America has always been the land of small businesses, with them forming the foundation of America’s economy, and the idea that anyone can build a successful small business is a core tenet of the country’s philosophy.
But, what makes a small business truly great? To answer that, we’ll have to look at some examples. Here are some of the most successful and stable small businesses in America.
1. Basecamp
With more than $25 million in revenue, Basecamp has been growing quickly — but not too quickly. In fact, Basecamp only maintains 52 employees, and CEO Jason Fried has been turning down investment offers. Basecamp is the epitome of a strongly built small business; it has been growing slowly and sustainably instead of taking on investors at extreme valuations. That has allowed it to maintain its small company culture, including employee benefits such as paid family vacations, subsidies for hobbies, and 30 day sabbaticals every three years.
2. Motawi Tileworks
Located in Ann Arbor Michigan, Nawal Motawi and her 33 employees are able to capture revenue of $3 million through art tiles and art installations. Though many artistically-inclined companies always stay as small businesses, Motawi had a vision for her company that went beyond being a “small art tile shop,” and into the areas of larger commerce. Using lean manufacturing techniques, Motawi Tileworks was able to reduce its overhead — and the transparent nature of the company ensures that employees are always working hard for the company.
3. FreshBooks
How do you compete qith Quickbooks? FreshBooks is an online accounting service, worth more than $50 million in revenue and with a total of 248 employees. Faced with potential obsolescence, FreshBooks reinvented itself as an easy-to-use accounting solution for small business owners and self-employed professionals. By increasing its advertising spending and offering free trials, FreshBooks was able to draw in an audience that was looking for an all-in-one invoicing and accounting product.
4. Dutch Bros.
A drive-through coffee chain with a staggering $77 million in revenue (despite having only 170 employees), Dutch Bros. has been expanding into franchises — and showing off its company values in the process. Franchisees must work at least three years for the company before applying for the franchise, but the franchise will help pay for the $30,000 franchise fee, in addition to assisting in other areas. Many of the franichses have no professional education; Dutch Bros. is only concerned about their work ethic and their attitude.
5. Dansko
How do you make $120 million in revenue with 150 employees? In the import and export business, apparently. Mandy Cabot started selling shoes out of the trunk of her car, and since then has been able to grow by putting its employees first, offering transparent management, and never sacrificing on quality.
6. StickerGiant
StickerGiant’s 39 employees work together in a “customer-acquisition machine.” With their operation streamlined, StickerGiant is now attempting to work towards acquiring new customers; each operator is intended to bring in 400 new customers a week, up from the 300 per week that they made the prior year. StickerGiant’s company culture is transparent, bringing employees into meetings to find out more about customer feedback and financials — and what’s working and what isn’t. By motivating and involving emloyees, StickerGiant has been able to aggressively grow into a company with a revenue of $10.2 million.
7. NightLight Pediatric
Where do you go if your child has a fever — and it’s the middle of the night? Many are forced to go to expensive emergency rooms, but not if they’re in the service area of NightLight Pediatric. NightLight Pediatric, founded by Dr. Anastasia Gentles, is an urgent-care facility focused on helping children who are ill. This fulfills a need that was otherwise being unmet in the community.
8. Rhino Foods
Rhino Foods is a small business with a heart. More than just an ice cream company, Rhino Foods has grown based on their dedication to their 140 employees. With revenue of over $50 million, Rhino Foods has offered performance-based bonuses, arranged for loans for employees, and offers English classes to its 30% refugee staff. Though ice cream is seasonal, the company is able to provide employment to its employees year-round by working with other seasonal businesses, such as local chocolate companies.
9. Galileo Learning
Built on a foundation of learning-as-you-do, Galileo Learning provides themed summer camps that help children learn and grow. The 80 employees of Galileo Learning helped achieve a revenue of $21 million, while still offering camps at an affordable $350 to $550 a week.
10. HED Cycling
20% of the 48 employees at HED cycling have been with the business for over a decade, with 10% being employees who left the business and came back. HED Cycling offers professional bike wheels, some up to $6,000 a pair, in addition to high-end frames. HED Cycling has been able to achieve revenue of $10 million a year, even despite the sudden death of the major business partner — Steven Hed — in 2014.
What do these small companies have in common? From revenue of $4 million to $120 million, these businesses remain transparent and compassionate with their employees. With all employees working together to make these businesses a success, the companies have been able to better utilize their human capital.
They have also been able to adapt to changing environments and have been able to commit to hard decisions. These are the characteristics that most embody a strong and agile small business.
Regards,
Ethan Warrick
Editor
Wealth Authority
