How Delaware has more corporations than people
A story, quote and lesson about searching for ideal conditions
Never underestimate a head start
When it comes to setting yourself up for success, few places illustrate this concept better than Delaware. Though it’s the second smallest state in the U.S., Delaware punches well above its weight in the corporate world.
Over 60% of Fortune 500 companies and over half of all publicly traded corporations listed in the New York Stock Exchange are incorporated there, and it’s not because they enjoy the beaches. Instead, Delaware offers a unique set of advantages that make it the ideal starting point for businesses looking to thrive.
But why Delaware? In 1899, the state enacted a General Corporation Law that was both flexible and business-friendly, giving companies operating in Delaware more leeway than most other states.
Over time, this legal foundation became more sophisticated with the creation of the Court of Chancery—an expert court dedicated solely to business disputes. Add in tax incentives and a streamlined incorporation process, and Delaware positioned itself as the gold standard for companies seeking stability and simplicity.
For most companies, the message was clear: Starting in Delaware was like beginning a race one step ahead of the competition.
Delaware’s rise to prominence didn’t guarantee the success of every company incorporated there. Many businesses have failed despite the state’s advantages, while others have thrived without ever setting foot in its borders.
What Delaware truly demonstrates is the importance of starting from a position of strength—a platform that gives you even a slight edge in the long run. But that edge is just the beginning. A company’s true success still depends on its vision, execution, and the effort it invests beyond incorporation.
“You can’t build a reputation on what you are going to do.”
Henry Ford, founder of the Ford Motor Company, which was incorporated in Delaware in 1919.
The lesson here extends beyond corporations. Just as Delaware creates an environment that fosters success, we can look for ways to optimize our own starting points in life. Whether it’s choosing the right environment, investing in our education, or developing good habits, the initial conditions we set for ourselves can have a profound impact.
However, it’s crucial to remember that an ideal starting point is only part of the equation. A head start helps, but what truly matters is what you do next. Whether you’re applying to your company or yourself as an individual, success requires persistence, adaptability, and a commitment to growth.
Starting in the right place or with the right resources can only take you so far. The rest is up to you. Like Delaware, finding an optimal starting point is a smart move—but staying ahead takes effort.
So now I ask you:
How can you identify and create better starting conditions in your life?
This is a great example of life. We all can find the luck of starting from a better position than others, but it is in us to make it valuable and have success. This is the hardest part, but we have to also seek for the opportunities of starting from a better position, and build from there.