4 Essential Elements Of Business Longevity
March 9, 2022
What are the elements of business longevity?
- Innovation
- Culture
- Organizational System
- Resources and Strategy
Starting a business means looking into the future, trying to last as long as possible to offer what you have to the world. Unfortunately, statistics today show that a large majority of startups only last up to three years, and those who last more than five years are considered lucky. Only those who have the elements of business longevity are expected to continue operations after five years, and even grow bigger at that time!
As someone who is trying to start a business, it is in your interest to incorporate these elements into your working process. Entering the world of business is a very difficult task. Staying afloat in the industry is a different mountain to climb altogether. To help you with that, here are some factors of business longevity that you can use!
Innovation
We already know that change is inevitable as it is constant. There’s no changing that, so a successful business would have to be able to adjust. The economic market, wherever you may be, is always volatile and changing. At times, it can be unforgiving to startups like yours. If you can innovate and find new ways of doing things, then you’d be able to survive those changes. Not only that, but research also shows that innovation encourages productivity and competitiveness which helps in business growth.
Culture
Organizational culture plays a large part in keeping a business afloat because it involves employee engagement and retention. The culture is based on the company’s core values and purpose. If all the employees of a business are driven towards a single purpose, while also embodying the core values of the company, they will stay and do good work. It can also help them become more innovative and help the business grow. As long as your work environment is positive, new talent can be attracted and retained.
Organizational System
The organizational system of a company refers to how it’s structured and how the people under it are organized. This means you have teams and departments that subdivides your employees.
Companies with a good organizational system have departments for production, quality management, information and communications, and processes. If you are organized well enough, with the different tasks of each team properly delegated, then you will have an efficient workflow, one of the keys to business sustainability.
Resources and Strategy
It’s no secret that a company with better resources will have a better chance of surviving in the industry. This accounts for both human and material resources as well. That’s why if you don’t have enough resources from the get-go, make it a priority to acquire them somehow. This is also where the strategy comes in. How will you acquire such resources? How will you use them wisely? Companies that last have their strategies aligned with their business objectives and good performance. Strategizing is an important factor for any successful business, so try to develop this skill early on.
Key Takeaway
Studies show that the elements of business longevity discussed here are almost always present in businesses that last for more than five years. As a startup, you should stand on the shoulders of giants and try to build yourself from there. With these elements at your disposal, your startup will become one that stretches far into the future.
If you want to ensure your company’s survival, try taking advice and guidance from a business veteran with years of experience under his belt. Ferrotech owner Benito T. Keh has been an entrepreneur for a long time, and he’s willing to share his meaningful business knowledge with you! Just contact him here anytime!