3 Lessons Small Business Owners Can Learn From Netflix

There's a lot your business can learn from this tech giant.

Netflix is one of the largest and most popular companies on the planet, so it's easy to forget it was once a pretty small operation. But over a few decades, its founders grew their business and adapted to a rapidly changing market until their streaming service became a staple in nearly every home.

Even if you aren't trying to provide top-tier entertainment, you can probably still learn a few things about how to grow your own company by studying how Netflix built its business. Here are three key things it got right.

1. It wasn't afraid to try something new

Netflix has always been quick to embrace new technologies. It was one of the first to recognize the potential in DVDs when they appeared in the late 1990s, and it introduced its streaming service in 2007, long before many of its other competitors appeared on the scene.

Not every small business needs the latest technology to operate successfully, but it's important not to get too stuck in your ways. If you avoid new technologies, services, or strategies in your business, you could find yourself stagnating.

Build some time to review your company's performance and try to identify new opportunities for growth. If they don't work out, you can always go back to the drawing board. But if they turn out to be successful, they could give your business a competitive advantage.

2. It kept its pricing really simple and transparent

One of the reasons Netflix became so much more popular than traditional movie rentals was because it did away with due dates, late fees, and per-rental fees. All you needed to do was pay a monthly subscription fee. That was a lot easier for people to budget for and then they didn't have to worry about returning DVDs by a certain time.

A subscription model may not suit your business, but you can still strive to make things simple and transparent for your customers. Don't tack on extra fees at checkout and make sure customers understand what they are and aren't getting.

If you do some sort of custom work -- like building custom furniture, for example -- you may have to quote each job individually, depending on the work involved. Try to be prompt in providing these estimates and explain how you arrived at your number so customers aren't left guessing.

3. It focuses on providing a good user experience

Obviously, a big key to Netflix's success is having a wide variety of content that appeals to a diverse audience. But too many options without any sort of direction can be confusing and overwhelming. Netflix helps users navigate this by personalizing its user interface and updating its recommendations based on previously watched content to help identify new movies and shows of interest.

You may not be able to get that personalized, depending on the type of business you run. If you run an online store where you sell a range of pre-made products, you may not have that many options for customization.

But you can still strive to make the user feel as valued as possible instead of like they're just a number. Great customer service can help generate repeat customers and word-of-mouth advertising, so the extra time you spend here could pay dividends in the long run.

Every business is different and the way you apply the above tips will depend on the product or service you're trying to sell. But keep them in mind as you scale your business over time. They might seem obvious, but it can be easy to lose sight of them amidst everything else you have to do to keep your business afloat.