The One Shift That Could 7X Your Profit (Sabrina Starling on Small Business)

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What if a single shift in your leadership could unlock a 756% increase in profitability?

A Harvard Business School study by John Kotter and James Heskett found that companies with strong, adaptive cultures increased net income by 756% over 11 years, compared with just 1% growth in companies without such cultures (“Corporate Culture and Performance,” 1992). The difference-maker? A culture that values leadership, accountability and the development of people.

Focusing on “soft skills” might feel like a luxury in small businesses, where every hire, process and dollar counts. What if these soft skills are the foundation for accountability, innovation and sustainable growth?

At Tap the Potential, we help business owners build coaching cultures that aren’t just feel-good environments but engines of high performance. It starts with shifting how you engage with your team. Rather than top-down directives, a coaching culture invites collaboration, curiosity and problem-solving.

A coaching culture drives results. A-player team members thrive when given autonomy and challenged to contribute at a higher level. When you shift from telling to asking by posing strategic, open-ended questions — such as: “What do you think is the best next step?” — you unlock hidden potential on your team.

One of our clients recently shared that the shift was immediate when they adopted a coaching mindset. Their team started offering solutions before problems fully surfaced. Accountability went up. Customer experience improved. Turnover went down. And yes, profits increased.

Why? Because people support what they help create. When employees are coached rather than directed, they feel ownership. When they own their outcomes, they engage differently with your clients, each other and your vision.

This ripple effect can be profound. A coaching culture increases retention because team members feel valued and heard. It boosts innovation because diverse perspectives surface regularly. It strengthens your leadership pipeline because team members are constantly learning and growing.

Too often, small businesses push leadership development to the back burner. You are busy putting out fires. When your team is empowered to solve problems, fewer fires happen. For example, when a customer makes a complaint, rather than trying to determine who is at fault, you ask: What opportunities exist to create a better outcome for this customer? And what system could be strengthened to prevent an issue like this in the future? It feels safe for your team members to engage with these questions. They don’t feel attacked or blamed. They are more likely to offer viable solutions and take responsibility for implementing them.

I recommend the book “Change Your Questions, Change Your Life” by Marilee Adams. This is a great book to read with your team and discuss shifting to the “learner path” from the “judger path.” The outcomes of the learner path are win-win solutions, a more positive outlook and greater team camaraderie. The judger path results in win-lose situations, low energy, defensiveness and decreasing morale.

This one tool and a broader shift in focus can make a significant positive impact on your culture.

Sabrina Starling, Ph.D., PCC, BCC, is the bestselling author of “How to Hire the Best” and “The 4 Week Vacation.” Founder of tapthepotential.com and host of the “Profit by Design” podcast, she and her team coach entrepreneurs to take their lives back from their businesses. They are on a mission to send 10,000 entrepreneurs on a four-week vacation in 10 years.