Reilly Newman | The lifespan of businesses is shrinking. Studies show that the average age of a company was 67 years in the 1920s, while experts project that companies have the potential to last 200 to 300 years old. Now, that lifespan is down to about 13 years or so — which doesn’t paint a great picture for our nation of entrepreneurs.
From an average of 67 years to now just 13, it’s obvious that the economy and business have evolved. However lifespans may change over time and adapt to the era’s technology, we can still see the patterns of maturity in businesses. From newborn startups to the more mature generational businesses, there is a pattern of maturity that seems to direct the effectiveness of the brand as well as the success of the business.
“Maturity” is a nice word because you can have a youthful business that is rather mature and an older business that still acts juvenile. A mature brand approaches the market with deliberate strategy and intelligent decisions. They are self-aware and realize their weaknesses, but also invest in their strengths. Whether they are a startup ready to market or a generational business that has been around the block, their maturity can make or break their position in the market and lifespan.
An immature or juvenile company is reactionary. They don’t plan and only focus on immediate results. They see customers as transactions and not relationships. They unfortunately are too busy putting out unnecessary fires that they never can get ahead on building relationships or investing in areas that truly move the needle. They don’t know who they are or even what makes them special. They lack the clarity to lean into their strengths and choose to be everything to everyone because they are too scared about losing customers.
We work with companies of all ages, from startups to 125-year-old generational companies and I can confidently tell you that the older companies do have a certain wisdom about them. They see their brand as an asset that helps bring clarity to their organization and to help market their offerings.
Although this mature wisdom is prominent in older businesses, it may not be just for businesses that last a handful of decades. This mature wisdom may come from past experiences from the owner or perhaps investors or a mentor. Just as the immature mindset may gravitate toward younger companies, these companies can gain a healthy perspective through the inevitable maturation via experience.
When it comes to these mature businesses, whether they are 125 years old or 3 years old, here are 3 main patterns I see in their perspective and behavior when it comes to business:
- Patient Perspective
Long-term thinking and responsive decisions at each step. As you know I believe when a company has a brand-first mindset, they naturally will be thinking long-term. They won’t see the transactions that create their annual revenue, but they’ll see the relationships that they create with the humans that buy from them. This takes patience and whoever has the most patience wins. - Investor-like Behavior
They see the brand as part of the business. Investment in the brand is an investment in the business that will drive results for the company. They see the brand as an asset for success. Yes, this most likely comes with the patience mentioned previously since brands aren’t built overnight, but brands take a patient and consistent behavior of nurture and investment. They don’t take shortcuts or cheap tricks, they invest diligently and build quietly. - Adaptation Attitude
These mature companies are not afraid to adapt and evolve to the times. They are willing to be flexible and respond to the changing times; this is also what keeps these businesses from being rigid and dying. As the old Japanese proverb goes “the bamboo that bends with the wind is stronger and more resilient than the oak tree that resists.” — A timeless example of this is how Wrigley’s evolved from soap to baking powder to the now gum empire that it is.
Rome wasn’t built in a day, and your brand won’t be built overnight. Studies after studies show that the true indication of success for a business or even an investment portfolio is consistency and patience. As you gain experience, this becomes more true because you learn the main aspects you should be investing in. This maturity brings wisdom that empowers you to focus on the levers that make the biggest difference for your company. Brand being one of those levers that will grow your business and mature into a bountiful crop that keeps giving.
