Nortec’s 20th Anniversary is approaching in March. According to the US Small Business Administration (SBA) in 2009 there were 552,600 new businesses, 660,900 closures and 60,837 bankruptcies. 2009 was a net loss of 169,137 businesses so not a good year for business. 2005 had a net gain of 39,176 businesses and this is a better sample of most years. SBA states that 50% of businesses survive 5 years, 33% survive 10 years and 26% survive 15 years. The longer a business survives the more likely it will continue as 67% of those that survived 5 years survive 5 more. 79% of those that survived 10 years survived 5 more years resulting in 26% reaching 15 years. This extrapolates to 85% of the 26% of business that survived 15 years will survive the next five years and this would mean 22% of businesses survive 20 Years – this is about 1 in 5. This success is certainly something worth celebrating!
I was reflecting on the key principals that have given us 20 years of success. Nortec has 5 principal values: Excellence, Integrity, Responsive, Flexibility and Follow up and these principal values are the foundation of Nortec. Here are 6 keys principals that build on the foundation:
1. The first rule of business is to stay in business
2. Business model trumps everything!
3. Hiring the very best people at all levels
4. Commitment to the business – no matter how difficult things get!
5. Thinking long term
6. Aligning management and compensation around the goal of profitability