique idea from scratch. If they are the first entrants in the market, they gain a competitive advantage. However, most startups do not follow this concept. They have widely benefited from the first settler advantage pertaining to those who are first to reach liquidity and gain market share. 


It does not matter if the startup idea is not original, unlike traditional businesses. As long as the idea captures the masses, it can become successful.


Startups have completely changed the dynamics of a business. They have made it easier to produce unique and interactive ideas. The office environment has also changed a great deal. Where workers had to follow a certain code of conduct, they can now do whatever they please as long as they deliver results. 

It is not necessary for startups to come up with a completely unique idea. They can even experiment with already existing concepts, given that they find ways to grab the attention of their customers and figure out exactly what they want. The more freedom given to employees to think, the more they are likely to practice innovative thinking. 

They realize the fact that when an individual is forced to do something, they might not be productive, but if they are given their space, new ideas might be generated and new ways of carrying out old tasks might be generated. They will be satisfied with their work. When these employees will not feel caged, they are bound to yield positive results.

It is safe to say that soon, all businesses will be adapting to the startup life. A rising tide of startups has been slowly changing the spaces we spend most of our time in. Soon, large corporations will also be supporting and valuing startups.

About Carson Derrow

My name is Carson Derrow I'm an entrepreneur, professional blogger, and marketer from Arkansas. I've been writing for startups and small businesses since 2012. I share the latest business news, tools, resources, and marketing tips to help startups and small businesses to grow their business.

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