How to Make Your Small Business into a Big Business

How did a 1,300-square-foot deli in a college town become an internationally known brand? It’s not just the pastrami and corned beef that draw people to Zingerman's Deli in Ann Arbor, Michigan.

Attention to customer service is key, as is the ability of the store to use word-of-mouth marketing to spread the gospel of Zingerman’s far and wide. While Zingerman’s exists in just one location, the annual turnover of international students, along with visiting fellows and faculty in the university town, means satisfied customers become brand advocates the world over. The store reaches patrons in far-flung corners of the country, selling its deli, coffee, bakery, chocolate, and other specialty food items via mail-order catalog and through retail outlets such as Whole Foods. All of this adds up to $35 million in annual revenue.

Zingerman’s owner Ari Weinzweig, a well-known and well-loved character in Ann Arbor, shares the secrets to his success in his most recent book, A Lapsed Anarchist’s Approach to Building a Great Business.

In chapters such as “12 Natural Laws of Building a Great Business” and “An Eight-Step Recipe for Writing a Vision of Greatness,” Weinzweig offers wisdom that's as happily digested as one of Zingerman's Reuben sandwiches.

Here are some of the principles that make his book a worthwhile read and a good teacher for those who can’t get to Ann Arbor:

• Always be collecting dots: The “dots” are bits of information about customers, from birthdays to vacations and books they are reading. Weinzweig says communicating the dots to patrons, as well as being a catalyst for meetings and introductions among patrons, is a great way to create the right atmosphere for return customers. For instance, if you see a first-time customer looking over housing listings, introduce him or her to the regular in the corner booth who is a real estate agent. “The more we hook them up,” writes Weinzweig, “the more connected they feel to the world, and to us.”
• Provide a great place for people to work: The more your employees like their jobs, the more likely they will be to work to implement improvements. “We are always looking for ways to make Zingerman's a more positive place,” writes Weinzweig. “We do this by sharing our vision, by involving people in running the business, by creating and promoting processes for organizational change, and by offering great training."
• Keep your website up to date and accurate: Everyone at Zingerman's knows that Wednesday is "Webnesday," the day to check the Web. All marketing reps spend five to 10 minutes checking out their own websites and one of Zingerman's Community of Business websites. They are assessing effectiveness, spotting errors or anything that is out of date, and looking for more opportunities to leverage the Web traffic.
• Communicate your “vision statement”: Decide what your vision is for your company, and make sure you communicate that to employees and clients. Because the owner of Zingerman's is committed to staying in the Ann Arbor area, customers know the store won’t be opening in Chicago or California. That makes it unique, and therefore more desirable. If the vision for your company is to put together an initial public offering within the next five years, it's pretty clear that remaining a small, family-oriented business is not where you are headed. That creates other opportunities for your business. Communicate that vision to clients and employees, who can then know what to expect as your business evolves.
• Trust your gut: Don't let the opposition fool you. “In my experience,” writes Weinzweig, “the better your ideas, the more likely it is that a lot of people will quickly tell you why what you're envisioning won't work.”