How to Perk Up Your Business without Boiling Over

In July 2008, Starbucks^® announced its plans to close 600 underperforming U.S. stores and cut about 12,000 jobs by 2009, according to businessweek.com. If you're a small business owner, you may think you can't relate to this problem. But there are lessons to be learned for all businesses from Starbucks' loss of steam.

Don't expand too quickly. Starbucks went from a unique neighborhood spot to "one on every corner," which made its own stores compete with each other. Originally known for the simplicity of excellent coffee, great customer service and a relaxing environment, some stores within blocks of each other started focusing on quantity instead of quality – meaning less time to interact with customers and make their experience memorable.

Avoid launching too many new products at once. Another move that hurt the brand was to offer an increasingly complicated array of drinks.

Employees hired for a love of coffee had to spend more time figuring out drink orders rather than getting to know the customers.

Don't lose sight of what makes your business special. While fast growth can seem exciting for a business, it can lose the very customers who helped make a business succeed. Controlling growth and keeping your product line tied to your roots can help ensure your brand still appeals to loyal customers – and gain new ones who appreciate customer-focused attention to detail.

Focusing on customers' needs is one of the best ways to improve a business. Surveys, focus groups and employee feedback about customer experiences can help you know if you are headed in the right direction with your business.

Sources: Businessweek.com, nytimes.com, drinks-business-review.com