Before registering your company to have Fortune 500 logo, you should understand how it works or the basics of it. Simply, it is a list of the top 500 companies published by Fortune magazine. This organization selects the top-notch 500 companies based on the annual volume of revenues. It is not an ordinary list to complete so many things but this special list shortlists the best corporate/private sectors with awesome achievement.
Know the Basics of Fortune 500 List
The First Fortune 500 list was given to people in 1955. At that time, the focus fell on the building, manufacturing, and mining sectors excluding service providers. The list included the powerful manufacturers based in America. It excluded many companies which did not match the Fortune 500 basic criteria. Gradually, the process of data comparison and verification changed a lot introducing new methods for selecting Fortune 500 companies in the US. In 1994, the bench of the jury of Fortune expanded the list by allowing servicing sectors to participate. Many giant IT companies like IBM have got brand logos.
Parameter of Eligibility
Fortune 500 list doesn’t confirm the inclusion of non-American foreign companies and private sectors in collaboration with the international companies located outside the US. Any incorporated company, insurance service provider, mutual funds, stocks, and share trading organizations in America are eligible for Fortune 500. However, they need to submit tax files to the Federal government. The company can be a public sector or a private with operating unit in the US. There will be no legal barrier for this organization to have this status.
Estimated Annual Revenue to Include a Company in Fortune 500 List
Fortune magazine estimates the annual revenues earned by an American public/private sector. The companies have to show their total revenues which they obtained by the end of the fiscal year. Well, all private or other commercial organizations in America do not follow the same fiscal year to calculate the annual revenues. Sister branches working with the parent companies are also able to provide the whole annual estimated revenue details to Fortune for cross-verification. It also checks how much a company stores for risk management during tough times amount.
Is Fortune 500 Only Single Survey Organization to Make the List?
Fortune 500 is not only a single organization to survey choosing top 500 companies. Dow Jones Industrial is another tough competitor which also declares the list of best American companies depending on the annual revenue earning and financial strength. However, Fortune 500 has vast exposure all over the US with accuracy in preparing the long list of including top 500 companies in America.
Is It Easy to Get Fortune 500 Status?
The objective of becoming a lucky Fortune 500 company is not easy for an entrepreneur. The revenue calculation is varied. In 1955, the 500th company in the Fortune list got the last position with $49.7 million to have the Fortune 500 status. Over decades, in 2018, CINTAS taking the last spot in the list of Fortune 500 companies got a basic platform with the estimated $5.428 billion to become Fortune 500. So, with times advancing, there will be diversification and varieties to evaluate the pecuniary resilience of the companies to have the Fortune 500 brand.
New Start-up Companies Trail behind the Old Reputed Companies to Have Fortune 500
To get the international glossy Fortune 500, a company must have a sound reputation and longevity to stay alive in the industry. The management should have a key role in the development of the national economy of America. If the company is just a start-up with limited financial resources, the feasibility of inclusion in the list is low. Recognized brand companies that run business over 20 to 40 years with record-breaking revenues earning nourish the dream of getting this international accolade. Apple, IBM, and CINTAS built up their economic infrastructures over a couple of decades. Longevity is another factor that gives a wide range of scope to a company to stand out for gathering more dollars to become powerful in the global market.
Adaptability – Another Solid Factor for You to Run All the Way to Reach Target
It is a long marathon run for an organization to reach the milestone. The company has to accept the innovations both inside and outside. It should not try to hover within its territory when most of the companies are keeping in touch with modernization. So, value this transition for reinforcing your position amid the stronger rivals. If you trade with desktop computers with old-fashioned settings and configurations, you have to fight for survival through technological advancement. Put more hi-tech tools, money, talent, and manpower so that your corporate organization will restore dynamic horsepower to be the giant player in the arena. Bring mobile handsets, smartphones, and ultra-sleek tablets to your inventory for luring the new generation.
Hope these above points will help you to understand the criteria for being selected in the list of Fortune 500. If you have any query regarding those, you can feel free to contact us.