There are certain things that most of the successful companies of today have in common. While it may seem that being successful in business is as easy as having a popular product or service, lasting success and growth sustainability is more complicated than that. In a recent report by Brookings, there are five things that top companies have in common.
The top U.S. companies in the first half of 2018 all feature:
- High Growth Rates in Revenue, Employment or Both
- High Revenue Ratios Per Employee
- Companies Are Smaller in Size
- They Each Have a Key Focus on Knowledge Based Productivity
- The Companies are Under 20 Years Old
These key growth patterns in these companies are important and show that many of the breakout companies are newer which is good news for start-up companies. In years past, many of the top growth companies were considered to be giants in the world of business. But today’s trends are the exact opposite of the established norms of business success. Younger companies are making a significant difference in the world of business. This is in part because of the advancements in technology and modernization which are happening at a record pace.
Another key factor in the success of these top performing companies is they have growth and advancement patterns in multiple areas. This signals that these companies grow on multiple fronts and continue to look for ways to expand their offerings. It is often recommended in business strategies to not over extend a company beyond the limits and capacities for which they are capable of handling. However, diversity in a company is very often the key to successful entrepreneurships.
Another commonality of the companies in the study, is that each of them show growth trajectories using high Intelligence and Technical information as a base for their productivity platforms. In fact, of the top 5000 surging American businesses a full 30% of them are technology based companies. This is certainly not surprising as the number of companies across the country and the world using advanced technology has skyrocketed in the last 15 years. While some of the biggest names in business today feed the world of technology, many others use high amounts of technology to perform vital services for their customers.
The top five industries for growth in 2018 include:
- IT Services
- Advertising and Marketing
- Business Products and Services
During analysis of the successful companies in the study, it was noted that there are specific patterns for their success. These companies were shown to have used more technology in their day to day operations. This includes: high database technology, advanced intercommunication software and accounts payable software to ensure their businesses run efficiently. Additionally, the top five business sectors in the study were noted to be companies with a significant customer service focus. While there are times when technology is counterproductive to customer care, new technology affords many companies a wealth of data opportunities. Many of today’s technological advancements help companies be more driven, more productive and more focused.
With new and emerging technology, today’s businesses can: pinpoint customer needs better, target marketing to the right people and service customers better through technology. The data systems have proven to help these companies process their customer needs better and more efficiently on a day to day basis.
It should come as no surprise that some of the fastest growing companies include: Amazon, Facebook, Netflix and NVDA. The list also includes quite a few Cloud companies like: RingCentral, ServiceNow, Carbonite and Paycom Software. Other breakout companies include: SolarEdge Technologies, Viper Energy Partners, Interactive Brokers and Supernus Pharmaceuticals. Each of these companies are leaders in the stock market and are noted in the top 50 list of U.S. companies with strong emerging growth patterns.
by: Vincent Stokes