Hey Reader,
Forget free snacks and ping pong tables. Netflix built a culture around performance, not perks. And there’s a reason it works. Here's what small business owners should steal from their playbook — starting today.
In the 1990s, Netflix was just a DVD-by-post startup.
Today, it's a $200B+ media titan streaming to 230+ million people globally. But their biggest innovation isn’t their tech. It’s their team.
Because while other companies obsess over perks and policies, Netflix built a culture that runs like a championship team — not a family, not a startup, and definitely not a democracy.
When Netflix went from posting DVDs to producing Emmy-winning shows, it didn’t just disrupt the entertainment industry.
It rewrote the rulebook for how high-performance companies are built.
No endless meetings.
No bloated middle management.
No dead weight.
Just a culture engineered for excellence.
And if you run a small business, here's what matters most:
They didn’t wait to get big to do it.
So the real question is this:
👉 If Netflix can do it with 10,000 people, why can’t you with 5 or less?
THE CORE LESSON:
Netflix doesn’t hire for potential. They hire for performance.
And then they build a culture designed to let high performers thrive — not get bogged down by bureaucracy, low expectations, or weak links.
Their philosophy is simple:
Great colleagues + radical candour + clear context = compounding success.
They call it the Dream Team.
So while you’re still tiptoeing around that underperforming team member or drowning in approval bottlenecks, Netflix has quietly built one of the most effective cultures on earth.
The kicker? Their secrets aren’t actually secret.
They’re hiding in plain sight.
On their culture page. In their job specs.
And right here in this email.
THE BIG IDEA:
Most small businesses hire like they’re building a family.
Netflix hires like they’re building an elite sports team.
It’s a subtle but massive difference.
“We model ourselves on a pro sports team, not a family.” — Netflix Culture MemoNetflix Culture Memo - …
Why? Because families are loyal no matter what.
But performance teams? They push each other to be better, and they win because of the pressure.
That single philosophy transforms everything:
- How you hire
- How you lead
- And who you keep
WHAT SMALL BUSINESS OWNERS NEED TO STEAL — TODAY
Let’s break it down.
1. Hire for Impact, Not Potential.
Netflix doesn’t hire “nice-to-haves.”
They hire stunning colleagues — high performers who not only excel at their craft, but elevate everyone around them.
In fact, they use what’s called the Keeper Test:
“If this person wanted to leave, would I fight to keep them?”
If not? Let them go. Brutal? Maybe. But it’s also why their talent density stays high.
📊 According to research by McKinsey, high performers are 400% more productive than average ones. In highly complex roles? That jumps to 800%.
Are you building your business on the back of brilliance… or just filling roles?
Your takeaway: Great businesses aren’t built on potential.
They’re built on performance, trust, and real outcomes.
2. Lead with Context, Not Control.
At Netflix, managers don’t micromanage.
They inform, inspire, and then get out of the way.
This is what they call “context, not control.”
It means:
- No endless sign-off chains
- No disempowered teams
- No pretending to be the smartest person in the room
And it works — because their people have ownership.
“We share information openly, broadly and deliberately. Our model is to increase employee freedom as we grow, rather than limit it.” — Netflix Culture Deck
📚 Harvard Business Review confirms this works: Companies that decentralise decision-making see up to 25% higher productivity, with faster innovation cycles and greater employee retention.
Your takeaway: Autonomy only works when people are equipped — not just expected — to deliver.
3. Culture Is Built on Honesty, Not Comfort.
Netflix is famous for something most businesses avoid:
Radical, uncomfortable honesty.
They normalise giving feedback — upwards, downwards, and sideways. And they do it not to be edgy, but because they know it’s the fastest route to growth.
“Extraordinary candour helps us improve faster.” — Netflix MemoNetflix Culture Memo - …
According to research published in the Academy of Management, teams with a strong feedback culture are 39% more likely to hit their targets and 44% more likely to retain top talent.
Contrast that with most small businesses, where avoiding conflict is practically a KPI.
Your takeaway: If you’re not giving feedback, you’re fostering resentment. And if you’re not getting it, you’re stuck.
WHY THIS MATTERS FOR SMALL BUSINESS OWNERS
Let’s get real.
You don’t have 10 layers of management.
You don’t have endless cash reserves.
And you definitely don’t have time to babysit.
You need a culture that runs lean, fast and strong.
Which means you need:
- A team who can think for themselves
- A standard that rewards results, not longevity
- And a hiring filter that values contribution over comfort
The truth?
Mediocrity is more expensive than excellence.
Keeping the wrong person will cost you more — in money, morale, and momentum — than it ever will to start again.
THE STATS THAT SHOULD WAKE YOU UP
📌 A study by Gallup found that only 10% of employees are naturally wired to manage others — yet most businesses promote by tenure, not talent.
📌 Deloitte reports that 94% of executives and 88% of employees believe a strong workplace culture is key to business success — yet most small businesses don’t have one written down, let alone enforced.
📌 Bain & Co found that organisations with high “talent density” are 2.2x more likely to be high-performing and agile.
So, if you’ve ever said:
“We’re too small to think like Netflix.”
The truth is:
You’re too small not to.
3 ACTION STEPS TO IMPLEMENT THIS WEEK:
🛠 1. Run the Keeper Test.
Ask yourself: If each person on your team said they were leaving, would you fight to keep them? If not, plan your next steps — kindly but clearly.
📋 2. Write a One-Page Culture Memo.
Define what you stand for. What does a “great colleague” mean in your world? Make it simple. Make it visible. Make it non-negotiable.
📣 3. Introduce Radical Honesty.
This week, give (and ask for) one piece of constructive feedback from your team. Build the muscle. Make it normal. Practice until it’s second nature.
FINAL THOUGHT:
The most successful businesses aren’t built by chance.
They’re built by choice.
So choose to build a team that lifts you out of the weeds, not one that keeps you buried in them.
Let this be the week you stop settling.
We’ve got this …
