3 Things You Must Know If You Want to Build a Business That Lasts a Century and Beyond

Across the world, there is an alarming long-term trend: Companies are struggling to survive.  An Eearnest & Young report in 2023 shows that, in fact, the average lifespan of an American S&P 500 company used to be 67 — now it’s only 15 years. The report suggests that even some of the most well-prepared companies are not guaranteed to last, and that is worrying. These figures made us wonder how one can build a business that lasts well beyond a century.

As part of a centennial company that was passed to the author as the fourth-generation heir in 1993, the Kowloon Motor Bus Company (KMB), founded by his grandfather in 1921, will officially be 104 years old in 2025. In the current climate and having survived the Japanese occupation during World War 2, the global financial crisis and more recently, the 2020 pandemic that shook the world, I am proud that we have reached such a milestone. From his personal experience and further research, he has identified the key qualities to help businesses last a century and beyond.

1. Adapt or die.  The famous words of Charles Darwin, written in The Origin of Species in 1859, ring true even here in the business world. Staying relevant within an ever-changing world requires companies to adapt to customers’ needs and market requirements through thorough analysis, teamwork and rational thinking.  Over more than a century now, KMB has consistently used this adaptation rule to evolve itself with the times.
2. Balance innovation with stability.  In business, innovation usually means risk-taking and sometimes requires one to venture into the unknown. Without innovation, you lose your competitive edge in the market. But too much innovation, and you risk spreading yourself too thin and potentially losing to your competitors. So, how can innovation be part of your 100-year plan? The trick is to balance innovative ideas with the smooth running of the business at hand.  A thorough, data-based risk analysis should be deployed as a core strategy where innovative measures are considered. The culture of the company should be innovation-led but in a steady manner so that good ideas are in constant supply and in use wherever possible. A good leadership strategy within the company should also include a collaborative approach when approaching innovative ideas. You should work internally with your team, as well as use external resources and customer insights to ensure you are continuously, consistently improving. And with intent — never innovate for innovation’s sake.
3. Be socially responsible.  Business is all about people, be that your own team members, your customers or the wider community the company engages with. Having clear social goals within a company makes up its raison d’être, clearly signaling that the organization is here to stay long-term and to serve the people around it, not just its shareholders.  There is logic to embracing social responsibility within a company, too, so that customers are happy to pay a premium for the goods and services of a company that’s perceived to be doing good to society. This point aside, customers are also seeking companies that are accredited for being socially responsible.