More and more people are quitting their jobs to become entrepreneurs. But most startups don’t survive beyond 5 years due to competition, disruptions caused by technology, and cash flow problems. According to research, only 50% of small businesses cross the five-year mark.
So, how do you create a successful business that will stand the test of time and get passed down to several generations? Here are great tips for building a business that lasts 100 years.
Adaptability is Key
Change is inevitable, and you must change as business trends change. Your product may be loved by consumers today, but what if it becomes obsolete five years down the line? No one thought we wouldn’t need typewriters fifty years ago.
If there is a new technology, trend, or technique, improve your offerings to match new demand. Use technology to adapt to consumer behavior and keep up with industry trends. For example, you can automate business processes to serve customers better.
Keeping up with technology and trends can be expensive, so find out the ROI before spending your money. If the investment is worth it, you can use your savings, get a loan, or borrow money. Short-term loans like car title loans can provide the cash you need to gain a competitive edge.
Wise entrepreneurs look forward to the future, anticipate future changes, and prepare for them. They don’t wait for the changes to come to react. They prepare their entities and teams for change.
In his TED talk on how to build a business that lasts 100 years, Martin Reeves describes prudence as” the ability to detect and react to every tiny threat and remember a previous threat.”
If a company is divided into different modules and a disaster strikes one, the rest remain standing. Embracing modularity is about dividing a company into different faculties. For example, some oil and gas companies split their operations to meet the rising demand for green energy. Coca-Cola has also embraced modularity and set up new sectors that cater to the growing need for healthier beverages. Modularity builds a company’s resilience.
Don’t Be a Loner
The longest-running companies don’t do it alone. They partner with complementary businesses and local communities. If you want your business to stand the test of time, build strong relationships with the brands and people that matter.
Give back to the local community and sponsor charities and local sporting events. Also, network with other company founders so you can look out for each other. In short, build a healthy business ecosystem that’s focused on sustainability and appeals to everyone.