Some of the world’s most successful companies, like Amazon, Costco, and Dollar Tree, grew into industry leaders by adopting a few reliable growth strategies. And even small startups can emulate these highly effective strategies to develop their own companies. Here are ten ways to get started.
1. Adopt a Customer-Centric Approach
Amazon, Costco, and Dollar Tree all maintain a relentless focus on their customers. They spend a lot of time understanding their needs and delivering value-driven products and services to meet them. They work hard to keep customer satisfaction high.
One way to do this is to implement a Net Promoter Score or NPS. This customer satisfaction metric is established by answering a single survey question. Using a 1-10 ranker, ask your customers how likely they are to recommend your company, product, or service to a friend or colleague.
For example, customers who give you a 9-10 score are happy and likely to remain loyal. Scores of 7-8 demonstrate satisfaction but a lower probability of loyalty. Scores of 6 or lower point to issues that must be addressed immediately to protect future business.
2. Provide Visionary Leadership
Small businesses that want vision and passion to help them grow must invest in management and leadership training. After all, Amazon, Costco, and Dollar Tree were launched by strong leaders who provided the vision and passion needed to reach the top of their markets.
When small businesses provide leadership training to all employees, regardless of their title, they can create a culture of loyalty, initiative, and accountability. Instead of relying on the founder’s charisma, company-wide training fosters deep passion that drives success.
3. Continue to Innovate
Amazon, Costco, and Dollar Tree have robust innovation initiatives. They’ve created a culture that constantly bumps up against boundaries and embraces new technologies.
Companies of all sizes can embrace a culture of innovation without creating an expensive R&D division. Look around, and you’ll spot relevant innovation in almost any industry sector. Monitor other industries to see how they go to market, create revenue, solve problems, and serve their clients. By learning how other business owners identify new strategies, you can adapt their ideas to your industry to push you ahead of competitors.
4. Focus on Operational Efficiency
Operational efficiency is critical for firms of any size. Efficiency enables market leaders to offer high-quality products and services at lower prices while maintaining margins.
Small businesses need to take a big-business approach to efficiencies. Start by documenting your processes, identifying bottlenecks or unnecessary redundancies, and seeking to eliminate as many unneeded steps as possible.
I often recommend that business owners look for ways to say one percent in time or money across a range of tasks, because even a one percent increase in efficiency can be a game-changer.
5. Rethink Your Pricing Strategies
Pricing is a critical factor in business success, and Amazon, Costco, and Dollar Tree have all differentiated themselves by adopting unique pricing strategies that appeal to their customer base.
Small businesses need to adopt an open-minded approach to pricing. Think outside the box and explore tiered pricing, membership or subscription-based models, and suggestive selling based on previous purchases.
6. Revisit Supply Chain Management
The bigger the company, the more complicated the supply chain becomes. That’s why effective inventory, distribution, and logistics are a primary focus for Amazon, Costco, and Dollar Tree. All three companies have implemented best practices to optimize their supply chain operations.
Small businesses can benefit by investing in supply chain management technologies and processes. Consider how operations, procurement, inventory, and distribution work with demand planning. Incremental improvements can reap exponential rewards.
7. Make Data-Driven Decisions
Sophisticated data gathering and skilled analysts help Amazon, Costco, and Dollar Tree make informed decisions and improve operations.
Today, even one-person operations can afford cloud-based analytics tools to provide insight into customer behavior, operational performance, and financial analytics. It’s wise to invest time in securing the most advanced programs available to position your firm for faster growth.
8. Foster Employee Engagement
Amazon was named the most desirable workplace in the U.S. by LinkedIn in 2023. Costco motivates its workforce and fosters a sense of loyalty and commitment by prioritizing internal promotions and offering employees career advancement opportunities. Dollar Tree offers similar programs. All three companies have a strong employee engagement culture, fostering loyalty, productivity, and innovation.
Small businesses are well-positioned to create a positive workplace culture that encourages collaboration, innovation, and professional development. Focusing on employee engagement and satisfaction is one of the best ways to increase loyalty, improve performance, and reduce turnover.
9. Commit to Continuous Improvement
Even at the top, no one is resting on their laurels. Amazon, Costco, and Dollar Tree continuously seek ways to enhance their operations and customer experiences.
Small businesses must also adopt an “improve or perish” mentality. The world is changing faster than ever, so embracing a culture of continuous progress is mandatory. Regularly evaluate processes, products, and services to identify areas for optimization.
10. Adapt to Change
The business landscape constantly evolves, and adapting is critical for long-term success. Amazon, Costco, and Dollar Tree are committed to accommodating change and leading it by embracing new technologies, markets, business models, and opportunities.
Small business owners also need to embrace this kind of agility. Continually evaluating, adapting, and pivoting are vital parts of success in 2023, no matter how large or small your company is.
We’re Here to Help
7 Stage Advisors has helped thousands of small businesses grow and expand, but we’re not right for everyone. If you want to discuss your company’s goals and needs, contact us to see if we can help you take your organization to the next level.