Write Down Your Values Before You Hire Your Fifth Person

When a business has one or two people, its values live mostly in the founder's head. Everyone knows how things are done because they work side by side. But as the team grows, that shared understanding fades. New people bring their own assumptions. Decisions are made by people who never heard the founder's reasons. Without written values, culture forms by accident.

The best time to write down your values is before that happens, often around the time you hire your fourth or fifth person.

Vision that guides people

Proverbs says: "Where there is no vision, the people perish: but he that keepeth the law, happy is he." (Proverbs 29:18, KJV). The word translated vision refers to revelation or prophetic guidance. Without clear direction, people cast off restraint and lose their way. With it, they flourish.

Company values are not Scripture, of course. But they serve a similar practical purpose within an organization: they give people shared guidance for how to work and decide, even when the leader is not in the room.

Why write values down?

Written values help a growing business:

• Hire well, by evaluating candidates for fit.
• Onboard new people, by explaining how things are done.
• Make decisions, by giving a filter when the answer is not obvious.
• Give feedback, by connecting behavior to shared standards.
• Preserve culture, as the founder becomes less involved in daily work.

A simple values workshop

You can do this exercise alone or, better, with your current team. Set aside two to three hours.

Step 1: Tell stories

Ask each person to share a story of a time the business was at its best. A customer was served well. A problem was solved creatively. Someone did the right thing when it was hard. Write down each story briefly.

Then share stories of times the business fell short. What went wrong?

Step 2: Find the behaviors

For each story, ask: what did people do that made this good, or bad? Write down specific behaviors, such as "told the customer the truth about the delay" or "stayed to help a coworker finish."

Step 3: Group into themes

Look for patterns among the behaviors. Group similar ones together. You may see themes like honesty, care for customers, ownership, teamwork or excellence.

Step 4: Choose three to five values

Pick the three to five themes that matter most and best describe who you are, or who you want to be. Fewer values are easier to remember and live out.

Step 5: Define each value as behaviors

Values become useful when they are concrete. For each one, write a short name and two or three sentences describing what it looks like in practice. For example:

• Tell the truth. We share bad news early. We do not exaggerate in marketing. We admit our mistakes.
• Serve like neighbors. We treat customers the way we would want to be treated. We follow up after the sale. We make it easy to reach us.
• Own the work. We finish what we start. We ask for help when we are stuck. We fix problems instead of blaming.

Step 6: Test them

Run your values against a few hard decisions from the past or hypothetical situations. Do they give helpful guidance? If not, refine them.

Put your values to work

Values only matter if they shape what you do. Use them:

• In hiring: ask interview questions that reveal whether candidates share these values. See hiring for character and competence.
• In onboarding: explain each value and share stories that illustrate it.
• In feedback: connect praise and correction to specific values.
• In decisions: ask which option best fits your values.
• In recognition: celebrate people who live the values well.

Revisit them over time

Review your values once a year. As the business grows, you may need to clarify, combine or add values. Keep them alive by talking about them often. For the bigger picture of protecting your purpose as you grow, see guarding against mission drift.

Frequently asked questions

How many company values should a small business have?

Three to five is usually best. Fewer values are easier to remember, explain and actually practice.

Should our company values mention our faith?

That is your choice. Some faith-driven businesses name faith explicitly; others express it through values like honesty, service and generosity. Either way, make sure values describe behaviors everyone can understand and practice, and apply them fairly to all employees.

What if a team member does not live by our values?

Address it through honest feedback connected to specific behaviors. If the pattern continues, use your normal performance process. Values lose their meaning if they are not upheld.