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Utah-based Firms among fastest growing
Heritage Web of Provo shot up by 3,400 percent over four years
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By Paul Beebe
The Salt Lake Tribune
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How do you manage a company that grew by more than 3,400 percent from 2003 to
the end of last year?
A big part of the answer is looking inward for talented leaders instead of
bringing outsiders into the company, says Brad Stone, chief executive officer of
Heritage Web Solutions, a Provo Web site design and programming business.
Heritage's revenue reached $8.2 million last year after growing by 3,443
percent over the four-year period. The blistering pace put Heritage near the top
of Inc. magazine's latest inventory of the fastest-growing private
companies in the United States. The list, which usually catalogs 500 companies,
was expanded to 5,000 this year.
"It's been a home-grown group of leaders. We've not hired anyone from the
outside to our leadership," said Stone, ticking off a list of managers who
started at the bottom of the company and worked their way into executive jobs.
The vice president of sales and marketing began as a telemarketer. The vice
president of accounting doesn't have an accounting degree; he was hired to
compile statistics the company thought it should track. The manager in charge of
Web design started as a designer, Stone said.
"I think coming up through the ranks is key for them to think as we think
and to make decision the way we would make decisions. You bring someone in from
the outside, they have their own style and sometimes baggage that's really not
conducive to how we do things."
Heritage got started in 2001. Today the company has about 190 employees. The
number moves up and down because Heritage regularly hires - and fires - workers
in order to sift out marginal employees.
Heritage first spread the word about its services primarily through direct
mail and telemarketing. Today, the company has shifted to the Web, spending
about $100,000 a month on a pay-per-click sales campaign. The value of Inc.'s
list is difficult to pin down since companies nominate themselves for
consideration. The magazine says the list is a roster of the most innovative
businesses in the country.
Jeff Thredgold, a Salt Lake City economist and Zions Bank consultant, says
such lists are often "beauty contests" that can point up regions with vibrant
economies.
"We have 1.4 percent of the companies [on the Inc. list], but we have
less than 1 percent of the [U.S.] population. That relationship, if you can use
it for anything, shows we're doing a bit better than the national average,"
Thredgold said.
Companies on the list see it differently. While they nominate themselves to
Inc., the magazine demands evidence that growth rates and annual revenue
figures are audited, said Jeff Wiseman, marketing director at Costume Craze. The
Lindon costume manufacturer's revenue grew 691 percent over the four years
ending Dec. 31.
Costume Craze employs 14 people. Founded in 2001, the company pulled in
revenue of $5.2 million last year. Its speedy growth put it at No. 415, inside
the top 500 firms on Inc.'s list.
"Throwing out that we are an Inc. 500 company indicates that we are
stable and we are a company that [suppliers and manufacturers] want to work
with. Probably because of this, we are going to get venture capitalists to come
knocking at our door asking if we want to borrow money. Banks as well, business
loans may be easier to get," Wiseman said.
Seventy-two Utah companies made it onto Inc. magazine's expanded list
of the 5,000 fastest-growing companies this year. Rankings are based on revenue
growth over four years ending Dec. 31. Here are the top 10 Utah companies and
where they rank on the list.
* Heritage Web Solutions, Provo, 3,443 percent, No. 22
* Doba, Orem, 3,202 percent, No. 23
* Firstline Security, Orem, 887 percent, No. 280
* MediConnect Global, South Jordan, 847 percent, No. 311
* Costume Craze, Lindon, 691 percent, No. 415
* eWatches.com, Bountiful, 679 percent, No. 424
* AdvancedMD Software, Salt Lake City, 633 percent, No. 465
* Logoworks, Lindon, 626 percent, No. 472
* D&H Logistics, Orem, 603 percent, No. 491
* Two Little Hands Productions, Salt Lake City, 496
percent, No. 666
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