Tuesday, July 2, 2013

So you want to be a Fortune 500 company...

The entrepreneur major leagues, also known as the Fortune 500, is a list every company strives to be a part of but only a select few make it there. Here are five important attributes companies on the Fortune 500 list deem necessary, if you have your sights on joining them.

1. Adaptability: Fortune 500 companies are always able to adapt to the ever changing economy. Be ahead of the game, and search out new innovations, because if you know change is inevitable then why not be at the forefront? Apple for example has internalized the idea of adaptability-->they come out with new models and products before other companies have a chance to catch up to their previous model. 

2. Long-term focus: Build a business to last by making long-term decisions, and remember that patience is key.  When building a business for the long-term don't get frustrated if you're not seeing instant results, know there will be a big long-term payoff. Furthermore, don't let the fear of investors make you rethink your long term focus. Investors at Amazon keep boosting stock higher, even though there is little profit change because they trust the CEO to invest in a payoff long-term. 

3. People priority: Having reliable and successful employees is the best way to keep a competitive advantage. Google is a good example of a company that believes in the impact of having good employees and is infamous for having an intense hiring process to make sure they are hiring the right people. 

4. Strong ideas over financial capital: In today's world it is more important for a business to have big ideas than to have big financial capital. Walt Disney and Coca-Cola are good examples of ideas over capital because they focus on imagination and creativity, which they know in the long run will ultimately lead to a bigger profit.

5. Non-stop growth: No matter the size of the company, non-stop revenue growth is crucial if you want to be on the Fortune 500. Companies need to be able to keep up with the revenue of Fortune 500 companies which  has increased at a 4.3% real rate since the list started in 1955.