The Salt Lake TribuneUtah-Based Firms Among Fastest Growing
Heritage Web
of Provo shot up by 3,400 percent over four years
By Paul Beebe The Salt Lake Tribune 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 |