Lessons from this week’s INC 500 list of fastest growing companies.
The new INC 500 list of America’s fastest growing companies just came out.
It’s full of fascinating statistics about these top performing young companies.
Here’s some stats that I thought you might find interesting:
39% said running their business has had negative effects on their health.
30% had already had children before starting their companies.
59% worked at a corporation before they started their business. (10% started it direct from college and 9% came from start ups).
Interestingly 46% of the founders have made investments in other start ups.
54% have policies in place to support remote workers.
68% give their employees different jobs to help their development. (23% reimburse money their staff spend on training)
59% said finding good staff was one of their biggest issues. (We can all relate to that one).
And when it came to getting the funds to start their businesses, 74% got it from their personal savings, 20% from loans from family and friends, and surprisingly 22% got it from credit cards.
45% used less than $5000 to start their company. 19% used between $10,000 to $50,000.
Only 4% of the Inc 500 its got their start up funds from venture capital. And even now 47% have never sought out VC money.
Finally, when it comes to their exit plan, 42% aim to sell to another company, 13% to investors and 20% haven’t even thought about it.
For me, the stats that stand out are the ones about their original capital raising. Clearly most of them did not use a lot of money to start their company. And they still did pretty well.
A great idea, good people and hard work is usually much more important than funds.
We should strive to get most of our growth from our company’s cashflow.