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November 15, 2004
Inc 500
The latest Inc 500 is out, which includes their list of the 500 fastest growing private companies.
While this is kind of interesting to read, there are a few cautions that need to be noted. First, this is a self-report list so there a many businesses that choose not to participate in this type of list. They may not want this type of publicity or may not want the flood of unsolicited contacts that follow getting in this publication.
Second, growth rates are easier off of a smaller denominator (math class time, students...). Assume two companies grow by $100,000. If one only sold $100,000 the year before they would record 100% growth. If the other had $1 million in sales the year before, it would only show 10% growth for the same $100,000 increase.
Third, growing sales at the fastest rate possible is generally not a good thing for any business. Ask any banker.
Posted November 15, 2004 02:23 PM
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at Belmont University in Nashville, Tennessee. He consults with a variety of businesses on start-up and growth related issues, and with larger corporations on re-establishing entrepreneurial cultures within their organizations. Dr. Cornwall's current research interests include entrepreneurial finance and entrepreneurial ethics. He has authored or co-authored four books.
