A couple of years ago, when J.J. Kilmer and her husband, Barrett, decided to open a coffee house in downtown Madison, Wis., they knew exactly what they wanted to avoid. “The world doesn’t need another nondescript place that looks the same as every other coffee house,” she says. “We wanted to break away from the status quo. We felt that it was important to create a fresh and appealing concept.”

The couple immediately began brewing ideas for how to avoid a cookie-cutter coffee house. They plastered indie rock posters on the walls, they cultivated Wisconsin-based food products and they installed a large fireplace mantel in the shop. Once a week, they hold a student film night and show home movies with old 8 millimeter and 16 millimeter projectors. The end result? A shop, appropriately named Indie Coffee, that’s thoroughly grounded in success. “The business has grown beyond our expectations,” Kilmer says.

At a time when faceless corporate giants dominate the marketplace and music and the arts often seem scripted and predictable, it’s no accident that smaller independent firms have flourished. Today, many individuals are looking for fresher, edgier and more unpredictable fare. “There are a lot of people looking to thumb their noses at big corporations and find a more appealing product,” observes Michael Solomon, a principal at consulting firm Mind/Share, Inc. and author of Conquering Consumerspace: Marketing Strategies for a Branded World (American Management Association, 2003).

To be sure, examples of the indie spirit are everywhere. JetBlue has transformed the airline industry with leather seats, personal video systems and upbeat employees. The Boston Beer Company—the maker of Samuel Adams—has spawned a revolution in specially crafted beers. Boutique hotels have popped up, and independent coffee houses are making a comeback. All while independent music labels and film companies have ventured where few conglomerates would dare to go: embracing artists and projects that fall outside the so-called mainstream.

Although the concept of an “independent” is nothing new—every company started small and unknown—it’s clear that consumers and entrepreneurs are increasingly attracted to the idea. “When an independent thinker comes up with a new product or service, it can create a powerful ripple effect through the marketplace,” says Bill Brooks, CEO of Greensboro, N.C., consulting firm The Brooks Group. In fact, it’s not unusual for copycats to emerge and large companies to create separate labels and divisions in order to cash in.

Brewing Success

If it’s true that familiarity breeds contempt, then today’s marketplace serves as an ideal incubator for the indie spirit. While it’s true that the masses are drawn to the unfailing predictability of a McDonald’s or Starbucks, plenty of others search for the new, the fresh, the edgy and the innovative. Of course, there’s also a certain cachet and sense of cool associated with discovering a hip new film or great new beer.

Others are attracted to independents simply because they offer a better product or service—or at least something that’s closer to what they desire. “As companies grow larger, they typically become more bureaucratic and risk-averse. They worry more about protecting the business than engaging in any real innovation,” Brooks explains. “Eventually, an entrepreneur spots the opportunity and moves in.” Even if it’s only a niche in the marketplace, the possibilities—and demographics—can loom large.

When Jim Koch started The Boston Beer Company in 1984, his primary goal was simply to create a better beer. “I looked at what was available in the U.S. and knew that I could do a whole lot better,” he says. Using a family recipe, he brewed his first batch of Samuel Adams and then lugged it to local bars to make his mark. He promptly found doors slammed in his face—one bartender even pulled a gun on him. But Koch persisted and eventually found a few pubs willing to sell his beer.

Over the next few years, the popularity of Samuel Adams swelled. Despite rejection from distributors and virtually no advertising or marketing budget, restaurants and bars began seeking out Koch’s beer. Eventually, Boston Beer landed a distributor and, a few years later, supermarkets began stocking their shelves with Samuel Adams. Today, one out of every 200 bottles of beer sold in the U.S. comes from Boston Beer, and annual sales top $217 million.

“I always felt that if I could brew the best beer possible others would appreciate it,” Koch says. “Fortunately, I didn’t know up front that it’s nearly impossible to start a brewery from your kitchen.”

Turning a New Page

Passion and commitment are critical for those pursuing an independent business. Often, Solomon notes, these individuals have a vision that others simply don’t understand. And while the typical business lasts only eight years, a successful independent can produce an enduring legacy. “People often feel a direct sense of connection with independent businesses and the people who run them,” he says.

For Michael Powell, president of Powell’s Books in Portland, Ore., Solomon’s words ring true. The store dates back to 1970. “I never dreamed we would become the nation’s largest bookstore. All I wanted to do was offer a broad inventory and create an environment that customers would respect and enjoy.” Today, his 70,000-square-foot flagship bookstore in Portland carries more than 1 million volumes, and the seven other stores scattered across Portland—as well as online site Powells.com—stock more than 2 million copies.

From the beginning, Powell staked his business on delivering the broadest spectrum of books: new, used, discount and out of print. He also attracts workers with a passion for books and literature, and keeps turnover low with excellent pay and benefits.
National players like Barnes & Noble and Amazon aren’t a concern. “We know what our market is,” he says. “We have no intention of going national. Too often, expansion leads only to a dilution of the original idea.”

Of course, some indies eventually sell to larger corporations or become so large and unwieldy that they’re no longer independents. And many large corporations try to create the illusion of offering indie products through branding and marketing. Yet, as long as people exist, the indie spirit will remain alive and kicking.

"Innovation and creativity are good for the marketplace,” Solomon says. “Independent companies create choices. In the end, that’s what capitalism is all about.”

A Who’s Who of Indies

Ben & Jerry’s Homemade. The two ice cream mavens scooped the competition when they created a super-premium product and sold it from a single shop in Vermont in 1978. Dutch conglomerate Unilever bought the company and its 570 worldwide franchises in 2000.

The Boston Beer Company. Working from his kitchen, Jim Koch concocted Samuel Adams beer in 1984. Today the company sells 15 different types of beer, employs more than 370 workers and boasted sales of $217 million in 2004.

JetBlue Airways. Leather seats, DirecTV and cheery staff have helped the airline fly high. Its 70 aircraft and $1.2 billion in 2004 sales make it the nation’s 10th-largest carrier.

Miramax. Formed in 1979 by brothers Harvey and Bob Weinstein, the firm emerged as a major player with films like Sex, Lies and Videotape, My Left Foot and The Crying Game. In 1993, Walt Disney Studios Entertainment bought Miramax for $65 million—unleashing a wave of indie production and distribution companies. The Weinsteins recently cut ties with Disney.

Osborne Computers. In 1981, Adam Osborne created the first portable computer, weighing 24.5 pounds and offering a five-inch display for $1,795. After sparring with IBM and other industry giants, the company declared bankruptcy in 1983.

Powell’s Books. Founded in 1971 by Walter Powell, father of current president Michael, the Portland, Ore.–based bookseller boasts annual sales of more than $57 million. Its eight stores house more than 2 million books.

Ross Perot. The Texas-born billionaire ran for president as an independent in 1992 and garnered 19 percent of the popular vote (he ran under the Reform Party in 1996). That made him one of the most successful independents in American history.