Saw this on twitter, and thought it provided some useful qualitative factors:

Recently read an awesome book about companies that are older than 100 years.

Forget $1bn paper pipedream valuations. These are the real unicorns.

Survivors.

What do they have in common?

Why do they survive?

@vtenhaken wrote in ‘Lessons from Century Club Companies’ that there are five factors of enduring companies:

1. Strong Corporate Mission & Culture

No surprise with this one. But it goes deeper ...

Management of Century Club companies have a deliberate focus on continuity, rather than making a name for themselves.

This means consistently saying ‘no’ to a bunch of short term growth opportunities.

Instead saying ‘yes’ to a purity of long term mission.

2. Unique Core Strengths

They have something special, unique and enduring that set them apart.

This is no different to a successful ‘young’ company.

Where Century Club companies stand out, though, is the long term view they apply to these strengths.

But that doesn’t mean they are change adverse. They are, by definition, Darwinian.

They evolve their strengths to increase relevancy as conditions and technology change.

3. Close Relationships with Business Partners

They can’t do it all on their own, and they understand that.

By leveraging the capital and expertise of other businesses, they bake a much bigger cake together.

They calculate a much higher cost of switching customers or suppliers.

Synergy games, but measured in decades.

4. Long Term Employee Relationships

TenHaken describes the importance of ‘institutional memory.’

I love this idea.

It hardwires in the founding principles, and makes it harder for a rogue actor, or a tough cycle to break down the principles that made them endure.

5. Active Members of the Local Community

I was more cynical on this point. It’s important. But is it really one of the five things that lead to 100 year survival?

TenHaken makes a great point though.

Local activism over long periods of time deepens roots.

And it gets reciprocated… over time the community builds and shapes around the business.

A shared accountability for the success of each.

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It made me think of companies like Soul Patts and Brickworks. Any others you can think of?