This is the third episode in our series examining the key factors distinguishing successful businesses. These are all learnings from our team’s many years of investing in Australian small companies. Factors #1–4, as discussed in parts 1 & 2, were: 1) Management are owners/founders or otherwise act as if they are; 2) High returns on capital will often dispense with the need for high debt; 3) Re-invest profits – don't perpetually raise new equity; and 4) Stable management who often promote from within. We turn now to an examination of factors #5 and #6, which we illustrate with examples of Australian small companies.