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It's an axiom of business that great companies grow their revenues and profits year after year. Yet quietly, under the radar, a small number of companies have rejected the pressure of endless growth to focus on more satisfying business goals. Goals like being great at what they do . . . creating a great place to work . . . providing great customer service . . . making great contributions to their communities . . . and finding great ways to lead their lives.In Small Giants, veteran journalist Bo Burlingham takes us deep inside fourteen remarkable companies that have chosen to march to their own drummer. They include Anchor Brewing, the original microbrewer; CitiStorage Inc., the premier independent records-storage business; Clif Bar & Co., maker of organic energy bars and other nutrition foods; Righteous Babe Records, the record company founded by singer-songwriter Ani DiFranco; Union Square Hospitality Group, the company of restaurateur Danny Meyer; and Zingerman's Community of Businesses, including the world-famous Zingerman's Deli of Ann Arbor.Burlingham shows how the leaders of these small giants recognized the full range of choices they had about the type of company they could create. And he shows how we can all benefit by questioning the usual definitions of business success. In his new afterward, Burlingham reflects on the similarities and learning lessons from the small giants he covers in the book.Small Giants is a finalist for the Financial Times / Goldman Sachs Business Book of the Year Award
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Key takeaways:
- Value Disciplines:
1. Operations Excellence allows you to offer the best price by having the best operations.
2. Product Leadership allows you to provide the best product by constantly innovating.
3. Customer Intimacy allows you to give the best service and customer experience by knowing your customer and what they want.
- Marketing: don't try to sell your company. Just present it. Make something worth buying and trust the consumers will notice.
- Bo talked about one company that had birthday lunches. Everyone with a birthday in the current month got together for a lunch provided by the company.
- Good people resent it when other employees show up late.
- A company needs three things:
1. Steady gross margins that you protect
2. A healthy balance sheet, as shown current cash-to-debt and debt to equity ratios.
3. A sound business model governing how the company delivers value and earns a profit while doing it.
- Protect your Gross Financial Margin. Just because you have sales, doesn't mean you are making money.
- There is an interesting look at Umpqua Bank around 7:41:00 in the audiobook. The bank would be extremely cautious about who was allowed to open accounts the provided exceptional service. It came at a premium, but their clients would happily pay for it.
- “Profits are the by product of a well run business, not end goals by themselves.”
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