Successful firms are getting younger

Not only are successful firms becoming more automated, they are achieving success earlier and earlier.

For example, the company WhatsApp was acquired for $19B in 2014 when they were only a 5 year old company with only 50 employees.


Adapting older firms to newer technology is a complicated process.

The older and more established firms often have a harder time making critical updates and replacing legacy processes and systems.


Let’s look at the trends in the data.  These statistics are taken from the average age of a company in the S&P 500 over the course of about 60 years:

  • Average age of a company in the S&P 500 in 1965 was 33 years
  • Average age of a company in the S&P 500 in 1990 was 20 years
  • That same number is predicted to shrink to just 14 years by 2026

Half of the S&P 500 is expected to be replaced over the next 10 years.


What does this mean for your firm?

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Younger companies hold the advantage.  They are starting out fully digital.  They can automatically avoid any legacy systems or processes.


How should your firm respond?

You need to embrace going digital ASAP.  Don’t think any of these trends will wait for you.

If you fight this trend, it will simply replace you.


PS. Read more about the S&P 500 statistics here.

Talk soon,

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