Is longevity enough for business success?In a word, no. If you don't believe me then look to some well known long lived brand names no longer operating as they did during their company's heydey. When was the last time you bought something from Montgomery Wards, RCA, Paine Webber or F.W. Woolworth?
What causes well known brand names to lose market share? Well, success brings competition and you must constantly be working to keep your edge in business. If not, you will be squeezed out of the marketplace or perhaps merge for business survival.
Longevity is nice to put people at ease. I wouldn't mind a 100 year history for my particular business because it's a nice pedigree to present to consumers. It makes people feel comfortable to consider you are likely to be around in the future based upon your past. I don't discount businesses with long histories but it's not the only thing to consider when handicapping the odds for operating in tomorrow's marketplace.
Historically, a bigger factor for success seems to have been value and not longevity. The more I read about big business, I have come to find out value had been key in their growth. Generations before, people wanted a product or service for an attractive price. Fortunes have been built on that concept. Imagine that?
I am a CPA in San Antonio and serve individuals and small businesses. We provide bookkeeping, payroll, taxes and more. Give me a call for a free initial visit. What do you have to lose?
Richard J. Garcia | 07/05/2010