Business Entrepreneurship

Small Giants: Companies That Choose to Be Great Instead of Big (Summary)

by Bo Burlingham

In 2000, Gary Erickson, the founder of Clif Bar, was days away from selling his company for $120 million. During a final negotiation meeting, he was hit by a wave of nausea. He realized that selling would destroy the very culture he had fought to build—the reason he loved his job. He walked away from the deal, buying out his business partner for millions to save the company's soul, proving that for some leaders, passion is worth more than any price.

Greatness is Measured in 'Mojo', Not Market Cap

The best companies possess an intangible, electric quality Burlingham calls 'mojo'—a powerful energy that comes from having a purpose beyond profit. This mojo attracts passionate employees, creates fanatical customers, and radiates goodwill throughout their community.

Zingerman's Delicatessen in Ann Arbor, Michigan, is so beloved that customers make pilgrimages to visit. This 'mojo' isn't just about food; it's about their commitment to open-book management, employee education, and their deep connection to the local community, which makes both staff and customers feel like part of something special.

Intimacy is a Competitive Advantage

By deliberately staying small, these companies foster deep, personal relationships with their employees, customers, and suppliers. This intimacy builds a level of trust and loyalty that massive corporations simply cannot replicate.

Righteous Babe Records, founded by musician Ani DiFranco, chose to stay independent in her hometown of Buffalo, NY, instead of signing with a major label. This allowed her to maintain total creative control and build a direct, authentic relationship with her fans, who felt like part of a close-knit movement rather than just consumers.

Companies Are Citizens of a Place

Small Giants are deeply rooted in their local communities. They don't view their location as an arbitrary headquarters to be moved for a tax break; they see it as their home and actively work to make it a better place.

Anchor Brewing Company was inseparable from the city of San Francisco. Its owner, Fritz Maytag, was fiercely committed to keeping the brewery in the city, viewing it as a civic institution and part of the local fabric, even when it would have been cheaper to move.

Leaders Choose Soul Over Money

The leaders of these companies have a deep, emotional connection to their business. When faced with a choice between a massive payday and compromising their company's values and culture, they consistently choose to protect its soul.

Danny Meyer, founder of Union Square Hospitality Group, has intentionally slowed the expansion of his iconic restaurants. He believes that rapid, cookie-cutter growth would dilute the unique culture and high standards of hospitality that make each restaurant a beloved institution, choosing to preserve excellence over maximizing profit.

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