How to Build a Durable Business
An ancient Japanese temple roof—a symbol of timeless craftsmanship, resilience, and enduring foundations in both architecture and business.
Source: @willianjusten via Unsplash
SUMMARY | How to Build a Durable Business: Strategy, Resilience, and Long-Term Growth
Building a durable business is more critical than ever in a world of shrinking corporate lifespans and high startup failure rates. In this article, we explore what durability means—from centuries-old Japanese firms to modern global brands—and why it matters for long-term success. Drawing on insights from McKinsey, Harvard Business Review, and real-world case studies, we unpack the four foundational pillars of durable businesses:
Risk Management – Anticipating and preparing for threats.
Governance – Strengthening leadership, accountability, and ethics.
Operations & Finance – Building systems and financial discipline for resilience.
Resilience & Adaptability – Embedding agility, innovation, and cultural readiness for change.
Mapping out proven methods like ERM, scenario planning, Kaizen, agile strategy, and values-based leadership—and how to apply them practically across any industry. Blends research with real examples, hopefully offers a thoughtful guide to designing organisations that not only survive—but thrive—across decades.
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durable
adjective
able to withstand wear, pressure, or damage; hard-wearing.
"porcelain enamel is strong and durable"
noun
short for consumer durables.
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noun
a person's regular occupation, profession, or trade.
"experts who typically conduct their business over the internet"
commercial activity.
"firms who want to do business with Japan"
8min read
WHAT IS A DURABLE BUSINESS?
A durable business is one that stands the test of time. It weathers economic cycles, adapts to market shifts, and remains resilient in the face of uncertainty. More than just survival, durability means sustained success—thriving through innovation, strong governance, and financial stability.
Durability isn’t about rigid structures; it’s about building a business that can withstand shocks and evolve. Companies like Apple, Toyota, and Johnson & Johnson exemplify this, having successfully navigated crises, industry disruptions, and leadership transitions over decades. These companies didn't just react to change; they were built to absorb it, adapt, and emerge stronger.
The concept isn’t new. In fact, Japan is home to over 20,000 businesses that are more than 100 years old—referred to as shinise. One of the oldest, Kongō Gumi, was a temple-building company founded in 578 AD. It survived 1,400 years of economic shifts, wars, and regime changes before eventually becoming a subsidiary in the early 2000s. What kept it going? A strong identity, niche expertise, and the ability to adapt—from building temples to making coffins during WWII.
Whether it’s a 500-year-old family business or a global tech enterprise, the formula for durability shares some common foundations.
WHY IS durability IMPORTANT
In today’s volatile world, businesses that lack strong foundations are increasingly vulnerable.
Shorter corporate lifespans: In 1965, the average tenure of a company on the S&P 500 was 33 years. Today, it’s closer to 18 years, and by 2027, it’s projected to shrink to 12 years (McKinsey Global Institute Report, 2017).
Startups at risk: Around 70% of startups fail by year 10 (U.S. Bureau of Labor Statistics, 2023). Many falter due to poor planning, lack of market fit, or scaling too soon.
Investor pressure: Firms that take a long-term view outperform short-term peers on revenue, earnings, and job creation (McKinsey Global Institute Report, 2017).
Sustainability pressures: Stakeholders increasingly demand that businesses act with environmental, social, and governance (ESG) responsibility—requiring long-term thinking, not just quarterly performance.
“Enduring companies balance vision with execution. They think long-term but operate with discipline.”
HOW to build a durable business
Durability doesn’t happen by chance—it’s built intentionally. From century-old family businesses to innovative global leaders, the companies that stand the test of time share a few core foundations. Below, we consolidate both research-backed frameworks and real-world lessons into four practical pillars every business can use to build for the long haul.
1. Visionary Leadership & Strong Culture
Durable businesses nearly always begin with durable leadership. Leaders who think beyond the quarter, stay anchored in purpose, and foster a culture of trust, resilience, and learning are at the heart of companies that endure.
Set a clear purpose and values: Companies like Herman Miller, founded in 1905, thrive on deeply held values. Max De Pree, its former CEO, said it best: "Profit is the result of doing well what we do as a company, not the goal.”
Build a resilient culture: Long-tenured employees carry institutional memory and help onboard new generations. Research on century-old companies finds culture often outlasts individual leaders.
Preserve the core, stimulate progress: Jim Collins’ mantra rings true—durable businesses don’t compromise on values, but evolve everything else.
Tool: Document and communicate your purpose, mission, and values across the company. Review regularly to stay aligned.
2. Financial Resilience & Risk Management
If leadership is the compass, finance is the ballast. Without financial stability, even the most visionary company can collapse in a storm.
Maintain strong cash flow: 82% of small businesses fail due to cash flow issues (SCORE, 2019). Build reserves and avoid overleveraging.
Diversify revenue: Don’t be overly reliant on a single client, market, or product.
Scenario Planning: Popularised by Shell in the 1970s (Shell Global, 2020), this tool helps leaders map possible futures and prepare for each.
Enterprise Risk Management (ERM): Establish a framework to identify and mitigate threats.
Real-world example: Southwest Airlines hedged fuel costs before the 2008 crisis—a move that saved billions.
Bonus Insight: Durable companies accept a little slack—redundant systems, excess inventory, or spare capacity—to stay agile in uncertain times.
3. Innovation, Adaptability & Continuous Improvement
Companies don’t last unless they evolve. Markets shift, technologies disrupt, and customer expectations change.
Embrace Kaizen (continuous improvement): Rooted in post-war Japan and exemplified by Toyota, Kaizen empowers teams to solve problems, reduce waste, and improve over time.
Balance core and edge: The best firms are ambidextrous—strengthening what works while exploring the next big thing.
Encourage experimentation: Google’s 20% time produced Gmail. Innovation often comes from side bets.
Stay close to customers: Slack pivoted from a failed gaming platform to a workplace staple by paying attention to internal tool feedback.
Tool: Run regular retrospectives, customer interviews, and pilot programs. Reward learning and iteration, not just success.
4. Sustainable Stakeholder Focus & Long-Term Thinking
Durable businesses play the long game. They build trust with customers, employees, partners, and communities—and are rewarded with loyalty and resilience.
Adopt stakeholder-centric governance: Mars Inc. (founded 1911) famously prioritises fairness across the value chain. “We only achieve the best results if we are unselfish in these relationships.”
Act sustainably: Unilever’s Sustainable Living Plan not only reduced environmental impact—it drove innovation, built brand loyalty, and attracted ESG-conscious investors.
Plan for succession: Companies like Beretta (founded in 1526) survive by preparing future generations with shared purpose and early responsibility.
Tool: Identify your key stakeholder groups. Define long-term value for each—not just financial returns.
Strategy is execution over time. Whether you’re a founder, CEO, or transformation leader, business durability depends on clear values, strong systems, continuous learning, and long-term vision. When you put these into practice, you don’t just create stability—you build something that lasts.
Durability Beyond Business: Lessons from Nature, History, and Life
Durable businesses don’t exist in isolation. They mirror patterns of longevity and resilience found in nature, human behaviour, and historical institutions. Building a business that lasts isn’t just about good strategy—it’s about creating something that behaves more like a living system: adaptable, principled, and built to grow through change.
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In nature, durability is everywhere. Old-growth forests survive for centuries because of their biodiversity, shared root systems, and ability to regenerate after disturbance. Similarly, businesses that endure build strong networks, encourage diversity of thought and income, and adapt to their environment.
Companies with deep supplier and customer relationships (root systems) can withstand shocks better.
Diversified revenue streams act like biodiversity—buffering the business when one area is hit.
Flexibility, not rigidity, allows regrowth after setbacks.
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Charles Darwin didn’t say it was the strongest or smartest who survive—but those who adapt. In business, this principle holds firm.
Antifragility, a concept by Nassim Nicholas Taleb, goes further: some systems grow stronger under stress. Think muscles strengthening through resistance.
Antifragile businesses learn from disruption, treat crises as feedback, and improve each time.
“The resilient resists shocks and stays the same; the antifragile gets better.” — Nassim Nicholas Taleb (Antifragile, 2012)
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Just as people need grit to persevere through adversity, so do businesses. Angela Duckworth (Grit, 2016) defines grit as passion and persistence toward long-term goals.
Many durable companies reflect the stubborn determination of their founders—Steve Jobs returning to rebuild Apple, or Honda’s founder rebuilding factories multiple times.
Culture of perseverance becomes embedded in teams, helping companies navigate tough periods without losing their identity.
Just like in life, balance matters. A business that over-prioritises profit at the expense of quality, employee wellbeing, or innovation will eventually run into trouble—just as people do when they ignore key aspects of life.
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Long-lasting institutions—like universities, religious orders, or dynasties—share common traits with enduring companies:
Clear, compelling purpose.
Strong governance structures.
Periodic reform to remain relevant.
IBM, for example, has outlived most of its early 20th-century peers by evolving from hardware to consulting. Sears, once dominant, failed to adapt and faded. History rewards those who plan for the long term—a view Jeff Bezos famously instilled at Amazon with 5–7 year strategic cycles (The Everything Store, 2013).
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Enduring companies often aim to build a legacy, not just a product. They measure success not only by profit, but by long-term contribution to their communities and stakeholders.
Mars Inc., founded in 1911, embodies this view: “We only achieve the best results if we are unselfish in these relationships.”
Arie de Geus, a Shell strategist and author of The Living Company (1997), famously observed: “Companies die because their managers focus on the economic activity of producing goods and services, and forget that their organisation’s true nature is that of a community of humans.”
When leaders nurture the human community within their organisations—and honour relationships outside it—they create businesses that people want to support, work for, and sustain.
“The resilient resists shocks and stays the same; the antifragile gets better.”
Just as a centuries-old oak tree stands tall through storms—with deep roots and flexible branches—a durable business combines strong foundations with room to grow.
Business resilience is not separate from life—it reflects the same values: adaptability, purpose, stewardship, and perseverance. And when we build with those values in mind, our companies become more than machines—they become part of the human story.
Final Thoughts
| “Businesses don’t just need bold ideas—they need strong foundations.”
Durability is the quiet strength behind every great company. It’s not flashy, but it’s essential. It doesn’t resist change—it enables growth through it. Whether you’re launching something new or leading an established organisation, the opportunity is the same: to build with intention, to lead with values, and to adapt with courage.
The most enduring businesses don’t wait for the future—they actively prepare for it. They ask better questions, align around purpose, and make space for both focus and flexibility.
Here are a few leadership questions I often return to—whether I’m supporting a startup or working alongside an executive team in a transformation:
Are we building for this quarter or the next decade?
How well do we understand our risks?
Do we have the right governance to stay aligned?
Are our operations built to scale and flex?
Are we adapting quickly enough to what’s coming?
These questions don’t have quick answers—but asking them consistently is part of what makes a business durable.
Written by Rebecca Agent with credit to the following AI tools for assistance in producing this content:
Research, writing, reader timing and SEO | ChatGPT
The Deep Dive Podcast Overview | NotebookLM by Google
Text to Speech Audio Summary | Eleven Labs
Editorial assistant | Grammarly (English US)
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