There are no hard and fast rules for business longevity, but when it happens, it should be celebrated, especially when you consider the odds faced by many entrepreneurs.
According to statistics from the Edward Lowe Foundation, more than half of startup businesses will fold within three years; 75 percent won’t last five years.
Yet, despite those ominous figures, the Small Business Administration estimates a quarter of small employers (less than 500 employees) are more than 20 years old.
Why do some of these businesses thrive while others don’t? There is no clear-cut answer, but many of these longtime companies have found ways to develop their visions into working business models, ensuring that their companies will gain the staying power to succeed well into the next decade. Often, those who have “made it” share some similar business practices that have enabled them to endure and succeed through the most challenging of business cycles.
Here, we’ll highlight some of the MBA member companies that have achieved such business longevity and success, and they are doing it right here in the tri-state region.
According to Ryan Katen, president and general manager of tool and moldmaker Mico Mold, which is marking its 40th year of continuous operation in Erie, “Micro Mold’s success can be attributed to a lot of hard work and strong, talented employees. The tool-and-die market is extremely competitive, so we try to stay abreast of the evolving technologies to remain efficient and in the position to compete globally.
Katen further states, “Continuous investment in the business and employees has enabled us to stand the test of time and position ourselves to continue to grow in the future.”
Geoff Ginader, president of American Hollow Boring Co., also shares a similar view. The Erie-based company, which is celebrating its 100th year in 2018, touts itself as pushing the leading edge of deep-hole drilling, trepanning, honing and machining services.
“American Hollow Boring Co. is a great workshop,” notes Ginader. “It is great because of our focus on our customers, dedication of our employees, and the tools and know-how that we have developed as specialists in the unique area of deep-hole machining.”
In the business world, longevity and success often go hand in hand, but it also requires both meeting and exceeding expectations.