Entrex Private Company Index reveals a 50 percent reduction in companies exhibiting high-growth, according to Q2 revenue data. Two CEOs from companies distinguished with Top Growth awards this quarter speak out about their methods for success.
Chicago, Illinois, August 14, 2008 — According to the Entrex Private Company Index (PCI) there was a 50 percent reduction in North American private companies showing quarter over quarter revenue growth of 20 percent or greater in Q2 of this year.
2008 over 2007 revenue data for combined April-May indicates that 23% of the PCI portfolio showed revenue growth in a range of 23-86 percent. Looking back one year, Q2 2007 over Q2 2006 data reflects that nearly double that amount, or 45 percent of the overall portfolio, fell into this spectrum that is typically considered “high growth†– exhibiting quarterly revenue increases from 20-193 percent.
Entrex CEO, Stephen H. Watkins, considers the implications of this data; “From where we sit, our position being one of objective measurement, it looks like half as many companies are able to move into, or maintain this high-growth pace.â€
This data came to light as PCI analysts assessed quarterly revenue performance to recognize deserving companies for the Q2 Top Five High Growth Award. Those firms that excelled to point of distinction this quarter are:
– ABC Packaging Direct (www.abc-packaging.com) – Cleveland, OH – Custom packaging solutions designed online.
– GCS Agents (www.gcsagents.com) – Salisbury, NC – Integrated customer care solutions for major corporations.
– NouvEON Technology Partners (www.nouveon.com) – Charlotte, NC – A regional business and technology consulting firm for the Fortune 1000 and mid-market companies in the Southeast.
– Rising Medical Solutions (www.risingms.com) – Chicago, IL – A national medical cost containment and care management organization that services the auto, workers’ compensation and liability markets.
– TicketCity.com (www.ticketcity.com) – Austin, TX – Sports, entertainment and major event ticket broker.
Making it look easy to lead the current high-growth pack, this group experienced an average quarterly revenue increase of $1.6 million and median quarter over quarter growth of 56 percent.
David Marinac, CEO of ABC Packaging Direct, comments that their growth can be attributed to an innovative business model. “We utilize technology to push clients to us instead of pounding on their doors. The client is already interested in our products and services and is willing to share what experiences they’ve had in the past. Having this information is critical to shortening the sales cycle. To quote one of my favorite books—‘It’s Not the Big That Eat the Small…..It’s The Fast That Eat the Slow.’â€
As CEO of Chicago-based high-growth company Rising Medical Solutions, Jason Beans holds a contrasting belief of steady-and-stable as to their reasons for success in today’s market.
“While the medical cost containment field may not be the sexiest industry during good market conditions, it is certainly stable and more recession-proof than other industries in a down time. No matter what type of economic environment our country is experiencing, people always need medical treatment – it’s not a luxury, it’s a necessity.â€
Beans also comments that Rising spent past years putting critical systems, processes, and talent in place to create a scalable infrastructure that allows for substantial growth without sacrificing product quality.
Past quarterly top growth companies can be viewed at www.privatecompanyindexcom/top5.php.
About the Entrex Private Company Index:
Published monthly, the Entrex Private Company Index (PCI) is a proprietary benchmarking tool that measures revenue performance in the sector of private companies with $250 million or less in annual revenue. The PCI is recognized by Investment professionals and financial media as a leading and authoritative source on private company revenue performance. The PCI provides the financial markets with the ability to objectively measure private business activity — allowing for historical analysis, comparison and predictive forecasting. www.privatecompanyindex.com.
Press release distribution by PressReleasePoint
Contact:
Erika Conefry
Entrex Private Company Index
311 South Wacker Dr.
48th Floor
Chicago, IL 60606
877-436-8739
[email protected]
http://www.privatecompanyindex.com
